Donor Reactions to Commercial Activities of Nonprofit Organizations: An American Case Study

This paper raises two questions. Do donors to nonprofit organizations care about whether nonprofit organizations pursue commercial activities? Do donors more approve commercial activities that are related to or advance the mission of a nonprofit organization than those commercial activities that do not? The paper uses data collected from donors and volunteers with one human services nonprofit organization in the United States. The principal conclusions are two. Most donors and volunteers have little interest in the sources of nonprofit organizations’ funds. Among the relatively small percentage of donors and volunteers who attend to use of commercial activities, the use of activities that are consistent with or advance the organization’s mission is approved, and the use of commercial activities that do not advance the mission is relatively disapproved.