Changes for 15 years in Revenue Structure in Nonprofit Organizations: Classification Based on Financial Data and the Characteristics

Abstract

There is no consensus about which business and revenue structures are suitable for nonprofit organizations to ensure financial stability. This paper clarifies the revenue structures and the changes in nonprofit organizations by analyzing their revenues from several perspectives. Namely, we noted three segmentations of their revenues: from 5M yen to 10M, from 10M to 20M, and from 20M to 30M, and then we scrutinized the financial statements for the fiscal year of 2003/2006/2011/2018 and the annual reports for the fiscal year of 2018 in nonprofit organizations in Kobe City. First, we confirmed that the total revenue increased significantly in these terms, and the primary factor was an enlargement of the business income. Second, we discovered that the nonprofit organizations with the revenue from 5M to 30M have four types of classification such as "business-income-type," "diversification-type," "donation-type" and "grant-type" which vary in their revenue structures. Third, we observed that the nonprofit organizations earning an income from 5M to 10M have a variety of revenue structures while the diversity is gradually losing as their revenues expand.