COMMERCIALISM IN NONPROFIT SOCIAL-SERVICE ASSOCIATIONS - ITS CHARACTER, SIGNIFICANCE, AND RATIONALE

This article examines the commercial practices and sales income of nat ional nonprofit social services associations in the United States. The associations span the fields of youth services, health charities, com munity and recreation services, and advocacy programs for older Americ ans and children. The commercial ventures of these associations reflec t an important trend in the nonprofit social services sector which has implications for taxation, financing, and regulatory policies. The co nceptual framework that defines nonprofit organizations as multiproduc t economic organizations helps illuminate the relationship of commerci al sales to the pursuit of the mission. In general, the commercial ini tiatives of the associations examined are not solely revenue-producing ventures in that they make direct contributions to the mission as wel l; indeed, pains ave taken by association lenders to avoid activities that would damage their associations' abilities to pursue their missio ns. Statistical analysis of the sales revenues of local affiliates of one association-the Jewish Community Centers Association-demonstrates that losses of external income from grants and contributions stimulate sales income whereas increases in memberships expand the markets with in which these organizations can generate revenue from user fees.