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A Sea Change in the Social Sector - Examining Earned-Income Ventures and Entrepreneurial Nonprofits in Rhode Island

Nonprofits across the nation are increasingly launching earned-income ventures to support their social missions. Even though this is not a new strategy for many nonprofits, for the sector as a whole it is a fundamental shift from traditional sources of revenue. This study identifies and evaluates significant factors associated with nonprofits operating earned-income ventures in Rhode Island and compares these results to data collected for a recently published national study. New data collected from a web-based survey of over 325 Rhode Island nonprofits is analyzed along with data from over 375 nonprofits in a national sample. This study also examines the types of earned-income ventures organizations are operating, the perceived impact, how nonprofits define themselves as “entrepreneurial,” and the reasons why some organizations have never operated ventures. Insights from Rhode Island nonprofit leaders, academics, and funders are also included in this mixed-methods approach, to help understand the motivations of nonprofits launching and operating earned-income ventures. The findings suggest that Rhode Island organizations are operating earned-income ventures at a rate of three times the comparable national sample. Additionally the majority of ventures are related to the organizations’ social missions, and the impacts are overwhelmingly positive.