Factors Shaping Public Perceptions of Market-based Activities Undertaken by Canadian Nonprofits

Abstract

Charitable nonprofits are engaging at increasing rates in market-based activities. This study examined Canadian public perception of nonprofits’ market-based activities. Latent variables for trust, financial accountability, transparency, direct and general familiarity, understanding of nonprofit roles in service delivery and advocacy, and orientation towards market-based activities were created using a secondary dataset of nationally representative Canadians (n = 3853). Results show that positive perceptions of market-based activities of nonprofits are influenced by familiarity of nonprofits, accepting their advocacy role, and perceiving them as being accountable. Those with stronger views of nonprofits as providers of direct service had unfavorable perceptions of the nonprofit’s market-based activities. The findings have implications for nonprofit managers who engage in market-based activities and want to promote a positive orientation to these endeavors to engage consumers and investors.

Keywords

• nonprofits
• for-profit activities
• market-based activities
• public perceptions
• accountability
• familiarity