What’s Your Actual Business Model?
nonprofit management tips

When creating a business model, it is essential to have transparency as a key component in order to build trust with donors.

    During a session at the AICPA Not-For-Profit Industry Conference in Washington D.C., Arun Sardana, senior vice president of investments and senior institutional consultant at UBS Institutional Consulting Group, gave a talk “Business Model Canvas: Creating Collaborative and Transparent Business Models.” Some of Sardana’s key points in this talk were:

  • Create a list of stakeholders you are serving and further address what sets your organization apart from alternative what makes your prefer your organization.
  • Discover what intervention is most effective for your organization’s segment. In-person communication is high-touch while communication over the web or on the telephone can reach a higher volume. Find the most suited type of intervention for your segment.
  • Address your organization’s revenue and surplus. Be upfront with your organization’s plans for investments with surplus revenue generated.
  • Establish what activities are linked to your value proposition. Is your organization primarily product or service driven? Drive these key activities to surpass competitors.
  • Review the cost structure of your organization; how do key activities drive revenue?

Creating a business model that allows for collaboration in-house and transparency to outside sources establishes trust with key stakeholders in the organization in addition to fueling the value proposition to keep donors involved and draw in new potential donors.