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5 days ago
Nonprofit funding is more than just donations. Our organizations can also earn money.
But there is a misconception that it’s wrong for nonprofits to charge for their services.
Bringing in revenue from a variety of sources, including earned income from products and services, creates more stability for nonprofits.
Fact:
But the misunderstanding can hinder our ability to be more financially stable.
Nonprofits shouldn’t earn money. It’s a bad sign if a nonprofit charges for its services.
Myth:
What does earned income mean for nonprofits?
Earned income is revenue generated by selling goods, collecting fees for services, or other work.
Selling merchandise or thrift store items
Renting out event venues or meeting spaces
Selling tickets to performances or programs
Membership dues to get special benefits
Charging for classes or certifications
This includes things such as:
Let’s look at the data.
We love to talk about the value of donations, but over 70% of nonprofit revenue comes from earned income.
Yes, the data is skewed.
This data is slightly skewed by hospitals and universities that rely heavily on earned income. But even when we pull that data out, earned revenue still plays a big role in funding nonprofit work.
Now, let’s go deeper.
Very few nonprofits rely on a single revenue source, and over 50% of all nonprofits are earning some income.
Why does this matter?
Nonprofits may hesitate to charge reasonable fees for their crucial services because they are concerned about public perception.
And this makes it harder for nonprofits to be more financially stable in the long term.
Change the narrative.
Your nonprofit can help debunk this myth.
Explain why you charge fees, have memberships, or sell products, and show how it supports your work.
Let misunderstandings dictate your revenue streams.
Do this.
Don’t do this.
Be clear about where your nonprofit gets its funding.
Share financial data, like Forms 990, on your website and keep your Candid profile up to date.
Earned income isn't compromising your mission. It's how you protect it and make sure your impact keeps growing.
Learn more via the link in our bio.
References
Diversifying revenue sources: Where do nonprofits find funding? Stephanie Wormington, Candid insights, April 2026.
U.S. Social Sector Dashboard, Candid, September 2024.
Six things you may not know about the nonprofit sector, Guy Mika, Candid insights, March 2022.
Demystifying nonprofit earned income: Generating revenue to drive mission, Kyoko Uchida, Candid insights, July 2026.
1
Posted On: July 21st 2026, 12:01 pm
Have you ever been told that nonprofits shouldn't (or can't) earn money?

Over 70% of nonprofit revenue comes from earned income. But many people are surprised our organizations can charge for products and services.

We're digging into this myth and looking at the important role that earned income plays in nonprofits fulfilling their missions.

Learn more via the link in bio.
Comments (1)
grindforlifeorg 5 days ago

grindforlifeorg

💪🛹❤️

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