Nonprofit organizations have a history of dependence on external funding to deliver programs and services. It is the delivery of these programs and services that allow nonprofit organizations to fulfill their mission. In order for nonprofit organization to be successful pursuing multiple streams of funding, there is a proposed ideal method to implement new programs which better provides sustainability for existing programs. The purpose of this quantitative, multiple regression research design was developed to assess how modern portfolio theory and resource dependence theory are used to strengthen nonprofit organizational ability to diversify revenue streams in creating sustainable organizations. Secondary, data from the GuideStar database of nonprofit organizations were used for this research study. The dataset included 103 nonprofit organizations in Texas, which is the focus geographic area for this study. The nonprofit organizations selected had revenue over $100,000, a 2011 Form 990 on file with the Internal Revenue Service, and expenditure of funds in one of the following categories: formalized management training, professional fundraising training, and professional development training. Personnel trainings are an important part of nonprofit organizational ability to receive external funding. Many funding sources require staff to participate in training as funding consideration. This research highlights support required by nonprofit organizations to establish sustainable business in the delivery of programs and services by reviewing total revenue; program expenses; total assets; number of employees employed by nonprofit organizations; and funds spent on employee training. It is the intent of this research to determine the level of revenue diversification required by nonprofit businesses to become sustainable organizations in the delivery of programs and services.
|Subjects||Management; Social sciences education; Sustainability|
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