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Purpose

This article aims to examine the dynamic nature of the sources of funding for not‐for‐profit (NPs) organizations with particular reference to NPs in the human service sector NPs in the US.

Design/methodology/approach

The universe of NPs include government and so‐called third sector organizations which such as charities, healthcare organizations, educational institutions and disaster relief organizations. Specifically the authors examined the human service sector of NPs with the aim of analyzing the relationships between government subsidy and the level of commercial activities of NPs.

Findings

The expectation is that NPs with greater level of commercial of for‐profit type activities are better managed than NPs that are solely reliant on government subsidies.

Originality/value

This article examines the dynamic nature of the sources of funding for not‐for‐profit (NPs) organizations with particular reference to NPs in the human service sector NPs in the US.

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