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

Rachel Bocquet, Gaëlle Cotterlaz-Rannard and Michel Ferrary ()
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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

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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.

Keywords: business model; social alliances; nonprofit organizations; symbolic capital; economic capital (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

Published in Nonprofit and Voluntary Sector Quarterly, inPress, ⟨10.1177/0899764020925912⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02888601

DOI: 10.1177/0899764020925912

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