Correlation Between Nonprofit Organizational Income and Commercial Activities

Date of Conferral

10-26-2023

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

Annie Brown

Abstract

Nonprofit organizations are increasingly using social enterprise to increase net revenues available to perpetuate social mission activities. Demand for services has outpaced available funding, and thus, leaders of nonprofit organizations must seek effective sources of funding that do not increase their operational expenses. Grounded in Clark’s dynamic theory and Shumpeter’s innovation theory of profit, the purpose of this quantitative ex post facto research was to examine the relationship between revenues from commercial activities, operational expenses, and net revenues. Secondary data were collected from the 2018 Internal Revenue Service Form 990 for nonprofit organizations (n = 122). Data were analyzed using multiple linear regression, and the results were not statistically significant. A key recommendation based on these findings is for nonprofit organization leaders to examine financial statements to determine if commercial activities provide opportunities for greater net revenues that increase their ability to have a social impact. The implications for positive social change include the potential to provide direction for nonprofit organizational leaders to increase the efficiency and efficacy of their organizations.

This item is not available through Walden resources

Share

 
COinS