Hello, STEEMIT Community!
Today, we want to continue introducing more financial fund models for nonprofit organizations. This is part three of a four part series, so if you missed our post about the first six types, please check out our previous posts!
The seventh model is called Beneficiary Broker. These nonprofit organizations work to link beneficiaries with government-funded or backed services. One unique characteristic is that several organizations will compete with one another to provide such services since the beneficiaries are free to choose the nonprofit they want to receive the service from. The main areas include employment services, housing, healthcare, and student loans. One example is the Metropolitan Boston Housing Partnership (MBHP), a regional nonprofit founded in 1991, which works to provide housing vouchers for those in need. It connects more than 7,500 families to housing at any given time and is also working to expand into education and homelessness prevention programs. Majority of the funding for this type of organizations come from government agencies, in the form of fees for providing the services or direct funding. The remainder comes from corporations and foundations.
The eight type is called Resource Recycler. These nonprofits receive donations from corporations or individuals in the form of goods. They then distribute the goods to needy recipients who cannot obtain them from the market. Business donate goods that will go to waste otherwise (for example, expire) or good with low marginal cost of making. These donated goods account for the majority of the organization’s revenues, but they must also have an additional fund source to cover operating costs. A majority of this type work is focused in agriculture, food, medical, and nutrition programs, often internationally. Food banks are a good example of this type- distributing food to various organizations such as soup kitchens, senior centers, and homeless shelters. Food banks receive goods from retailers, manufacturers, and surplus food from restaurants/hotels. In the United States, part of their funds are from federal and state government programs.
Next time, we will finish this series by introducing the last two financial funding models and discussing potential questions that should be asked when developing a nonprofit! Is there a particular model that stands out to you?
Let us know in the comments!
The story continues…
