Nonprofit human service organizations (NHSOs) play an integral role in a broader social service infrastructure that, along with government and for-profit agencies, provides basic needs, mental health and substance abuse treatment, child care, and numerous other forms of assistance to a variety of client and community populations. Over the past 30 years, the nonprofit human service sector has undergone a transformation characterized by an increased reliance on commercial revenue--from client fees, product sales, business ventures, and other earned income.;Though scholars have explored the potential benefits and downsides of commercialization since the 1980s, much of the research has relied solely on qualitative explorations and case studies; quantitative empirical investigations have been scarce and limited in scope. There is a need to further explore the extent to which this phenomenon is taking place and how these trends impact the ability of service providers to fulfill their charitable obligations.;The purpose of this study is to examine the influence of reliance on program fees from private sources—one form of commercial income—on a variety of organizational characteristics among NHSOs. From the perspectives of resource dependence theory and institutional logics, I posit the following research questions: (1) What differences exist, if any, between fee-reliant NHSOs and those funded more heavily by government and individual donations?; and (2) In what ways, if any, does reliance on program fees and charges affect the organizational characteristics of NHSOs?;Based on survey data from a stratified random sample of NHSOs in Los Angeles County (n=639), key findings from a series of logistic regression analyses indicate that as NHSOs rely more heavily on program fees and charges, they are less likely to: (a) serve non-white clients; (b) offer non-English language services; and (c) rely on volunteers. In addition, program fees and charges predict a higher probability of engaging in competition with for-profit providers. Results suggest that if organizations are forced to rely more heavily on a fee-paying clientele, some marginalized populations may need to seek services elsewhere. Ultimately, however, findings only modestly support concerns about potential negative impacts of commercialization on the nonprofit human service sector. |