The Impact of Commercial Activities on Donative Revenues of Nonprofit Organizations
Nonprofit organizations (NPOs) raise funds relying heavily on many activities and social resources to support their work. The charitable donations from individuals and corporations are the usual channels of fundraising for the NPOs. As the number of NPOs grows rapidly, the competition for the funds among NPOs is getting more severe. Hence, the commercial activities are emerging as alternatives for fundraising. For example, some NPOs sell a variety of products or charge fees for specific services. In this study the regression models are involved to investigate the associations between the commercial and donative revenues. Furthermore, we examine the impact of other variables including the government funding, service prices and organization ages on the donations. The regression results indicate that there exist negative significant associations between the commercial and donative revenues, which imply that the commercial revenues crowd out the donations. In addition, there exist negative significant associations between the government funding and the donative revenues. However, the associations between the prices and the donations, and the associations between the organization ages and the donations are not significant.