Value as a Self-Sustaining Mechanism

Abstract

Empirical observations increasingly evidence that nonprofit organizations are becoming a less distinctive form of organization due to commercialization and the adoption of government practices. This fact challenges nonprofit theory development, which lags behind the development of practices in the field. This study examines one representative service nonprofit and asks how and why it is similar to and, simultaneously, different from private and public organizations. The purpose is to contribute to the debate on the assumption of nonprofit theory—should we study nonprofits as a distinct form of organization or perhaps as hybrids? The case study reveals that the case organization’s self-sustaining mechanism is based on value that generates many kinds of assistance at no cost. This mechanism, paired with a community base and a not-for-profit identity, formulates a distinct nonprofit model. However, due to the inadequacy of the value-based self-sustaining mechanism, the organization has to adopt business and government practices.