Oil and water rarely mix: exploring the relative stability of Nonprofit revenue mixes over time

Simon Teasdale, Janelle Kerlin, Dennis Young, Jung In Soh

    Research output: Contribution to journalArticle

    Abstract

    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 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 (DR) is a more stable equilibrium than attempting to achieve a balanced revenue mix. Exceptions may be those nonprofits, such as arts organizations, where there is a natural alliance between donors and customers.
    Original languageEnglish
    Pages (from-to)69-87
    Number of pages19
    JournalJournal of Social Entrepreneurship
    Volume4
    Issue number1
    Early online date21 Mar 2013
    DOIs
    Publication statusPublished - 2013

    Keywords

    • hybridity
    • modern portfolio theory
    • nonprofit
    • revenue mix
    • sustainability
    • social enterprise
    • social entrepreneurship

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