Date of Conferral
Public Policy and Administration
Thousands of newly established nonprofit organizations (NPOs) with long-lasting and needed missions disappear annually, which negatively impacts the nonprofit sector in general and the potential recipients of the discontinued NPOs' services. The purpose of this quantitative study was to examine the possible influence that the presence of a strategic resource development plan and the establishment of a stand-alone business entity have on the persistence of newly established NPOs that have long-lasting and needed missions in the United States within the context of the theoretical framework resource dependence theory. Research questions focused on the role of commercial activities, particularly the stand-alone business entity model, and the importance of strategic resource development on NPOs' sustainability within the first 5 years of existence. The study population consisted of NPOs that had disappeared within 5 years of existence and those that had remained active for more than 5 years. Data from a researcher-developed survey instrument were collected from 33 representatives of active organizations and 29 representatives of nonactive organizations. Chi-square tests of independence revealed that the strategic resource development plan and the commercial activities/stand-alone business entities were significantly associated with the sustainability of the NPOs. Findings may be used to promote the creation of a strategic resource development plan and/or a stand-alone business entity at the initial stages of NPOs' establishment to sustain their role and contributions in their communities.