There is a well-documented tension in many nonprofits – particularly those seeking government contracts or working in areas that compete with the private sector – between the institutional logics of business-market and nonprofit-mission. This paper presents a case study of a century old Swedish nonprofit. It suggests that in the presence of competing hybrid logics, organizational actors respond according to the logic to which they are drawn ideologically. Logic salience as a concept is proposed and its three categories are identified to delineate which type and degree of salience individuals hold towards market logic, mission logic, or towards both. The findings indicate that logic salience can enable or constrain any of the hybrid goals and can provide some explanation as to how or why certain organizational responses that do not represent the collective come about as organizations are wedged between competing logics. Considering the increasing role of nonprofits in the delivery of public services, relevance to research and policy is also highlighted.

Purpose In the context of the general funding scarcity in the nonprofit sector, this paper aims to inquire into the governance challenges facing nonprofit aid organizations in a donor–recipient partner relationship. In particular, the authors focus on the challenges of commercial diversification as the espoused alternative to aid-funding. Design/methodology/approach A qualitative design was deployed to collect and analyze data collected from interviews conducted in three case organizations in an aid development partnership. Findings The various responses at the organizational level are presented as well as analyses of the inter-organizational aspects. All organizations have responded strategically to reductions in funding from state/government and other aid sources by attempting to diversify commercially yet at the same time maintain dependency on aid-funding. This entailed tensions between the logics of the market and mission. These tensions are manifest not only within the organizations but also in the relations between them. Originality/value Analyses of the twin-track strategies have highlighted that maintaining aid dependency and resource diversification have different and conflicting relational prerequisites and require diverse and conflicting internal capabilities. The paper develops a conceptual framework for capturing the governance challenges of this strategic dilemma and concludes that the choices of pursuing continued aid-funding and seeking new commercial opportunities are invariably mutually exclusive.