Examining the Relationship Between Volunteerism and Revenue Streams in Youth-Centered Nonprofit Organizations: An Analysis of Fundraising Revenue, Program Service Revenue, and Government Grants

This study examined the relationship between volunteerism and revenue streams in youth-centered nonprofit organizations (NPOs) in the United States. Utilizing financial data from IRS Form 990 filings spanning 2014 to 2023, the research analyzes how the number of annual volunteers impacts three primary revenue sources: donations, program service revenue, and government grants. Fixed-effects regression models are employed to evaluate these relationships across the full study period and in pre- and post-COVID-19 subsamples. The study also investigates the association between volunteerism and revenue diversification using the Herfindahl-Hirschman Index (HHI). Findings reveal a positive and statistically significant relationship between volunteer involvement and donation revenue, as well as program service revenue, particularly when log-transformed to address data skewness. Conversely, a negative association is observed between volunteerism and government grant revenue. The analysis of revenue diversification indicates that organizations with higher volunteer engagement tend to have more concentrated revenue portfolios. These results suggest that while volunteerism can enhance certain revenue streams, it may also lead to increased reliance on fewer funding sources. The study contributes to the understanding of how volunteer resources influence financial outcomes in youth-centered NPOs and highlights the importance of strategic volunteer management for organizational sustainability.