In the for-profit sector, customers provide revenue that covers the cost of providing the
products and services they buy. In the nonprofit world, the beneficiaries of nonprofit services
usually provide little, if any, of the revenue to fund the services they receive.
Despite this distinction, nonprofits must think like for-profit organizations when it comes to
negotiating if they want to fully recover their costs. Of course gratitude towards funders is
critical, but thankfulness can’t stop us from having honest discussions about expenses. This is
even more critical with recent years’ budget and economic pressures on government funders
and private donors. After all, success is defined not only by providing needed services, but
also by continuing to do so year after year.
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