When is a Nonprofit Not a Nonprofit?

Last week’s blog led to a reader sending me a series of thoughtful questions (see comments).  The first question, however, generated a swift and blunt reply.

His question asked how I would classify a nonprofit organization “whose only revenue stream is governmental grants.  Are they a ‘non-profit’ or just a ‘quasi-government’ agency…?”  I love easy questions like this.  My answer?  I classify this as a “nonprofit flirting with death!”

Forget the debate on nomenclature and focus on the big picture:  long-term sustainability.  Any nonprofit that is funded Read more