Organizational culture and revenue-raising strategies in social service not-for-profits

Abstract

Using survey and archival data, we investigate the relations between organizational culture and revenue-raising strategies of diversification and concentration in not-for-profit organizations (NFPs). We find that both a respect for people culture and a stability culture positively influence diversification, while an outcome orientation culture positively influences concentration. An innovation culture is not associated with either strategy. We confirm prior findings that governance factors of board size and gender diversity influence NFPs’ revenue strategies, and extend this research by incorporating board expertise, finding business expertise is positively associated with revenue concentration, whereas legal expertise is positively associated with diversification.

JEL Classification: L31 Nonprofit Institutions

Keywords

Not-for-profit organizational culture revenue concentration revenue diversification revenue-raising strategies

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