Ed Spinella Quoted in the Hartford Business Journal on How Nonprofits are Diversifying Their Revenue Streams
December 7, 2022
Tax Exempt Organizations Chair Ed Spinella was recently quoted in a Hartford Business Journal article on how nonprofits are facing increasing pressure to diversify their revenue streams beyond just fundraising in the Greater Hartford area and Connecticut.
The article looks at the current state of local philanthropy, looking at the impact of the pandemic on fundraising and inflation as factors that have put more pressure on nonprofits to look for new avenues to raise money.
The article notes that charities around the state are feeling the pinch. Almost one in five (17%) of the state’s nonprofits is struggling financially, according to a 2022 report by the CT Nonprofit Alliance.
Ed noted that as a result, nonprofits are pursuing an array of strategies to sustain their vitality and counter funding woes, including being more entrepreneurial and forming new revenue-generating ventures to sell goods and services often aligned with their missions and to deepen their impact.
“At the end of the day, there’s only so many philanthropic dollars out there, so many tax-exempt organizations are looking at what things they can do to supplement their revenues,” said Ed. He stressed that “none of this is taboo but organizations need to know how to responsibly embrace new revenue-generating activities and business-minded practices.”