(I run a 501(c)3 non-profit startup) The Bay Citizen is taking in nearly all of its revenue from one source. As a 501(c)3 organization, you can't do that for

(I run a 501(c)3 non-profit startup) The Bay Citizen is taking in nearly all of its revenue from one source. As a 501(c)3 organization, you can't do that for very long or you'll end up being classified as a Private Foundation (and lose the ability to take in tax-deductible donations). In order to survive for more than just a few years, Bay Citizen will need to diversify their revenue stream. So a shift toward membership-based fundraising doesn't mean they are hard-up on cash or think their burn rate is too high -- this is just something they have to start doing. There's a bunch of information here if you're supremely curious: http://www.sharinglaw.net/npo/PublicSupportTest.htm http://www.sharinglaw.net/npo/PublicSupportTest.htm