Sustainability and diversity of national sport organisation revenue

Abstract or Summary

In the current economic environment, financial management is crucial for non-profit organisations. At a time of reduced government support and increasing competition among non-profit organisations, there is pressure to provide more services with fewer resources and adopt commercial approaches to obtain funds. National sport organisations (NSOs), as non-profits, are organisations at the nexus of adopting multiple approaches of funding. NSOs need to acquire funding in a strategic and competitive approach to obtain ongoing sustainable income. The aim of this research is to develop a framework for the study of membership revenue, the main funding stream, of NSOs in New Zealand. This study analysed the concentration risk of multiple revenue sources and the strategies used by organisations to obtain membership income. The membership revenue was evaluated against participation and spectator numbers to identify the dominant strategies used. The findings of this research show the strategies that are used by NSOs to obtain membership funds and provide a comparison for NSOs to follow.