---
name: nonprofit-revenue-mix-analyzer
description: "Analyzes a nonprofit's revenue streams by source, size, reliability, and mission alignment; benchmarks the mix against sector norms; flags concentration risk with risk ratings; and delivers ranked diversification opportunities with a 12-month action plan. Use when assessing funding health, preparing a board or strategic planning discussion, diagnosing over-reliance on a single funder, or building a revenue diversification strategy."
argument-hint: "[org-type] [revenue-breakdown]"
allowed-tools: ["Read"]
---

# Nonprofit Revenue Mix Analyzer

## Purpose
Produce a clear-eyed assessment of a nonprofit's funding health — how much revenue comes from each source, how reliable that revenue is, how well it aligns with mission, and where dangerous concentration lives — then deliver ranked diversification moves the leadership can act on. Turns a fuzzy sense of "we're too dependent on that one grant" into a documented, benchmarked, board-ready analysis.

## When to Use
Invoke this skill when the user asks to:
- Analyze or assess their nonprofit's current revenue mix or funding health
- Diagnose over-reliance on a single funder, grant, or event
- Prepare a funding-health section for a board meeting or strategic plan
- Benchmark their revenue composition against similar organizations
- Build a revenue diversification strategy or roadmap
- Evaluate whether their funding is sustainable heading into next fiscal year

## Inputs Required
Before starting, collect:
- **Organization type & size**: Program area (e.g., human services, arts, environment) and annual operating budget
- **Revenue breakdown**: Each source with dollar amount or % of total — individual giving, major gifts, foundation grants, government grants/contracts, corporate, earned/fees, events, membership, endowment draw, in-kind
- **Largest funders**: Top 3–5 sources by dollar amount, and what % of total budget each represents
- **Restriction profile**: Roughly what share of revenue is restricted vs. unrestricted
- **Renewal outlook**: Which major sources are multi-year vs. one-time, and any known at-risk or expiring commitments
- **Time horizon**: Number of years of revenue data available (single year vs. 3-year trend)
- **Strategic priorities**: What leadership most wants — stability, growth, or reduced dependence on a specific source

If restriction profile or renewal outlook is missing, note the assumption and proceed using conservative estimates.

## Instructions

### Step 1: Map and Categorize Every Revenue Stream
Build a normalized table of all revenue sources. For each stream capture:
- **Amount** and **% of total budget**
- **Category type**: Contributed (individual, major gift, foundation, government, corporate) vs. Earned (fees, contracts, events, membership) vs. Investment (endowment draw)
- **Restriction status**: Restricted / Unrestricted
Reconcile the percentages to 100% before analyzing. If numbers don't total, flag the gap explicitly.

### Step 2: Score Each Stream on Four Dimensions
Rate every stream on a 1–5 scale (5 = strongest) across:
- **Size**: Share of total budget
- **Reliability**: How predictable/renewable — multi-year committed (5) → one-time or event-dependent (1). Factor renewal outlook and volatility.
- **Mission alignment**: How well the funding advances core mission without mission drift — unrestricted flexible funding and program-aligned grants score high; funding requiring off-mission activity scores low
- **Cost to raise**: Efficiency of the source — recurring individual giving and multi-year grants are cheap to sustain; galas and one-off grants are expensive per dollar raised
Present as a scoring table with a one-line rationale per stream.

### Step 3: Diagnose Concentration Risk
Apply concentration tests and assign a risk rating (Low / Moderate / High / Critical) to each:
- **Single-funder test**: Any single source above 25% of budget = elevated risk; above 40% = Critical
- **Category test**: Any single category (e.g., government contracts) above 50% of budget = elevated risk
- **Top-3 test**: If top 3 sources exceed 60% of budget, flag donor concentration
- **Restriction test**: If unrestricted revenue is below 25% of budget, flag flexibility risk
- **Renewal cliff test**: Identify any expiring or non-renewing source worth more than 10% of budget as a near-term cliff
For each triggered test, state the specific number, the threshold it breached, and the consequence if that source disappeared.

### Step 4: Benchmark Against Sector Norms
Compare the mix to healthy composition ranges for the org's type and size. Use these reference ranges as anchors (adjust for program area):
- **Individual giving**: Healthy nonprofits typically draw 30–50% from individuals; strong unrestricted foundation
- **Foundation grants**: 10–30% — valuable but rarely renewable indefinitely
- **Government**: 0–40% — can be large but often restricted, reimbursement-based, and politically exposed
- **Earned revenue**: 0–40% depending on model — most reliable when mission-aligned
- **Events**: Best kept under 15% of budget given high cost-to-raise
- **Endowment draw**: Sustainable at roughly 4–5% of endowment value
State where the organization sits above, within, or below each range and what that implies.

### Step 5: Identify and Rank Diversification Opportunities
Generate 5–7 specific opportunities to reduce risk and strengthen the mix. Rank by expected impact and feasibility. For each:
- **Opportunity**: What to build or grow (e.g., launch a monthly recurring-giving program, pursue a second government contract, add earned-revenue fee-for-service line)
- **Why it fits this org**: Tied to their mission, existing assets, and current gaps
- **Risk reduced**: Which concentration test it addresses
- **Effort & time-to-revenue**: Low/Medium/High effort; near-term (<6 mo) / mid-term (6–18 mo) / long-term (18+ mo)
- **Realistic target**: A dollar or % goal for the next 12 months

### Step 6: Build the 12-Month Action Plan
Sequence the top 3–4 opportunities into quarterly moves:
- **Q1**: Foundational / lowest-effort risk reduction
- **Q2–Q3**: Build the highest-impact new stream
- **Q4**: Measure, and shore up any renewal cliffs identified in Step 3
Include one leading metric to watch per quarter.

## Output Format
- **Structure**: Revenue map table → four-dimension scoring table → concentration risk ratings → sector benchmark comparison → ranked diversification opportunities → 12-month action plan
- **Length**: 1,000–1,400 words
- **Format**: Tables for the revenue map, scoring, and risk ratings; ranked bullets for opportunities; quarterly list for the action plan
- **Sections**: Revenue Map → Stream Scoring → Concentration Risk → Sector Benchmark → Diversification Opportunities → 12-Month Action Plan → Bottom Line
- **Tone**: Development director advising a board — candid, numbers-forward, non-alarmist but willing to name a Critical risk plainly

## Quality Checklist
Before delivering output, verify:
- [ ] Revenue percentages reconcile to 100% (or the gap is flagged explicitly)
- [ ] Every stream is scored on all four dimensions (Size, Reliability, Mission Alignment, Cost to Raise)
- [ ] Each concentration risk rating cites the specific number and threshold it breached
- [ ] Benchmark comparison states above / within / below for each relevant category
- [ ] Diversification opportunities are ranked and include a realistic 12-month target, not open-ended suggestions
- [ ] The action plan sequences moves by quarter with a leading metric for each

## Notes
- The single most common finding is over-reliance on one grant or one annual event — name it directly and quantify the fallout if it vanished.
- Unrestricted revenue is the metric boards most often overlook; a well-funded org with 15% unrestricted revenue is more fragile than a smaller org with 40% unrestricted.
- Cost-to-raise matters as much as amount raised — a $200K gala netting $60K after expenses is a diversification liability, not an asset.
- If only single-year data is available, state that trend-based reliability scoring is limited and recommend gathering three years of data for the next analysis.

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## How to use this skill

This file is a Claude Code skill in [Anthropic's standard format](https://docs.anthropic.com/en/docs/claude-code/skills) — markdown with YAML frontmatter at the top.

**Installing in Claude Code:**
- `~/.claude/skills/<folder-name>/SKILL.md` — auto-loads in every session anywhere on your machine (recommended for skills you'll use across multiple projects)
- `<your-project>/.claude/skills/<folder-name>/SKILL.md` — auto-loads only when working in that project (recommended for project-specific skills)

Restart Claude Code or open a new session to register.

**Using in Claude.ai, ChatGPT, Gemini, or other AI tools:**

1. Drag this file into a new chat, or copy and paste its contents
2. Send your task or request as your next message — the AI will apply the skill where it fits

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