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Donors' giving decisions toward nonprofit commercialization : do commercial form and intensity matter?

ChiaKo Hung and Ben Suykens (UGent)
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Abstract
Commercialization is an established yet contested practice in the nonprofit sphere. Whereas proponents point to increased financial stability, others warn about crowding out of individual donations. This ambiguity raises the question: Under which configuration is nonprofit commercialization (un)likely to uphold the promise of financial stability? Drawing on institutional theory, we conduct a survey experiment with U.S.-based individuals (N = 1031) to examine the impact of nonprofit commercialization form (i.e., commercialization of core/ancillary activities) and intensity on individual donation likelihood. Contrary to our theoretical expectations, we find that individual donors (a) prefer commercial ancillary activities over commercial core activities, and (b) are not negatively affected by high levels of commercial income. This study advances our understanding of how nonprofit commercialization affects donors' giving likelihood. This study also offers guidance to nonprofit practitioners on how to commercialize for better financial health.
Keywords
CIVIL-SOCIETY, BUSINESS-LIKE, ORGANIZATIONS, MARKETIZATION, REVENUE, DIVERSIFICATION, DETERMINANTS, PERCEPTIONS, SERVICES, SCIENCE, context, giving, individual donors, institutional theory, nonprofit commercialization, philanthropy

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Citation

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MLA
Hung, ChiaKo, and Ben Suykens. “Donors’ Giving Decisions toward Nonprofit Commercialization : Do Commercial Form and Intensity Matter?” NONPROFIT MANAGEMENT & LEADERSHIP, vol. 34, no. 2, 2023, pp. 293–315, doi:10.1002/nml.21577.
APA
Hung, C., & Suykens, B. (2023). Donors’ giving decisions toward nonprofit commercialization : do commercial form and intensity matter? NONPROFIT MANAGEMENT & LEADERSHIP, 34(2), 293–315. https://doi.org/10.1002/nml.21577
Chicago author-date
Hung, ChiaKo, and Ben Suykens. 2023. “Donors’ Giving Decisions toward Nonprofit Commercialization : Do Commercial Form and Intensity Matter?” NONPROFIT MANAGEMENT & LEADERSHIP 34 (2): 293–315. https://doi.org/10.1002/nml.21577.
Chicago author-date (all authors)
Hung, ChiaKo, and Ben Suykens. 2023. “Donors’ Giving Decisions toward Nonprofit Commercialization : Do Commercial Form and Intensity Matter?” NONPROFIT MANAGEMENT & LEADERSHIP 34 (2): 293–315. doi:10.1002/nml.21577.
Vancouver
1.
Hung C, Suykens B. Donors’ giving decisions toward nonprofit commercialization : do commercial form and intensity matter? NONPROFIT MANAGEMENT & LEADERSHIP. 2023;34(2):293–315.
IEEE
[1]
C. Hung and B. Suykens, “Donors’ giving decisions toward nonprofit commercialization : do commercial form and intensity matter?,” NONPROFIT MANAGEMENT & LEADERSHIP, vol. 34, no. 2, pp. 293–315, 2023.
@article{01H8XKZ9912X31ZDQBKMQK145S,
  abstract     = {{Commercialization is an established yet contested practice in the nonprofit sphere. Whereas proponents point to increased financial stability, others warn about crowding out of individual donations. This ambiguity raises the question: Under which configuration is nonprofit commercialization (un)likely to uphold the promise of financial stability? Drawing on institutional theory, we conduct a survey experiment with U.S.-based individuals (N = 1031) to examine the impact of nonprofit commercialization form (i.e., commercialization of core/ancillary activities) and intensity on individual donation likelihood. Contrary to our theoretical expectations, we find that individual donors (a) prefer commercial ancillary activities over commercial core activities, and (b) are not negatively affected by high levels of commercial income. This study advances our understanding of how nonprofit commercialization affects donors' giving likelihood. This study also offers guidance to nonprofit practitioners on how to commercialize for better financial health.}},
  author       = {{Hung, ChiaKo and Suykens, Ben}},
  issn         = {{1048-6682}},
  journal      = {{NONPROFIT MANAGEMENT & LEADERSHIP}},
  keywords     = {{CIVIL-SOCIETY,BUSINESS-LIKE,ORGANIZATIONS,MARKETIZATION,REVENUE,DIVERSIFICATION,DETERMINANTS,PERCEPTIONS,SERVICES,SCIENCE,context,giving,individual donors,institutional theory,nonprofit commercialization,philanthropy}},
  language     = {{eng}},
  number       = {{2}},
  pages        = {{293--315}},
  title        = {{Donors' giving decisions toward nonprofit commercialization : do commercial form and intensity matter?}},
  url          = {{http://doi.org/10.1002/nml.21577}},
  volume       = {{34}},
  year         = {{2023}},
}

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