Revenue Diversification, Growth, and Stability

Chikoto‐Schultz, Grace L.; Sakolvittayanon, Narttana

doi:10.4324/9780429265419-10

Cited by 4 publications

(17 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Revenue diversification is a financial strategy in which the organization relies on diverse and multiple sources of income. It improves the financial health and stability of nonprofit organizations because it lowers the risk of financial crisis, provides the organization with a financial cushion and improves the likelihood for financial organizational survival (Chikoto-Schultz & Sakolvittayanon, 2020). A particularly relevant finding by Hager (2001) is that arts nonprofit organizations with a higher degree of revenue diversification were less likely to close down.…”

Section: Revenue Diversification and Entrepreneurship In Nonprofit Organizationsmentioning

confidence: 99%

“…Generally speaking, nonprofit organizations draw financial support from multiple sources, including private and corporate donations, commercial activities, government support and other sources of income -resulting in a mix of income sources. Generating a sufficiently robust and diversified mix of income is critical to sustaining the nonprofit organization (Chikoto-Schultz & Sakolvittayanon, 2020;Hung & Hager, 2019). Strong dependence on a single source of income could endanger the organization if income from that source is suddenly reduced.…”

Section: Culture Change Is Hardmentioning

confidence: 99%

“…In addition to government funding, nonprofit organizations can also raise income from private or corporate donations, engage in corporate sponsorships, apply for grants from foundations, sell goods and services, raise membership fees or obtain income from investments or other resources (Chikoto-Schultz & Sakolvittayanon, 2020;Garcia-Rodriquez & Romero-Merino, 2020). These other sources have gradually been considered more relevant in recent years (Garcia-Rodriquez & Romero-Merino, 2020).…”

Section: Revenue Diversification and Entrepreneurship In Nonprofit Organizationsmentioning

confidence: 99%

See 2 more Smart Citations

The Routledge Handbook of Taxation and Philanthropy

Peter¹,

Lideikyte-Huber²

2021

View full text Add to dashboard Cite

The Routledge Handbook of Taxation and Philanthropy ventures into a territory that is still widely unexplored. It contains 30 academic contributions that aim to provide a better understanding of whether, why, and how philanthropic initiatives, understood as voluntary contributions for the common good, can and should be fostered by states through tax incentives. The topic has been addressed from a multidisciplinary and multicultural perspective -covering neuroeconomics, sociology, political science, psychology, affective sciences, philosophy, behavioral economy, and law -because of its global and multifaceted nature. It also contains the OECD report on Taxation and Philanthropy released in November 2020, which was prepared in this context as a result of a collaboration with the Geneva Centre for Philanthropy of the University of Geneva.The book is divided into four sections, exploring, respectively, the justification of tax incentives for philanthropy, theoretical and empirical insights about taxes, efficiency and donor behavior in that context, and tax incentives for cross-border philanthropy and for hybrid entities and social entrepreneurship. It is believed that this volume will be a landmark yet only the beginning of a journey in which a lot remains to be studied, learned, and said.

show abstract

Section: Revenue Diversification and Entrepreneurship In Nonprofit Organizationsmentioning

confidence: 99%

Section: Culture Change Is Hardmentioning

confidence: 99%

Section: Revenue Diversification and Entrepreneurship In Nonprofit Organizationsmentioning

confidence: 99%

See 1 more Smart Citation

The Routledge Handbook of Taxation and Philanthropy

Peter¹,

Lideikyte-Huber²

2021

View full text Add to dashboard Cite

show abstract

“…Empirical studies have shown that most of the social organizations are not able to operate exclusively on their own revenues (Bernardino & Freitas Santos, 2021;dionisio, 2019;donaldson et al, 2021;Zhang & Swanson, 2013). Nevertheless, social organizations are increasingly aware of the importance of diversifying and increasing the organization's own income (Bernardino & Freitas Santos, 2021;Bloom & Smith, 2010;Boschee & McClurg, 2003;Chikoto-Schultz & Sakolvittayanon, 2020;Garcia-Rodriguez & Romero-Merino, 2020).…”

Section: Funders and Donorsmentioning

confidence: 99%

Nurturing Inter-Organizational Relationships to Increase Economic and Social Performance

Bernardino,

Freitas Santos,

Mendonça da Silva

2024

CES

View full text Add to dashboard Cite

The study adopts a network perspective to develop a conceptual model that proposes several hypotheses to examine the role of inter-organizational relationships with different stakeholders (funders/donors, other social organizations, government institutions) in the process of resources’ mobilization for social organizations and the impacts on the social and economic performance. The research uses primary data collected from the managers of social organisations and applies structural equation modelling, to test the hypotheses of the base model. The results indicate that the governance of inter-organizational relationships determines the process of resources’ mobilization and, consequently, enhances the social and economic performance of the social organizations. The findings suggest that our understanding of the process of resources acquisition by social organizations could be enriched by integrating the network perspective into the specific context of social management.

show abstract

“…Applying this to nonprofits, Krashinsky (1986) separates transaction costs into those between producers and consumers, and among consumers, such as donors. While this theory is traditionally applied to the decision to make or buy, or in other words, to do something in-house vs. contract out, this can also apply to the decision to concentrate or diversify revenue sources (Chikoto-Schultz & Sakolvittayanon, 2020). According to this theory and the literature, revenue diversification's complexities incur various transaction costs (Chikoto-Schultz & Sakolvittayanon, 2020).…”

Section: Transaction Cost Theory Perspectivementioning

confidence: 99%

Does Revenue Concentration Really Bring Organizational Efficiency? Evidence From Habitat for Humanity

Berrett,

Hung

2023

Nonprofit and Voluntary Sector Quarterly

View full text Add to dashboard Cite

Past empirical studies demonstrate a positive connection between revenue concentration and organizational efficiency. This supports the idea that concentrating revenue helps minimize transaction costs of nonprofit organizations, resulting in greater efficiency. However, this finding contradicts the belief that revenue concentration increases the risk of revenue volatility, leading to service delivery disruptions and reduced efficiency in nonprofits. Moreover, these studies have used an efficiency measure that might not be suitable. To address this, our study examines the relationship between revenue concentration and organizational efficiency using a more appropriate measure. Analyzing data from Habitat for Humanity, we discover a U-shaped relationship: nonprofits are most efficient when fully diverse or fully concentrated in revenue. These findings contribute to the ongoing debate on nonprofit revenue diversification, with significant implications for nonprofits. They also highlight the importance of using more appropriate efficiency measures in future scholarly research.

show abstract

Revenue Diversification, Growth, and Stability

Cited by 4 publications

References 1 publication

The Routledge Handbook of Taxation and Philanthropy

The Routledge Handbook of Taxation and Philanthropy

Nurturing Inter-Organizational Relationships to Increase Economic and Social Performance

Does Revenue Concentration Really Bring Organizational Efficiency? Evidence From Habitat for Humanity

Contact Info

Product

Resources

About