Charging the public for social services
Are charities that try charging for services putting themselves in danger of losing other important funding from the government or foundations? How will this affect the definition of 'nonprofit'? This at least creates a need for nonprofit managers and boards to fully educate themselves about mixing non and for-profit, and keep their organization as transparent as possible.
-- Lisa Shorten,
Volunteer Coordinator
Hope Mission
Charging the public
for services is not the best way to create financial sustainability, as that
would require charging market rates when many recipients of charity services
would be unable to afford them. And many programs, such as promoting
healthy lifestyles, are addressed to the public in general. There is no one
to pay the fee. Charities can only offer affordable services if
individuals, corporations, foundations, and government contribute what they
should.
Financial sustainability requires diverse sources of revenue, stable funding
for core operations, and commitment to community among those who can support
our charities. No one can have financial stability from fees alone, or when
funding a charity mostly from time-limited project funding, or when
dependent on the whims of a single revenue source.
However, that does not mean I believe all charity services should be free.
People receiving expensive services that are not funded by government should
pay some amount, if they can, that recognizes the benefits being received.
Programs such as training courses need participants who will show up on time
and continue throughout the sessions; an affordable fee improves commitment.
Charities that charge a fee should have a policy on waiving the fee, and be
doing enough fundraising to ensure that they can afford to waive the fee in
accordance with policy.
-- Jane Garthson, Mills Garthson & Associates
Toronto, Canada
E-mail us your thoughts today at help@charityvillage.com.
