Multidimensional Approaches to Nonprofit Revenue-Generation Strategies and Outcomes: Organization, Community, and Institution

Abstract

Among all types of resources, revenue stands out as one of the most crucial assets for nonprofit organizations to fulfill their distinctive missions, sustain their operations, and ensure their survival and long-term viability. Given the pivotal role of revenue in lifecycle of organizations, how do nonprofits enhance their performance in acquiring it? What factors influence the outcomes of revenue generation for nonprofits? This dissertation investigates how various attributes constituting nonprofits’ resource environment – including organizational, community, institutional characteristics - influence revenues strategies and outcomes, employing a range of theoretical frameworks and empirical evidence. Firstly, this study examines the effects of management characteristics on the extent of nonprofit revenue diversification, focusing on nonprofits’ managerialism, collaboration, and community ties. This study theoretically and empirically supports the idea that nonprofits utilize managerialism and collaboration as strategic tools to generate diverse revenue streams in their unique multilevel environmental contexts. Secondly, this dissertation explores how these multilevel factors affect the likelihood of human service nonprofits securing government contracts. It operates under the theoretical assumption that government cost considerations, nonprofits’ resource factors, and institutional pressures play key roles in determining the success of nonprofits in securing public contracts. The research demonstrates that nonprofits’ utilization of performance measures, administrative capacity, and advocacy efforts increase their chances of securing public contracts by aligning with the requirements of multiple levels. Thirdly, this study delves into the influence of social capital at the community level on charitable giving and foundation grants for nonprofits. The research findings suggest that nonprofits situated in communities with high rates of volunteering are likely to have a larger portion of foundation funding, while a high density of nonprofits has a negative influence. Conversely, tightly knit communities with dense social clusters tend to offer fewer contributions of individual donors. Additionally, the paper examines how leadership diversity connects social capital to nonprofits’ financial performance. It finds that board diversity significantly moderates the impact of bridging on individual donation income and the impact of bridging and bonding on foundation grant income. In summary, this dissertation provides valuable insights into the intricate web of relationships nonprofit organizational attributes, community characteristics, institutional environment, and nonprofits’ revenue acquisition outcomes. It underscores the adaptive nature of nonprofits in response to their environments and emphasizes the significance of strategic decision-making in ensuring their long-term sustainability.