In this January 2026 report, Hilda Polanco and Sarah Walker evaluate and analyze five types of financial structures for nonprofits based on their primary type and source of funds.
While a few nonprofits rely exclusively on a single type of funding, most have one predominant revenue stream that largely drives their characteristics for success. We see five basic categories of business models among nonprofits, which for a given nonprofit should be analyzed in order of the proportionate ratio of dollars in play:
- Individual donation funded
- Foundation funded
- Government funded
- Fee-based
- Membership funded