Our revenue model that has multiple streams. We believe that sustainability means not putting all your eggs in one basket and not relying on foundational dollars as our primary life support. Foundational support is an important first step and we are appreciative of the generosity of the Knight Foundation and their belief in us and our mission. It is our intention to prove their faith in us by growing into a self-sustaining organization that looks to foundations for the occasional support, not the constant crutch.
Here is some more information about each of our revenue streams:
Let’s start with the smallest of the streams: events. Events are rarely large money makers and we don’t intend on them being so. However, we do hope to make some money on them.
While we expect sponsored projects to be our second smallest revenue stream, we believe that they can cover the operational costs of our project and Hack Nights.
All of our projects go through an intake process that includes signing an SVE (What is an SVE? Spell it out and provide a brief explanation.) with Code for Charlotte and the affiliated City of Charlotte department or community organization.
Code for Charlotte collects $500 upon the signing of each SVE. This is a buy-in fee that ensures that our partners are as dedicated to the software development process as we are. These funds are used to sustain Hack Nights where all the work occurs. You can learn more about Paid Projects here.
Fundraising is an important piece of our sustainability plan. Fundraising not only generates revenue, but it drives support from our members as well (not sure exactly what this mean. Can you give me an example?). Peer-to-peer and membership drive fundraising account for the majority of our efforts that we currently practice. You can learn more about them here.
While many non-profits have traditionally relied on foundation grants for their main source of income, we believe that they have an expiration date. Foundations typically only want to fund operational costs for four to five years. We want to stay ahead of that curve and to only look to foundations for project specific support.
We believe in economic diversity, just as strongly as we believe in tech diversity. Charlotte is ready and ripe with opportunity for a new tech industry and we want believe we can not only grow it but bring it here with a Civic Tech Incubator that will provide economic growth for the city and revenue generation for Code for Charlotte. You can learn more about the Incubator here.
Code for Charlotte as a utility is our revolutionary idea. This will be our primary source of revenue. Here’s how it works: Code for Charlotte will wholly own a for-profit company. The for-profit arm will bid on Requests for Proposals (RFPs) from the City of Charlotte and will contract Brigade members to fulfill those bids. The for-profits’ profits will then feed into Code for Charlotte’s non-profit and pay overhead and programming fees, allowing the non-profit to have a true revenue source. You can learn more about The Utility here.