Start-Up Funding Intentions Among Nascent Nonprofit Entrepreneurs: An Exploratory Investigation

Fredrik O Andersson

doi:10.20899/jpna.4.1.7-20

Abstract

This paper explores the start-up funding intentions of nascent nonprofit entrepreneurs, i.e., individuals in the process of creating a new formal nonprofit organization. The main questions being examined are from which sources nascent nonprofit entrepreneurs anticipate to obtain start-up funding from, how much start-up funding nascent nonprofit entrepreneurs anticipate they will need to formally launch their new nonprofit, and if there are any differences in funding intentions among nascent nonprofit entrepreneurs with and without previous start-up experience. The results from a survey of 103 nascent nonprofit entrepreneurs in Kansas City are presented and contrasted with existing research on funding of new nonprofit organizations. The results show an apparent preference for start-up funding from philanthropic grants and private donations, along with personal contributions of the founder(s).

Highlights

The creation of a nonprofit organization is not a random event but the result of a process that includes multiple undertakings, many of which occur before the formal launch of the new organization (Dollhopf & Scheitle, 2016)
By only targeting successful nonprofit entrepreneurs, these studies are less likely to capture the full spectrum of start-up funding intentions, which is necessary if our goal is to explain which start-up funding strategies are more or less effective for starting a new nonprofit
The purpose of this article is to paint a broader picture of start-up funding intentions among nascent nonprofit entrepreneurs

Summary

Introduction

The creation of a nonprofit organization is not a random event but the result of a process that includes multiple undertakings, many of which occur before the formal launch of the new organization (during the so-called pre-organization or nascent phase) (Dollhopf & Scheitle, 2016). Previous studies have typically examined the type and amount of start-up funding obtained by successful nonprofit entrepreneurs i.e., those. The articles draw from survey answers from 103 nascent nonprofit entrepreneurs, here defined as individuals in the early process of creating a new nonprofit venture, in Kansas City. The objective is neither to test hypotheses nor to claim any findings to be generalizable beyond the discrete group of nascent nonprofit entrepreneurs explored in this study Rather, it aims to show the importance of including a nascent perspective when examining nonprofit entrepreneurship. Despite lacking a longitudinal dimension, there is an opportunity to compare and contrast the findings of this study to previous studies examining the type of funding received by those succeeding in launching a new nonprofit start-up (Van Slyke & Lecy, 2012)

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Conclusion