DOI: 10.3390/admsci16100472 ISSN: 2076-3387

Pay What You Want Pricing Architectures in Nonprofit Organizations: A Qualitative and Configurational Study of Long-Term Implementation

Berit Sandberg, Julia Saurer

Pay what you want (PWYW) pricing is usually examined through isolated design features and short-term effects on payment behavior. This study investigates how nonprofit organizations configure and stabilize PWYW as an ongoing mission-related management practice under financial uncertainty. Drawing on ten German private nonprofit organizations, it combines qualitative case analysis, empirically grounded typology construction, and multi-value Qualitative Comparative Analysis (mvQCA). The analysis identifies six pricing architectures that differ in scope, zero-payment openness, price guidance, payment timing, framing, and social interaction. Organizations contain risk through safeguards operating at four layers: scope of application, payment obligation, payment-amount guidance, and staff-mediated intervention. Different combinations preserve varying degrees of buyer discretion and support sustained implementation. Architecture choice is not determined by industry, funding logic, or revenue stream alone. Comparable contextual conditions support different architectures. The mission-related rationale for adopting PWYW provides the clearest pattern, indicating that the purpose assigned to buyer discretion shapes how it is designed, particularly when PWYW is intended to stimulate reflection on value. This study contributes to strategic nonprofit management by conceptualizing sustained PWYW implementation as a configurational pricing architecture through which organizations operationalize mission priorities while containing financial risk.