I agree, obviously most nonprofits need to have a revenue model, because donations can't sustain you 100%. However I think the general point they were trying to make was that the model followed by many large nonprofits does more to treat the symptoms than solve the problem.

I do a lot of nonprofit work and I've become pretty disillusioned with many large organizations-I feel they tend simply give hand-outs rather than helping communities to become sustainable and self-sufficient and actually addressing the issues. Add to that the costs of overhead and management, etc. and I really feel like the most significant changes are going to come from the small groups motivated by their passion for helping and unburdened by the task of maintaining a large corporate revenue model. The change these groups affect might not be as far-reaching, but think their impact is greater.