JOURNAL ARTICLE

Should Your Nonprofit Charge Its Beneficiaries?

  • Published In: Harvard Business Review, 2024, v. 102, n. 1. P. 90 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Bertini, Marco; Izaret, Jean-Manuel; Hutchinson, Richard 3 of 3

Abstract

The article focuses on how nonprofit organizations can enhance their impact and financial sustainability by charging beneficiaries nominal fees for products or services that would otherwise be provided for free. It argues that minimal fees can foster beneficiary ownership, improve engagement, and generate revenue to expand services, as demonstrated by examples like Project Maji’s solar-powered water kiosks in Ghana and Worldreader’s subscription model for educational content. The authors emphasize distinguishing between access and meaningful impact, advocating for pricing strategies tailored to beneficiaries’ varying ability to pay and for shared accountability in achieving outcomes. They also highlight the importance of educating beneficiaries about the value of services and using flexible, performance-based payment models to balance affordability with operational sustainability.

Additional Information

  • Source:Harvard Business Review. 2024/01, Vol. 102, Issue 1, p90
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2024
  • ISSN:0017-8012
  • Accession Number:174005305
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