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

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

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.

Suggested Citation

  • Simon Teasdale & Janelle Kerlin & Dennis Young & Jung In Soh, 2013. "Oil and Water Rarely Mix: Exploring the Relative Stability of Nonprofit Revenue Mixes Over Time," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 4(1), pages 69-87, March.
    • Handle: RePEc:taf:jsocen:v:4:y:2013:i:1:p:69-87
    DOI: 10.1080/19420676.2012.762799
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    References listed on IDEAS

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    1. Stephen R. Bond, 2002. "Dynamic panel data models: a guide to micro data methods and practice," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 141-162, August.
    2. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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    Cited by:

    1. Cooney Kate, 2016. "Work Integration Social Enterprises in the United States: Operating at the Nexus of Public Policy, Markets, and Community," Nonprofit Policy Forum, De Gruyter, vol. 7(4), pages 435-460, December.
    2. Felix Arrieta & Ainhoa Izaguirre & Martín Zuñiga, 2020. "New Spaces In The Public Arena: Learnings From Gipuzkoa," Public administration issues, Higher School of Economics, issue 6, pages 118-132.
    3. Jonathan Oxley, 2021. "Does Additional Mandatory Reporting Alter Charity or Donor Behavior?---Examining the 2006 Pension Protection Act," Working Papers wp2021_01_02, Department of Economics, Florida State University.
    4. Kunal Y. Sevak & LaKami Baker, 2022. "Need‐resource indicators and nonprofit human services organization density," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 129-160, March.
    5. Elizabeth A. M. Searing, 2023. "Beyond Donations: Isomorphism and Revenue Mix in Nonprofit Start-Ups," Administrative Sciences, MDPI, vol. 13(3), pages 1-19, March.
    6. Oxley, Jonathan, 2022. "Does additional mandatory reporting alter charity or donor behavior? Examining the 2006 Pension Protection Act," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 738-751.

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