Could your nonprofit start a business? More are doing it than you think.



More Nonprofits are running businesses to generate revenue. Here's what they look like.

Read time: 3-4 minutes

Here’s a misconception I hear all the time: “Nonprofits have to rely exclusively on grants and donations for funding.”

But over the past few years, more and more nonprofits have been integrating new ways of generating revenue into their fundraising. And a lot of them… are starting businesses. 😮

Wait, what? Can they do that?!
There are nuances and rules... but YEP.

To be fair – you’ve probably heard the various names this practice goes by: Earned income. Social entrepreneurship. In some cases: Program fees. But whatever we want to call it.... the fact of the matter is that when it works, it can create a more stable source of funding while still advancing your impact.

In this week’s Changemaker Mondays ☀️☕🌍, I’m sharing three examples of nonprofits tapping into this revenue model to support their mission so you can see what these examples actually look like in action.

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Example 1: A Café and Bakery Funding Job Training

Imagine walking into a café where every purchase helps someone rebuild their life.

That’s exactly how Homeboy Industries in Los Angeles works (Have you heard of them?). The organization supports people who were formerly gang-involved or incarcerated by providing job training, therapy, education, and employment opportunities.

And the cool part – they fund this work is through several businesses they own and operate. Everything from a café and bakery, catering services, embroidery, a grocery store, a farmers market, and even dog grooming. 🐶

When customers buy products and services from these businesses, the revenue goes back into funding the organization’s programs. But the businesses also serve another purpose – They provide real work experience and paid job training for the people they serve.

That way, participants build practical skills, gain confidence, and prepare for long-term employment – and ensure the businesses aren’t just generating revenue, but also directly advancing the nonprofit’s mission.

💡 Try This: Reflect on if there are realistic ways to further support those you serve by uplifting them in revenue-generating activities.

Example 2: A Bike Shop Supporting Youth Programs

Here’s another spin on this model: a nonprofit bike shop that helps fund youth programs. (See what I did there? 🚲)

Community Cycling Center in Portland, Oregon focuses on making cycling more accessible… all while supporting youth development and community mobility.

Here’s how it works: They operate a full-service bike shop where customers can buy bikes, parts, and gear or bring their bikes in for repairs. But THEN… the revenue generated from the shop supports the nonprofit’s programs, including youth bike camps, safety education, mechanic apprenticeships, and community mobility initiatives for families.

So ultimately, the bike shop provides a reliable source of earned income while reinforcing the organization’s mission of empowering young people and expanding access to transportation.

💡 Try this: Think about whether your nonprofit already has some kind of product, service, or community resource that people in your community might be willing to pay for.



Example 3: Events and Workshops Funding Storytelling Programs

It’s true - Not every nonprofit business looks like a café or a retail shop (nor should it). Many organizations generate revenue by sharing their knowledge, programs, or creative work with a wider audience.

One example is The Moth, a nonprofit dedicated to the art of storytelling. Their mission is to help people share personal stories that build empathy, connection, and confidence.

You might have even heard of their live storytelling events, where people take the stage and share true personal stories in front of an audience! These events are ticketed and held in cities across the country.

What you might NOT have heard is how the organization also generates revenue through storytelling workshops, books, and partnerships with schools and organizations. The income from these activities in turn helps support The Moth’s community programs, including youth storytelling initiatives and educational workshops.

Once again – we see how the same expertise that advances their mission also becomes a sustainable source of funding, bringing in revenue from people who are excited to learn from them.

💡 Try this: Think about whether your nonprofit has some expertise, training, or educational programs that others might be willing to pay to participate in.


📽️ Now, these are just a few examples - but I share more in this full video. Be sure to check it out for more inspiration!

Try it this week 🚀

Take 10 minutes this week to ask yourself one question: Does this model make sense for your mission? Jot down a few ideas that come to mind. You never know what opportunities are hiding in plain sight.

Hit Reply 💬

Have you ever considered running a business connected to your nonprofit’s mission?

💲

Funding Opportunities

  • Varying Deadlines: The KeyBank Foundation Community Grants ($10,000-$25,000) and Sponsorships ($500-$5,000) support programs that help low- to moderate-income communities thrive, with a focus on economic mobility, education, and workforce development. Grants are made to organizations where their offices are located. See full eligibility criteria on their site.
  • Due by May 31: Kickstarting for Good is an 18-week incubation program and seed-funding grant opportunity for impact-entrepreneurs and nonprofits transforming the food system with more than $350,000 in grants and seed-funding awarded to program participants.
  • Due by June 1: ACT's Giving Program provides funds for qualified nonprofits across the United States for programs and projects covering Education and Workforce, Human and Social Needs, and Community Betterment topics. Grants range $500-$5,000.

📅

Events & Programs


Keep an eye out for future workshops and events open to the public! In the mean time, need an event speaker or workshop trainer? Learn more about my workshops and other services.

Enjoy this week's newsletter? You might find this video helpful, too.

3 more ways I can help you

  1. I have lots of free content for you! Check out my library of 400+ educational videos on nonprofits, social entrepreneurship, fundraising, and more on my YouTube channel. If you like what I'm trying to do, help me reach more people like you by subscribing to the channel and sharing it with a changemaker friend! 😁
  2. Need extra support to build or grow a nonprofit or social enterprise? Check out my Changemaker Accelerator membership or my Zero to $100,000 Fundraising Starter Toolkit.
  3. Need a speaker or training workshop for your social impact event? I'm currently booking 2026-2027 speaking engagements -- check out my speaking and workshop opportunities to learn how I can help you make your event inspiring and actionable!

Hey, Changemaker!

I'm Amber, writer of the Changemaker Mondays newsletter! I'm a nonprofit founder, speaker, and social entrepreneur on a mission to equip you with the tools you need to create positive change where ever you live -- whether you're starting a nonprofit or socially-conscious business, looking for a social impact job, or leading a volunteer project in your city. Don't hesitate to connect (socials below), or reply to this email if you ever have any feedback on how we can make Changemaker Mondays the best newsletter for supporting changemakers in the world!

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Amber Melanie Smith

I am on a mission to equip nonprofit and social impact changemakers with the tools and resources to grow their impacts. Join me and over 80,000 changemakers on my social impact-focused YouTube channel at https://www.youtube.com/ambermelaniesmith!

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