VolunteerMatch.org: balancing mission and earned‐revenue potential

Abstract

PurposeThis case investigates how a nonprofit can analyze its earned revenue potential. What changes would be required for the organization's current business units to start making a positive financial contribution? What other opportunities to expand its earned‐income efforts exist, and how should they be prioritized? What would it take to implement the new ventures, and how could the nonprofit guard against undertaking initiatives that would subtract more from the organization – in dollars and staff time – than they could possibly add?Design/methodology/approachA team of consultants from Bridgespan worked with VolunteerMatch, the largest web‐based volunteer‐matching service in the country, to study how to make its earned revenue ventures generate income for the organization and support its mission.FindingsVolunteerMatch's work on earned income helped it to move forward with its financial goals, and also to strengthen its social mission.Research limitations/implicationsVolunteerMatch is a small, talent rich nonprofit with a staff that is comfortable innovating internet‐based products and services. Expanding the study to include a variety of nonprofits would provide a better indication of the viability of an earned income strategy in this sector.Practical implicationsVolunteerMatch now derives 38 percent of its revenue from its earned income activities, decreasing its reliance on contributions.Originality/valueFew detailed studies exist of the development of earned income operations in nonprofits. This one serves as a guide to best practices for organizations considering this strategy.