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What Does It Mean to SCALE Your Nonprofit?
2 min to read ✭ Learn what it means to scale your nonprofit and how you can scale your organization’s profit and impact.
What It Means to Scale
When talking about scaling your nonprofit, we are referring to scaling impact and revenue. You want to create nonlinear outcomes of growth. Let’s break it down.
Scale is profit over time. This graph shows a linear growth pattern with profit increasing over time, but in order to scale, your nonprofit needs to generate more profit in less time. How do you do that?
How to Generate Profit
Profit is a function of revenue over cost. To increase profit, you must work to increase revenue and decrease costs. Improving revenue can be done by increasing the average transaction size, increasing the average donor lifetime value or both! Take a look at the different systems you have in place to see what is getting the best results and how much those each of those results is costing you. By optimizing your systems, you can also decrease the cost to acquire donors. This creates a gap which reflects a larger profit margin.
Your company can then use that additional profit to reinvest, which creates a nonlinear outcome of growth. That is an example of scaling profit online and scaling impact, something your organization can do by staying up-to-date with our latest nonprofit digital marketing insights and implementing them in your own organization.