Assume a website that provides a free service to a certain community (disability related). The site is run by a charitable foundation and there's no charge for the users of the site. There are 2 full time people who create and manage site content.
How might you arrive at a valuation for the site for purposes of a sale?
ps. There's no "valuation" tag??
There are really two common ways to create a valuation:
However, non profits aren't really supposed to generate revenue as their goal, thus the second model is out, and I don't know of many non profits that have been sold, recently, so I think you'd really be looking at one of a few things:
Ultimately, the real asset here seems to be the user base.
You might also be able to make a point about ad real estate, but I imagine you'd already know how valuable that is based on the amount of traffic.
a website that provides a free service to a certain community (disability related). [...] run by a charitable foundation [...] there's no charge for the users of the site. [...] How might you arrive at a valuation for the site for purposes of a sale?Ehmn, "0"? I don't get it -- if the site
.. then what do you plan to sell? And moreover, if the owner is a non-profit foundation, why should it even "sell" at all?
The infrastructure code could be worth the billable hours it would take to re-create it from scratch. I mean, the basic code that makes up the website (without any data) could perhaps be sold to someone looking to make a similar site. But on the other hand, perhaps you couldn't even sell the code, because of "not invented here" syndrome.
I would say the website is worth the replacement cost for the code, maybe.