Table 3.
Costs and benefits of Appended and Blended forms of business–nonprofit hybrid organizing.
| Appended form | Blended form | |
|---|---|---|
| Benefits | Material: Reliable, large-scale financial support from (internal) business activities; expanded pool of potential resources through leveraging existing business networks (including clients, employees, contractors, and executives’ personal networks); in-kind support (e.g., business employee volunteer time, “back-office” support). | Material: Potential to rely on a secure source of internally generated revenue from retail activities, reducing reliance on competing for grants; expanded pool of externally sourced support through leveraging organization members’ cross-sectoral networks (e.g., board members’ networks in the business community). |
| Relational: Reputational halo of association with credible business helps broker implementing relationships locally; potential to win legitimacy through a distinct social purpose unit that conforms to a recognizable nonprofit form. | Relational: Appeal to some external audiences (e.g., business community, social entrepreneurs, nonprofit partners) on the basis of an atypical, innovative form, committed to social good but with the potential to be self-sustaining. | |
| Costs | Material: Close association with wealthy business may deter other funders; over-reliance on internal funding can stymies fundraising capacity; difficulties prioritizing social purpose over business needs (e.g., for back-office support). | Material: Startup nature means revenue limited at start and covering costs relies on the successful growth of revenue/retail business. |
| Relational: Being embedded within established business can compromise the ability to appear to conform to the norms of the nonprofit sector (e.g., due to the dominance of language, practices, and processes characteristic of the business sector). | Relational: Non-conformity to either a “pure” business or a nonprofit form (neither regular grocers nor recognizable food charities) limits appeal to some external audiences, e.g., target consumers. |