Revenue Streams of Social Impact Incubators and Accelerators: The Influence of Program Benefits

• In Event: Non-profit finances 2

Abstract

In recent years, many initiatives and programs have been developed to strengthen and promote the social economy, but its growth is not meeting the expectations to date. One answer to this lack of development are private support organizations such as social impact incubators and accelerators (SIIAs). However, this new type of organization is not well understood. For example, the determinants of their revenue streams are unknown. In this study, we apply benefits theory of nonprofit finance to SIIAs. We ask how the benefits provided by SIIAs affect the composition of their revenue sources. In line with benefits theory, we hypothesize that SIIAs with programs focused on social benefits are funded by a higher share of donation income and SIIAs with programs focused on private benefits by higher shares of government income. Data was collected through an international survey. We show that SIIAs with programs that provide social benefits have a higher share of donation income and a lower share of earned income. We also show that SIIAs with programs that provide economic benefits have a higher share of government income and lower share of donation income. This study provides further evidence for the viability of benefits theory. In addition, this study has implications for practitioners. Financial stability is a major challenge for many SIIAs and focusing on the suitable type of funding in relation to their specific benefits can increase their resilience.

References

Nicolopoulou, K., Karataş-Özkan, M., Vas, C., & Nouman, M. (2017). An incubation perspective on social innovation: the London Hub – a social incubator. R&D Management, 47(3), 368-384. https://doi.org/https://doi.org/10.1111/radm.12179

Young, D. R. (2017). Financing Nonprofits and Other Social Enterprises: A Benefits Approach. Edward Elgar Publishing. https://doi.org/10.4337/9781783478293

Authors

• Lucca Nietlispach, Center for Philanthropy Studies (CEPS), University of Basel

• Georg von Schnurbein, University of Basel