Why might some sources of revenue be undesirable for a nonprofit organization?
What will be an ideal response?
• Mission distortion could be caused by factors external to the organization such as when the donor attaches conditions (strings) forcing it in a direction it would not want
• Mission distortion would be caused by factors internal to the organization; such as chasing grant money in order to keep staff would deflect attention from its core mission.
• The revenue source costs more than it brings in due to factors external to the organization such as when a fundraising celebrity concert costs so much that it was not worth the effort
• The revenue source costs more than is brought in due to factors internal to the organization, such as in the case of selling products unrelated to the core function that lose money.
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