I need help with a Management question. All explanations and answers will be used to help me learn.
Read the posts of your peers and respond to at least one, either by refuting all or part of the position taken, or by adding to it. Suggest challenges that may result from the revenue sources and restrictions for the learner’s organization. As you did in your initial post, use your research to support your claims and be sure to cite your sources according to APA guidelines.
Student post down below:
There are both advantages and disadvantages to having multiple revenue streams for nonprofit organizations. One of the advantages obviously is that there is no lack in resources or the ability to get access to the resources that may be needed for the organization to be successful. Revenue diversification describes the process in by which investors select a particular revenue portfolio, which contrast between desirable returns, and undesirable returns (Carrol & Slater, 2009). There is a certain level of difficulty involved in selecting this type of portfolio setup, because there are separate functions that will be saved by different portfolio sets, and so investors will have to assume a certain level of risk (Carrol & Slater, 2009). When organizations have to rely on one main funder, that organization can become resource dependents, and this could have an effect on the organization both financially, and structurally (Carrol & &Slater, 2009). Organizations who place all of their eggs in one basket run the risk of later scrambling for resources that they may need to accomplish some of their goals.
The primary revenue source for the NAMI organization would be from donation. They receive a large sum of their revenues from private donations, as well as having some corporate sponsors. NAMI also has an ambassador program in which they have some well know individuals to mention and advocate for the organization. NAMI also organizes walks for different causes, and allows for individuals to sponsor teams in which donations are made to the organization. There are no fees for services that are provided by NAMI, and they have a host of volunteers, some of which are battling mental illness themselves who help out the organization tremendously.