To profit or not to profit : the commercial transformation of the nonprofit sector

Nonprofit organizations are increasingly resembling private firms in a transformation bringing with it a shift in financial dependence from charitable donation to commercial sales activity. This book, first published in 1998, examines the reasons and consequences of the mimicry of private firms by fundraising nonprofits. User fees and revenue from 'ancillary' activities are mushrooming, with each having important side effects: pricing out of the market certain target groups; or distracting the nonprofit from its central mission. The authors focus first on issues that apply to nonprofits generally: the role of competition, analysis of nonprofit organization behavior, the effects of distribution goals and differential taxation of nonprofit and for-profit activity revenue, the effects of changes in donations on commercial activity, and conversions of nonprofits to for-profits. They then turn to specific industries: hospitals, universities, social service providers, zoos, museums, and public broadcasting. The book concludes with recommendations for research and for public policy toward nonprofits. The Nonprofit Mission And Its Financing : Growing Links Between Nonprofits And The Rest Of The Economy / Burton A. Weisbrod -- Pt. I. Basic Issues And Perspective. Competition, Commercialization, And The Evolution Of Nonprofit Organizational Structures / Howard P. Tuckman ; Modeling The Nonprofit Organization As A Multiproduct Firm : A Framework For Choice / Burton A. Weisbrod ; Pricing And Rationing By Nonprofit Organizations With Distributional Objectives / Richard Steinberg And Burton A. Weisbrod ; Differential Taxation Of Nonprofits And The Commercialization Of Nonprofit Revenues / Joseph J. Cordes And Burton A. Weisbrod ; Interdependence Of Commercial And Donative Revenues / Lewis M. Segal And Burton A. Weisbrod ; Why Does It Happen And Should Anyone Care? / John H. Goddeeris And Burton A. Weisbrod -- Pt. Ii. Industry Studies. Commercialism In Nonprofit Hospitals / Frank A. Sloan ; Universities As Creators And Retailers Of Intellectual Property : Life-sciences Research And Commercial Development / Walter W. Powell And Jason Owen-smith ; Commercialism In Nonprofit Social Service Association : Its Character, Significance And Rationale / Dennis R. Young ; Zoos And Aquariums / Louis Cain And Dennis Meritt, Jr. ; Commerce And The Muse : Are Art Museums Becoming Commercial? / Helmut K. Anheier And Stefan Toepler ; The Funding Perils Of The Corporation For Public Broadcasting / Craig L. Lamay And Burton A. Weisbrod -- Pt. Iii. Overview, Conclusions, And Public-policy Issues. Commercialism Among Nonprofits : Objectiv Edited By Burton A. Weisbrod. A Collection Of Papers Initiated, Discussed, And Refined At Two Working Conferences Held By The Contributors. Includes Bibliographical References (p. 317-335) And Index. To Profit or Not to Profit is a coordinated set of studies of why fund-raising for nonprofits is mimicking that of private firms and what consequences it is having. User fees and revenue from "ancillary" activities - those not contributing directly to the organization mission except for the profit generated - are mushrooming, with each having important side effects. User fees may price out of the market some of the nonprofit's target group. Ancillary activities may distract the nonprofit from its central mission. These issues are examined from two perspectives. One focuses on issues that apply to nonprofits generally. A second set of studies focuses on specific industries. Nonprofit organizations are changing dramatically in the ways they are financed. They are becoming increasingly commercial, operating more like private firms. Far more is involved than the generation of revenue. As donations decline in importance and user fees and money-raising ancillary activities come to dominate, they bring side-effects on the social missions that justify public support. This book examines these little-recognized relationships for the overall nonprofit charitable sector and then focuses on each of six industries; important differences are found among hospitals, universities, social service providers, zoos, museums, and public broadcasting. Nonprofit organizations are changing dramatically in the ways they are financed. They are becoming increasingly commercial, operating more like private firms. Far more is involved than the generation of revenue. As donations decline in importance and user fees and money raising ancillary activities come to dominate, they bring side-effects on the social missions that justify public support. This book examines these little-recognized relationships for the overall nonprofit charitable sector and then focuses on each of six industries; important differences are found among hospitals, universities, social service providers, zoos, museums, and public broadcasting. Nonprofit organisations are becoming increasingly like private firms with the transformation bringing a shift in financial dependence. This work asks why fundraising nonprofits are mimicking private firms and what consequences this is having