A charity can easily become overly dependent on certain streams of donor income. For example, a healthcare agency with a strong focus on medical research may rely heavily on donations from pharmaceutical companies; a human-services agency may become heavily dependent on government grants; or a small, community charity may receive half of its annual revenue from its black-tie gala.

Discussion board Question

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This is for a Discussion board and not a paper. But it does need references.

A charity can easily become overly dependent on certain streams of donor income. For example, a healthcare agency with a strong focus on medical research may rely heavily on donations from pharmaceutical companies; a human-services agency may become heavily dependent on government grants; or a small, community charity may receive half of its annual revenue from its black-tie gala.

Each of these charities may be at significant financial risk if its primary funding sources begin to diminish. Predict how these charities might prepare themselves to create a more diversified funding stream. Identify some possible funding scenarios.

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