# Sales
> *Sales* involves designing, deriving, and capturing inbound revenue from goods, services, or access.
In any business – for-profit or nonprofit – *sales* refer to the exchange of a product, commodity, service, or delivery for money. To complete a sale, [according to Investopedia](https://www.investopedia.com/terms/s/sale.asp):
> …both the buyer and the seller must agree to the specific terms of the transaction. These terms can include the price of the good to be sold, the quantity of the good, the method of delivery, and time of delivery.
If one party transfers a good or service to another without receiving compensation in return, the transaction is more likely to be treated as a [[Gifts & Grants|gift or donation]].
Nonprofit arts organizations are driven by mission and supported by [[Gifts & Grants]], but most of them *also* receive earned income from sales. Earned income can result from ticket sales, events, access or gate fees, sales of art objects or other tangible goods, rentals, royalties, licensing, production services, food services, or a wide array of other transactions.
> Read [Field Notes related to the Sales function](https://notes.artsmanaged.org/t/sales).
If a nonprofit earns income from goods or services that are “not substantially related” to their stated mission (for example, earned income from an on-site coffee shop in a performance venue), such earnings can be taxable as [Unrelated Business Income](https://www.irs.gov/charities-non-profits/unrelated-business-income-defined).
Nonprofit arts organizations have a wide array of income sources and proportions, based on their size, artistic discipline, location, and other factors. But accross ALL nonprofit arts organizations in the United States, the average income mix is approximately:
- 60 % earned income
- 30% [[Gifts & Grants]] from individuals, foundations, and corporations
- 10% government funding
Much of the language, strategy, and tactics of selling comes from the commercial world, and can often feel contrary to mission-focused enterprise. But effective, reliable, and creative approaches to earned income can be invaluable to a nonprofit arts organization's success.
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## Tags (click to view related pages)
#functions #functions/sales #seedling