You have been asked to provide an overview of revenue diversification within the nonprofit sector for several new members of the nonprofit board that you chair. Based on the Carroll and Stater (2009) journal article respond to the following questions.
- What is an optimal portfolio? What goals does it theoretically achieve?
- Identify several predictors of program longevity and describe how they are applied to a nonprofit’s survivability?
- Why is revenue diversification for nonprofits considered controversial?
- What are the implication a nonprofit should consider if adopting revenue diversification as a financial management strategy?
- What influence does diversification have over the unstable revenue structures for nonprofit organizations?