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Diversification of Revenue Strategies: Evolving Resource Dependence in Nonprofit Organizations

Froelich, Karen A.·1999·Nonprofit and Voluntary Sector Quarterly

DOI 10.1177/0899764099283002

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Abstract

This article examines the effects of three major revenue strategies in nonprofit organizations. Evolving resource dependence is demonstrated by the shifting reliance on each source of funds: private contributions, government funding, and commercial activities. A wide-ranging literature review is condensed into summary profiles comparing revenue volatility, goal displacement, process, and structure effects of each strategy. The profiles are drawn upon to anticipate potential advantages and disadvantages of increasingly diversified revenue strategies employed by nonprofits to combat resource dependence. The potential interaction effects raise critical but unanswered questions about nonprofit performance, legitimacy, and public policy issues.

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Authors: Froelich, K. A.
Affiliations: North Dakota State University (US)
Corresponding author: Froelich, Karen A.
Venue: Nonprofit and Voluntary Sector Quarterly
Publisher: SAGE Publications
Published: 1999-09
Volume: 28
Issue: 3
Pages: 246-268
ISSN: 0094-0607 (ISSN-L)
0899-7640
1552-7395
DOI: 10.1177/0899764099283002
OpenAlex: W2119852045
Cited by: 863
References: 54
Citations by year: 2026: 37 · 2025: 33 · 2024: 38 · 2023: 42 · 2022: 57 · 2021: 67 · 2020: 52 · 2019: 50 · 2018: 61 · 2017: 58 · 2016: 75 · 2015: 42 · 2014: 47 · 2013: 45 · 2012: 42
FWCI: 5.80
Type: journal article
Language: en
Open access: closed
Licence: journals.sagepub.com/page/policies/text-and-data-mining-license (tdm)
Locations: Nonprofit and Voluntary Sector Quarterly (publishedVersion)
Topics: Social Sciences › Sociology and Political Science › Nonprofit Sector and Volunteering
Social Sciences › Economics, Econometrics and Finance › Finance › Community Development and Social Impact
Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Management and Organizational Studies
Keywords: resource dependence, income diversification, private contributions, government funding, business activity, revenue volatility, goal displacement, nonprofit performance, public policy

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Diversification of Revenue Strategies: Evolving Resource Dependence in Nonprofit Organizations

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