Does Nonprofit Commercialization Affect Public Donation Intentions: An Experimental Study on Public Trust and Organizational Signaling

ABSTRACT In the process of development of nonprofit organizations, the concept of commercialization is both controversial and complex. While several studies have examined the relationship between nonprofit commercialization and donations, most focus on the structural analyses of revenue streams. Thus, the mechanisms through which commercialization influences public donation intentions have remained underexplored. Drawing on signaling theory, this study constructs a theoretical framework to investigate the impact of nonprofit commercialization on the public's donation intentions. Based on an online experiment involving 724 participants, the findings show that the commercialization of nonprofit organizations significantly reduces the public's trust in them, and thus weakens their intentions to donate. Further analysis reveals that organizational transparency and reputation can effectively mitigate the negative effects of commercialization. This study not only deepens the understanding of the relationship between nonprofit commercialization and public donations but also offers theoretical and practical guidance for balancing commercialization strategies with public interest from a signaling governance perspective.