How Do NPOs Get Funding? A Business Model Perspective Based on the Conversion of Symbolic Capital

Abstract

Despite intensive research dedicated to both social alliances and business models, a research gap persists with regard to why and how nonprofit organizations (NPOs) choose (or not) to partner with for-profit organizations (FPOs) to obtain funding. By adopting an NPO-centered analysis, this article presents a new framework, based on Bourdieu’s forms of capital. With an explicit consideration of symbolic capital—and the risks of damaging it if the NPO turns to FPOs for funding—the authors explore specific issues related to NPO business models. The empirical test of the framework relies on an original database of 150 nongovernmental organizations with international scope. It reveals four distinct business models (public, civic, opportunistic, and diversified) and demonstrates that a high stock of symbolic capital gives organizations the power to choose and eventually diversify their funding sources, including partnering with select FPOs.

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Segmentation, environmental identity and stages of change: An application to a wildlife trust

“…A non‐hierarchical K ‐means cluster analysis, used previously in the non‐profit research (Bocquet et al, 2020), was completed to analyse and segment the data as this best discriminates between non‐categorical data. For the purpose of the research, two phases of segmentation were undertaken.…”

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“…They receive most of their income in the forms of citizen donations and/or government support (Hansmann, 1980), generating a close dependence with external donors. However, increasing competition for funding among NPOs has prompted a search for new funding opportunities to create societal value, such as the use of corporate funding or the commercialization of services or products (Bocquet et al, 2020;Froelich, 1999;Suykens, De Rynck, & Verschuere, 2019). Nevertheless, the purpose of NPOs remains focused on the creation of societal value.…”