The Social Entrepreneurship Spectrum: Nonprofits With Earned Income

A 501(c)(3) nonprofit can still generate earned income. And plenty do. The National Center for Charitable Statistics estimates that nearly 70 percent of the $1.4 trillion generated by nonprofits in 2008 came from the sale of goods and services.

Generating income frees organizations from total dependence on philanthropic dollars. At the very least, the income is a safety net; it also means more money to invest in the mission. Unlike many grants, earned income is unrestricted and can be used however the organization chooses.