Access to Philanthropic and Commercial Income Among Nonprofit Community Service Organisations

Governments depend on nonprofit, voluntary sector organisations to deliver social and community services, and public funding is the sector’s most important income source. However, in many countries, public funding for social services is becoming more limited, conditional and precarious, and governments are encouraging nonprofits to diversify their funding base, and shift their reliance to income from market activity and private donations. This article is concerned with access to philanthropic and commercial funding among nonprofits, and the factors affecting it. It firstly discusses an emerging policy agenda to promote private funding among nonprofit community service providers. Then, multivariate analysis of survey data from 521 Australian nonprofits shows which organisations access income from client fees, business activities, community fundraising, and philanthropic foundations. By exploring inequalities in the distribution of these main sources of private funding, the article helps identify the types of organisations that face challenges in establishing and sustaining streams of private income, and which are likely to require ongoing public support.