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

Teasdale, Simon and Kerlin, Janelle and Young, Dennis and In Soh, Jung (2013) Oil and water rarely mix: exploring the relative stability of nonprofit revenue mixes over time. Working Paper. University of Birmingham, Birmingham.


URL of Published Version: http://www.tsrc.ac.uk/Research/EconomicandSocialImpact/Stabilityofnonprofitrevenuemixesovertime/tabid/1013/Default.aspx


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.

Type of Work:Monograph (Working Paper)
School/Faculty:Colleges (2008 onwards) > College of Social Sciences
Department:Third Sector Research Centre

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Date:01 June 2013
Series/Collection Name:TSRC Working Paper Series
Keywords:Hybridity, modern portfolio theory, nonprofit, revenue, sustainability.
Subjects:H Social Sciences > H Social Sciences (General)
Related URLs:
Funders:Economic and Social Research Council, Office for Civil Society, Barrow Cadbury Trust
Copyright Holders:Third Sector Research Centre
ID Code:1795

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