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Consumer Ethnocentrism: Revenue Diversification Strategiesfor Non-Governmental Organizations

Author

Listed:
  • Emil CRIȘAN

    (Babeș-Bolyai University)

  • Mădălina DAN

    (Babeș-Bolyai University)

Abstract

Nowadays, NGOs have an important place in our society, but unfortunately almost every NGO is struggling financial issues. The purpose of this paper is to analyze the main strategies NGOs have for revenue diversification, as a path to financial sustainability. This article focuses on Romanian NGOs and its main goal is to identify how NGOs choose their revenue diversification strategy. The empirical research consists in two case-studies, the focus being on identifying the revenue streams two NGOs have chosen. The main finding is that the choice of revenue strategies is related to the context each NGO has, context that can be described considering their life cycle, specialization, place within local and regional areas and the recent lessons each NGO has learned concerning specific revenue strategies. This study successfully defines the main concerns and limitations fundraising has and also contributes to academic debate about how to solve these issues.

Suggested Citation

  • Emil CRIȘAN & Mădălina DAN, 2018. "Consumer Ethnocentrism: Revenue Diversification Strategiesfor Non-Governmental Organizations," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 19(1), pages 31-39, March.
    • Handle: RePEc:rom:rmcimn:v:19:y:2018:i:1:p:31-39
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    File URL: https://www.rmci.ase.ro/no19vol1/03.pdf
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    References listed on IDEAS

    as
    1. Arthur C. Brooks, 2000. "Public subsidies and charitable giving: Crowding out, crowding in, or both?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(3), pages 451-464.
    2. Nicoleta Ciucescu, 2011. "Financial Resources of NGOs," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 16-17.
    3. Cace, Sorin & Arpinte, Daniel & Cace, Corina & Cojocaru, Daniela, 2012. "Financial resources management-Factor of sustainable development of the NGOs implementing social economy activities," MPRA Paper 85279, University Library of Munich, Germany.
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    Cited by:

    1. Renata Brajer-Marczak & Anna Marciszewska & Michał Nadolny, 2021. "Selected Determinants of Stakeholder Influence on Project Management in Non-Profit Organizations," Sustainability, MDPI, vol. 13(16), pages 1-19, August.

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    More about this item

    Keywords

    : non-governmental organizations; revenue diversification; financial sustainability; Romania; case-study.;
    All these keywords.

    JEL classification:

    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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