Selling Out? A Cross-National Exploration of Nonprofit Retail Operations

Abstract

Nonprofit revenue sources have significant consequences for how we understand the sector, its power, and sources of accountability. Earned income is an important element of the nonprofit revenue mix. And while commercialism among nonprofits has received some attention, there has been relatively little research seeking to understand the types of earned income that nonprofits are using and the non-commercial, mission-enhancing objectives that these activities potentially serve. This research note addresses that gap through an analysis of one type of earned income: retail operations. The note begins by situating retail within the wider literature on nonprofit revenue, and then introduces the concept of a nonprofit retail operation (NRO). It then introduces a typology of NRO formats, distinguished by the objectives that they serve. Next, it provides descriptive cross-national data on NROs using a dataset of 22 leading international non-governmental organizations in 12 countries. Finally, it discusses areas for future NRO research.