Study: Public's view of nonprofit organizations could affect their business

Study: Public's view of nonprofit organizations could affect their business

Certain stereotypes of nonprofit organizations may affect their ability to succeed in the business sector, new research suggests.

A recent study from the Stanford Graduate School of Business found that many consumers, investors and other stakeholders allow their stereotypes to affect their investment and participation in the business practices of certain organizations.

Researchers say that although nonprofits are generally viewed as warm, generous and caring organizations, many business professionals assume that they are less competent in their ability to deliver quality goods and services than for-profit companies.

Cassie Mogilner, a Wharton School professor, said that these findings indicate that because "competence is what really drives a consumer's intention to purchase… anything that boosts [a nonprofit's] perceived competence will help them survive in the marketplace."

These strategies may prove helpful to individuals who are pursuing campus-based or online MBA degrees, as the nonprofit sector could provide them with career opportunities.

This industry currently employs approximately 15 million individuals in the U.S. alone, according to the General Accounting Office.


By Stefanie Hughes