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This paper reports on a case study undertaken in a non-profit organisation that provides services for people with disabilities. In response to a changing funding model, introduced by the Australian federal government, management introduced a performance bonus into a subunit of the organisation. This situation raises the question as to how extrinsic rewards are perceived by staff of non-profit organisations as a source of motivation. Following Yin (2003), two sources of data were used in this case study. Data was gathered through a survey and semi-structured interviews. The survey had a number of statements about intrinsic and extrinsic rewards. The responses of the staff from both units were indicated using a five-point Likert scale, and factor analysis was performed with the quantitative data. The important findings of the study are that intrinsic rewards played a significant role in motivation of staff in this non-profit organisation, while extrinsic rewards played a secondary role. This study shows the importance of context when studying the impact of rewards on an individual's behaviour.
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