Advisory Committee Chair
Nevbahar Ertas
Advisory Committee Members
Erin L Borry
Peter A Jones
Document Type
Thesis
Date of Award
2020
Degree Name by School
Master of Public Administration (MPA) College of Arts and Sciences
Abstract
The financial health of nonprofits has been of interest to researchers for decades and continues to be of concern as the size United States nonprofit sector continues to grow both in the number of registered nonprofits and in finances, and third-party government increasingly uses partnerships with nonprofits to deliver services to the public. Empirical studies of revenue diversification and concentration indicate that they can both contribute to nonprofit financial health by assisting in developing a strategy of financial sustainability or financial capacity. However, empirical studies on the relationship between government funding and the nonprofit sector have been limited. This analysis predicts how the level of government grants to nonprofits impacts nonprofit revenue streams, particularly concerning revenue diversification, and contributes to the discussion of how the relationship between nonprofits and government can affect the financial decision making of nonprofits. Analysis of nonprofit tax return data from 2008 to 2013 from the Urban Institute’s National Center for Charitable Statistics indicates that as government grant contributions increase, a nonprofit’s revenue diversification increases. These results suggest that if the government desires a healthy nonprofit sector to help it deliver third-party government services, there needs to be better tracking of how government grants reach the nonprofit sector, and analysis of what level of grants is optimal for achieving financial health and the delivery of services.
Recommended Citation
Arceneaux, Samantha Jeanne, "The Relationship Between Government Grants and Nonprofit Revenue Diversification" (2020). All ETDs from UAB. 655.
https://digitalcommons.library.uab.edu/etd-collection/655
