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How Do NPOs Get Funding? A Business Model Perspective Based on the Conversion of Symbolic Capital

Author

Listed:
  • Rachel Bocquet

    (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

  • Gaëlle Cotterlaz-Rannard

    (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc, UNIGE - Université de Genève = University of Geneva)

  • Michel Ferrary

    (UNIGE - Université de Genève = University of Geneva, LSMRC - Lille School of Management Research Center - ULR 4112 - SKEMA Business School - Université de Lille)

Abstract

Despite intensive research dedicated to both social alliances and business models, a research gap persists with regard to why and how nonprofit organizations (NPOs) choose (or not) to partner with for-profit organizations (FPOs) to obtain funding. By adopting an NPO-centered analysis, this article presents a new framework, based on Bourdieu's forms of capital. With an explicit consideration of symbolic capital—and the risks of damaging it if the NPO turns to FPOs for funding—the authors explore specific issues related to NPO business models. The empirical test of the framework relies on an original database of 150 nongovernmental organizations with international scope. It reveals four distinct business models (public, civic, opportunistic, and diversified) and demonstrates that a high stock of symbolic capital gives organizations the power to choose and eventually diversify their funding sources, including partnering with select FPOs.

Suggested Citation

  • Rachel Bocquet & Gaëlle Cotterlaz-Rannard & Michel Ferrary, 2020. "How Do NPOs Get Funding? A Business Model Perspective Based on the Conversion of Symbolic Capital," Post-Print hal-02888601, HAL.
    • Handle: RePEc:hal:journl:hal-02888601
    DOI: 10.1177/0899764020925912
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    Cited by:

    1. Ramesh Nair & Roshayani Arshad & Ruhaini Muda & Siti Aeisha Joharry, 2023. "Web-disclosure practices for transparency and the sustainability of non-profit organisations," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 20(1), pages 1-23, March.
    2. Victoria K. Wells & Sarah Forbes & Madeline Powell & Daragh O'Reilly, 2022. "Segmentation, environmental identity and stages of change: An application to a wildlife trust," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 934-949, March.

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