from The Nonprofit Quarterly:

Social Enterprises Linked to Poor Performance in Nonprofits

A new study by researchers at the Wilson Center for Social Entrepreneurship at Pace University, “Social Enterprise: Innovation or Mission Distraction?” has found that nonprofits who run income producing businesses tend to short change those they are meant to serve by “focusing on money making schemes.”

… The study found that nonprofits that engage in unrelated business activities often run less efficient organizations than their peers. “As income from peripheral businesses went up, the share of a contributed dollar that went to actual services went down,” according to the report.