Revenue Diversification in Nonprofit Organizations: Does it Lead to Financial Stability?

Carroll, Deborah A.; Stater, Keely Jones

doi:10.1093/jopart/mun025

Cited by 428 publications

(528 citation statements)

References 33 publications

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“…Frumkin and Keating (2011) show that nonprofits with concentrated revenue portfolios experience considerably lower administrative costs. On a related note, much of the existing literature drawing upon portfolio theory assumes there is no substitution effect between commercial and donative revenue (see for example Carroll and Stater, 2009). Of course this is largely appropriate with regard to stock picking by investors.…”

Section: Resultsmentioning

confidence: 99%

“…However, in common with most of the literature their approach is heavily parametric. Carroll and Stater (2009) drew upon the NCCS CORE dataset between 1991 and 2003 to directly model a measure of revenue volatility, based on percentage deviations from trend for each charity. They take a fixed-effects approach, also including lagged endogenous variables (relying on econometric techniques from a decade earlier, which encounter problems of bias described in Bond 2002 andArellano 2003).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Much of the literature highlights the stability benefits of resource diversification (Froelich, 1999;Carroll and Stater, 2009). Additionally a more explicitly normative literature highlights the supposed efficiency benefits of commercialisation (see for example Dees et al, 2001).…”

Section: To What Extent Are Nonprofits Increasingly Adopting Mixed Rementioning

confidence: 99%

“…However, since Hansmann's contribution, some attention has been paid in the literature to the emergence of mixed revenue forms of nonprofit which combine donative and commercial revenue (see for example Billis, 2010), in part as a response to arguments about resource dependency (Froelich, 1999) or the benefits of diversification (Carroll and Stater, 2009) and appeal to multiple stakeholder groups (Young, 2007). It would seem that mixed revenue nonprofits have become sufficiently numerous to now warrant a distinct stream of academic literature.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Oil and Water Rarely Mix: Exploring the Relative Stability of Nonprofit Revenue Mixes Over Time

Teasdale

Kerlin

Young

et al. 2013

Journal of Social Entrepreneurship

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This paper explores whether nonprofits are increasingly adopting mixed revenue strategies, and the sustainability of these strategies over time. We constructed a panel using NCCS (National Centre for Charitable Statistics) data from 1998 and 2007, and divided nonprofits into three groups: commercial, donative and mixed revenue. We found no evidence that nonprofits are increasingly adopting mixed revenue strategies. Mixed revenue strategies appeared less sustainable over time than predominately commercial or predominately donative strategies. Our results suggest that for most nonprofits, relying predominately on either commercial or donative revenue is a more stable equilibrium than attempting to achieve a balanced revenue mix. Exceptions may be those nonprofits, such as arts organisations, where there is a natural alliance between donors and customers.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: To What Extent Are Nonprofits Increasingly Adopting Mixed Rementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Oil and Water Rarely Mix: Exploring the Relative Stability of Nonprofit Revenue Mixes Over Time

Teasdale

Kerlin

Young

et al. 2013

Journal of Social Entrepreneurship

View full text Add to dashboard Cite

show abstract

“…For the HHI index, higher values indicate revenue concentration, and lower numbers signal a more diversified revenue base. Percent Earned Income: A continuous variable indicating proportion of revenue an organization receives from earned income (defined from Carroll and Stater (2009) as gross income from program service revenue plus other investment income). Percent Donative: A continuous variable indicating proportion of revenue an organization receives from donations (defined from Carroll and Stater 2009 as gross contributions plus gross income from special events).…”

Section: Resource MIX and Wise Modelsmentioning

confidence: 99%

Work Integration Social Enterprises in the United States: Operating at the Nexus of Public Policy, Markets, and Community

Cooney

2016

Nonprofit Policy Forum

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Work integration social enterprises (WISEs) in the United States represent a market based approach for workforce development and labor market integration that offer employment and training opportunities as well as bridges to the mainstream labor market. Historically developed to create separate spaces of work for populations considered less able to compete in mainstream labor markets, such as people with physical and developmental disabilities, as this article will show, WISEs have evolved to target other disadvantaged and marginalized communities such as individuals suffering from homelessness, youth disconnected from both school and labor markets, formerly incarcerated individuals seeking reentry into employment, and welfare recipients required to work for benefits or as benefits are timed out. This article traces the historic evolution of the WISE sector. The review highlights the ways in which the organizational model has been adapted in response to shifting social constructions about appropriate level of integration and employment norms for disadvantaged groups as well as the changing nature of jobs in the entry level labor market. Further, this paper illustrates that newer (non-disability related) WISE organizational models have different resource generation strategies compared to the older WISE models, may be more exposed to market forces in their social business niches, and must contend with the increased vulnerabilities faced by workers in an era of welfare safety net erosion.

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Sink or Swim: Social Enterprise as a Panacea for Non‐profit Organisations?

Calvo

Morales

2015

J of Intl Development

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Abstract:The institutional frameworks and contexts that support social enterprises and the growth of hybrid organisations in Sub-Saharan Africa require more concerted examination. Drawing upon a qualitative study, and examined through a framework of Postcolonial theory, this paper contributes to emerging discussions in this area through an investigation of the transformation of non-profit organisations (NPOs) towards the social enterprise model and exploring the impact of hybridity on the management of these organisations in Tanzania. The study suggests that NPOs mimic social enterprise 'best practices' to secure financial resources and integrate their traditional values into the social enterprise model creating tensions resulting from hybridity.

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Revenue Diversification in Nonprofit Organizations: Does it Lead to Financial Stability?

Cited by 428 publications

References 33 publications

Oil and Water Rarely Mix: Exploring the Relative Stability of Nonprofit Revenue Mixes Over Time

Oil and Water Rarely Mix: Exploring the Relative Stability of Nonprofit Revenue Mixes Over Time

Work Integration Social Enterprises in the United States: Operating at the Nexus of Public Policy, Markets, and Community

Sink or Swim: Social Enterprise as a Panacea for Non‐profit Organisations?

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