Revenue Projections

We covered revenue models for nonprofits earlier in this guide. Before you can write a revenue model statement for your business plan, you must have determined what revenue sources are realistic for you to pursue and rely on in your first year or two of operations.

Your business plan will list the potential revenue sources and project conservatively how much income you expect and when you will receive it.

INN has surveyed its members and studied their revenue sources and found the following:

  • Dependence on foundation funding is decreasing because it does not provide long-term sustainability.
  • More than half of the 88 news organizations in our 2018 INN Index survey have three or more revenue streams, and one-third have four or more.
  • The successful sites put at least half of their resources into running the business, reining in editorial costs and working on revenue generators such as events, advertising and sponsorships.
  • The most cost-effective revenue generator is simply asking people for money.

To add credibility to your assumptions and projections, and to confirm that you have a marketable plan, ask a sample of your target audience what they are willing to pay for a subscription, membership or sponsorship. Individual donors and particularly major donors are relatively undeveloped revenue sources for news nonprofits, making up one third of total revenue for the organizations in the INN Index. By comparison, individual donors provide more than 70 percent of revenue for all nonprofits across the U.S., according to Giving USA.