Publication: The relationship between nonprofits' revenue composition and their economic-financial efficiency
Program
KU-Authors
KU Authors
Co-Authors
Ecer, Sencer
Magro, Mark
Publication Date
Language
Type
Embargo Status
Journal Title
Journal ISSN
Volume Title
Alternative Title
Abstract
We study financial efficiency in the nonprofit sector and document that organizations that rely mainly on commercial revenues are more efficient in managing their overhead and administrative expenses compared with nonprofits that rely mainly on donations. We also record a positive relationship between the extent of a nonprofit's reliance on donations and its efficiency in generating them. Our findings suggest economies of scale in the nonprofit sector and also a positive (negative) relationship between receiving government grants (membership income) and overall efficiency. We discuss what our findings imply for social enterprises and traditional nonprofits.
Source
Publisher
Sage
Subject
Social policy
Citation
Has Part
Source
Nonprofit and Voluntary Sector Quarterly
Book Series Title
Edition
DOI
10.1177/0899764016649693