Retained earnings maximizing nonprofit enterprises

Douglas A. Norton

A chapter in Charity with Choice, 2010, pp 113-129 from Emerald Group Publishing Limited

Abstract: Purpose – The purpose of this chapter is to present a new business model called the Retained Earnings Maximizing (REM) Nonprofit Enterprise. Specifically, the chapter details the nature of the REM enterprise's motivation, organizational control, market interaction with other firms, and obstacles to the growth for the REM enterprise. Additionally, the chapter outlines a research agenda for experimental and empirical inquiries into nonprofit organizations and the REM enterprise. Methodology – This chapter utilizes standard industrial organization theory in a nonmathematical approach to explaining the nature of the REM enterprise. Findings – The chapter seeks to establish the business model of the REM. By inquiring into the nature of the REM enterprise, the chapter provides the basis for future research. Research Limitations – The research was limited in terms of potential case studies because this is a new business model that is being proposed. Practical Implications – The chapter could have large practical implications for increased and more consistent revenues to philanthropic organizations. Since writing the chapter, we tried to implement our own REM business model in an on campus coffee shop. Other ventures are being established in a similar vein. Value of the Chapter – The adoption of the L3C legal structure by a handful of states demonstrates the desire to establish new business models with charitable ends. Likewise, the REM business model hopes to increase levels of philanthropy while spurring innovative thought about the Independent Sector which has been underrepresented in economic research.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
https://www.emerald.com/insight/content/doi/10.110 ... 2306(2010)0000013007
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:rexezz:s0193-2306(2010)0000013007

DOI: 10.1108/S0193-2306(2010)0000013007

Access Statistics for this chapter

More chapters in Research in Experimental Economics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().