The marketisation of charities in England and Wales

Steve Mckay, Domenico Moro, Simon Teasdale, David Clifford

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    38 Citations (Scopus)
    184 Downloads (Pure)

    Abstract

    Much has been written about the reasons for and impact of marketisation on charities, their clients, and wider civil society. A central component of the marketisation thesis is that charities are substituting grants and donations with commercial revenue. However, there is no consensus in the existing literature as to whether the two sources of revenue are substitutes or complementary. This paper shows that between 2003 and 2007 there was a significant increase in the proportion of overall revenue attracted from commercial sources by charities in England and Wales. Using our preferred generalised method of moments estimation model we show that the annual persistence of commercial revenue overtime was 44 %. In particular, a +10 % change in grants and donations was associated with a −3.1 % change in commercial revenue.
    Original languageEnglish
    Pages (from-to)336-354
    Number of pages19
    JournalVoluntas
    Volume26
    Issue number1
    Early online date7 Jan 2014
    DOIs
    Publication statusPublished - Feb 2015

    Keywords

    • third sector
    • charities
    • marketisation
    • revenue
    • revenue mix
    • crowding out
    • models with panel data
    • substitution effect
    • nonprofit

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