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

Aaron Turpin,Micheal L Shier,Femida Handy

doi:10.1515/npf-2020-0003

Aaron Turpin, Micheal L Shier + Show 1 more

Open Access

https://doi.org/10.1515/npf-2020-0003

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Abstract

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.

Highlights

The current welfare regime in Canada has been characterized by a shifting of responsibility for solutions to widespread social issues from the state to the market and nonprofit and voluntary sectors (Ascoli and Ranci 2002; Graham, Shier, and Delaney 2018; Shin 2015; Surender and Lewis 2004)
Canada’s social welfare state has been traditionally defined by values of liberalism (Esping-Andersen 1990). Within those values are embedded notions of individualism, the commodification of land, labor and capital, and various degrees of involvement of the government in the market, including redistributive efforts for social welfare provision (Harvey 2005). This social welfare state is a part of a broader social welfare regime that includes the for-profit market and civil society actors, such as nonprofits, which are directly responsible for the majority of direct social service delivery
H3b: Donating to nonprofits will be associated with positive orientation of their market-based activities

Summary

Introduction

The current welfare regime in Canada has been characterized by a shifting of responsibility for solutions to widespread social issues from the state to the market and nonprofit and voluntary sectors (Ascoli and Ranci 2002; Graham, Shier, and Delaney 2018; Shin 2015; Surender and Lewis 2004). In. Canada, charitable nonprofits (from here on referred to as ‘nonprofits’ for ease) represent approximately half of all the nonprofit sector and are distinguished by having charitable status from the federal government. Canada’s social welfare state has been traditionally defined by values of liberalism ( to other industrialized nations, such as the United States, Australia and the United Kingdom) (Esping-Andersen 1990). Within those values are embedded notions of individualism, the commodification of land, labor and capital, and various degrees of involvement of the government in the market, including redistributive efforts for social welfare provision (Harvey 2005). All three sectors play a pivotal role in supporting the social welfare needs of the counties citizenry (Graham, Shier, and Delaney 2018)

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