Balancing Margin and Mission: Nonprofit Competition in Charitable Versus Fee-Based Programs

52 Pages Posted: 14 Nov 2002

See all articles by Peter Frumkin

Peter Frumkin

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs

Carol Chetkovich

Harvard University - Harvard Kennedy School (HKS)

Date Written: November 2002

Abstract

Competition in the nonprofit world has intensified in recent years, and nonprofit managers are challenged to devise strategies that will serve both organizational needs and public interest. We propose a framework for thinking about nonprofit competition based on the intersection of two dimensions: the domain of competition, which can be either fee-based or donative activities; and the competitive strategy, which can be either price- or differentiation-based. The experience of the American Red Cross, a prominent nonprofit organization facing competition in both fee-based and donative domains, provides data for the elaboration of the framework, and for tentative conclusions about the implications of nonprofit competition for both margin and mission.

Keywords: Nonprofit Management, Fee-based Programs, Competition

Suggested Citation

Frumkin, Peter and Chetkovich, Carol, Balancing Margin and Mission: Nonprofit Competition in Charitable Versus Fee-Based Programs (November 2002). Available at SSRN: https://ssrn.com/abstract=351221 or http://dx.doi.org/10.2139/ssrn.351221

Peter Frumkin (Contact Author)

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs ( email )

2300 Red River St., Stop E2700
PO Box Y
Austin, TX 78713
United States

Carol Chetkovich

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States

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