Voluntary contributions and wages in nonprofit organizations

Voluntary work provides a major source of labor for many nonprofit organizations. Consequences of volunteers and paid staff working alongside each other in nonprofits are well documented. This article contributes to this strand of literature and investigates whether the presence of volunteer work influences paid employees' wages in nonprofit organizations. We estimated a multilevel wage equation accounting for personal characteristics of workers and characteristics of nonprofits. The analysis revealed that nonprofit organizations engaging volunteers pay lower wages to their employees. Our findings contribute to the understanding of wage‐setting behavior of nonprofits and improve the methodological approach of empirical research in this field.     

Hospice of the Red River Valley: A nonprofit's response to for‐profit competition

Research of nonprofit versus for‐profit competition points to potential quality and access advantages of the nonprofit, tied to shared community values leading to enhanced social capital and legitimacy, whereas the for‐profit is known for cost and scale advantages. However, the prevailing mode of thinking in mixed‐form competitive contexts urges nonprofits to become “more businesslike” and imitate for‐profit attributes. This qualitative study of a nonprofit organization facing new for‐profit competition illustrates that while it is possible and advisable to learn from for‐profit competitors, it is not necessary or even desirable for the nonprofit to abandon its own unique advantages. Although nonprofits should be increasingly sensitive to cost and scale advantages, they do not have to imitate for‐profit attributes and play the low‐cost game. A competitive response to for‐profit challenges that is carefully crafted and executed based on the unique advantages of the nonprofit organization can truly win the day.     

Unintended? The effects of adoption of the Sarbanes‐Oxley Act on nonprofit organizations

This article investigates the benefits and costs to nonprofit organizations emanating from the adoption of the Sarbanes‐Oxley Act (2002). The act was intended to stem financial malfeasance in the for‐profit sector; nevertheless the article finds that about half the surveyed nonprofits adopted provisions of the act and experienced effects in proportion to the level of adoption. About one in four of the nonprofits attributed benefits of better financial controls and reduced risk of accounting fraud to the adoption of the Sarbanes‐Oxley Act. More than one‐third of the nonprofit organizations reported increased fees for external audit, and about 15 percent cited “reallocation of resources from program to administrative expenses.” This article discusses the unintended positive and negative effects of public policy on nonprofit organizations.     

Factors characterizing the most effective nonprofits managed by volunteers

This article reports on an empirical study of thirty-nine volunteer-managed nonprofit organizations (voluntary associations, not paid staff nonprofits) in a small suburb of Boston. Reputation for effectiveness in achieving goals has been found to be significantly associated with nonprofit nature, governance, and formalization. Many hypotheses suggested by others for nonprofit organizations with paid staff do not seem to transfer to volunteer nonprofit groups. Practitioners can utilize the present findings to improve volunteer nonprofits.     

Reporting Volunteer Labour at the Organizational Level: A Study of Canadian Nonprofits

Volunteer contributions in the production of services are an important resource internationally. However, few countries include volunteer contributions in their national accounts, even though many encourage their populations to engage in volunteering. At the organizational level, many nonprofit organizations using volunteers often limit their input to a footnote in annual reports acknowledging their contribution; few estimate their value in financial terms. As a result, their financial accounts lack information upon which to base decisions affecting the organizations and the communities they serve. Additional information is required to assess the impact of volunteers in individual nonprofits as well as the sector as a whole. This study focuses on Canada, one of the few countries that include volunteers in the national accounts, to examine to what extent nonprofit organizations estimate a financial value for these contributions and include this in their financial statements. This paper reports the results of an online survey of 661 nonprofits from across Canada. In order to understand why some organizations keep records for volunteer contributions and quantify them, two sets of explanatory factors are explored: organizational characteristics and the attitude of the executive director. We find larger organizations were more likely to engage in record keeping and estimating volunteer value, as were organizations with a relatively large group of volunteers and volunteer programs. The attitude of the executive director is important in determining which organizations engage in these practices.     

Nonprofit management practices and work processes to promote gender diversity

Nonprofit organizations have long provided an important space for women to establish roles in public life. Using establishment‐level data on for‐profit and nonprofit organizations, we show that the proportions of women in full‐time and mission‐critical positions are higher in nonprofits. In contrast, for‐profit businesses have more women in part‐time jobs and in jobs that are peripheral to the organizational purpose. We also demonstrate that the greater proportions of women in full‐time and mission‐critical positions in nonprofits are due to the use of inclusive work processes and transparent human resource management practices. Our findings provide evidence to pursue the aspects of nonprofit organizations that expand opportunities for working women.     

The Effects of Individual Risk Propensity on Volunteering

Serving as a volunteer is gratifying and rewarding, but by nature it is also considered a risky decision. Volunteering risk may come from the lack of sufficient training, asymmetric information between volunteers and managers, and the lack of support and protection from nonprofit organizations. Abundant studies discuss volunteering behaviors based on demographics. However, people's decisions are mainly determined by their own preferences rather than demographic differences. Accordingly, this study hypothesizes that individual risk propensity is an important predictor for volunteering behaviors. Using a nationally representative data set, this study finds that risk‐accepting individuals are more likely to volunteer than their risk‐averse peers. Also, the former tend to volunteer more frequently than the latter once they decide to be part of the volunteer labor force. Several managerial implications and volunteer recruitment strategies for nonprofit organizations are discussed.     

The economics of performance management in nonprofit organizations

This article analyzes whether and how private‐sector notions of performance management apply to nonprofit organizations. To this end the author shows that each concept of performance management used in the private sector is based on a specific economic theory of the firm and its environment. Before transferring concepts and tools derived from a certain model of the firm and its environment to nonprofit organizations, one must determine whether the assumptions underlying this model are also adequate for nonprofit organizations. Otherwise, one must first adjust those assumptions and analyze whether the derived concepts and tools are still meaningful in the new context; if not, one must determine how to modify them accordingly. The analysis elaborates on the differences between for‐profit and nonprofit organizations that are important for applying performance management concepts. Moreover, the author discusses the practical implications for the use of balanced scorecards in nonprofits.     

Accounting for the value of volunteer contributions

There is a need for an accounting paradigm that properly illustrates the value that nonprofits generate. Much of that value comes from volunteer contributions, which are significant but for the most part are not included in financial accounting statements, even though our research indicates that they account for almost a third of the value added by these organizations. This article reports the results of two studies related to measuring volunteer value in the accounting of nonprofits and then draws some policy implications from the research. The first study, a survey of 156 nonprofits in Canada, found that although about one‐third of the sample kept records of volunteer hours, only 3 percent included a value for them in their accounting statements. The second study, of nonprofit accountants, found that they did not feel that financial accounting statements properly represented the contribution of their organizations. A series of policy recommendations are presented, including suggestions for revising the regulations of accounting bodies for imputing volunteer value and creating accounting statements that better represent the contribution of nonprofits.     

Using Economic Theory and Research to Better Understand Volunteer Behavior

The literature on the determinants of volunteering for nonprofit organizations is highly complex, and noconceptual model has received general support (Winniford, Carpenter, and Grider, 1997). Researchers often cite the huge economic impact that nonprofit organizations have on the economy as a whole. However, they seldom mention the small but potentially important body of research on the determinants of the supply of volunteer labor that appears in the economics literature. �The purpose of this article is to outline some of the economic arguments used to explain the determinants of volunteering and point out some cases where they may support other theories and concepts concerning the determinants of volunteering.     

Structures,Challenges, and Successes of Volunteer Programs Co‐managed by Nonprofit and Public Organizations

This article presents a mixed‐methods, multicase study and comparison of volunteer programs in US national parks that have evolved, in response to growth and fiscal pressures, to be co‐managed by national park staff and their nonprofit support partners. Findings detail why and how the expanded partnerships were formed; how they operate; challenges they face; ways in which they adhere to, stretch, and depart from theories of nonprofit management, collaboration, and program institutionalization; and the significant—even exponential—volunteer program growth that resulted in each case. These nonprofit?public volunteer program partnerships—at Acadia, Arches and ­Canyonlands, Cuyahoga Valley, Golden Gate, the National Mall, and Yosemite national park sites—employ many standard forms of interorganizational relations, even though in these cases the nonprofits give money to the government organization instead of the reverse. Their volunteer program and management structures also share similar elements because of coercive, normative, and mimetic pressures. At the same time, each volunteer program partnership is a distinct blend of collaboration and management practices because of the unique natural features, climate, needs, adjacent populations, and personalities of leaders at each site. The cases employ innovative strategies to substantially increase the number of staff who lead volunteer programs. Recommendations are offered for nonprofit management research and practice, and findings are instructive for organizations that utilize volunteers either as a single entity or as part of a collaboration.     

Building and valuing global brands in the nonprofit sector

Global nonprofit brands are the world's new “super brands” (Wootliff and Deri, 2001). Nonprofit organizations command unprecedented levels of trust, and nonprofit brand valuations are on par with major international corporations. Leaders and managers of nonprofits face new challenges in the stewardship of their brands. Based on current thinking in nonprofit management and detailed interviews with close to one hundred executives of ten international nonprofit organizations, this article draws strategic lessons on brand building and brand valuation activities of international nonprofits. The multiple roles and stakeholders that global nonprofit brands must address make nonprofit brand building complex and challenging. In particular, differences between advocacy and relief organizations must be explained. Despite the complexity, international nonprofit organizations may have an advantage over for‐profits in leveraging public trust and brand communication. Advocacy organizations in particular successfully link brand and cause to good effect. The valuation of nonprofit brands is a new strategic challenge with significant appeal, but also significant concerns for international nonprofits. In addition to providing nonprofit leaders and managers with a better understanding of brandbuilding activities, imperatives, and best practices in the field, this article outlines the opportunities and threats associated with the valuation of nonprofit brands.     

Reforming Property Tax Exemption Policy in the Nonprofit Sector: Commercialism,Collective Goods,and the Donative Theory

This article develops, critiques, and tests the donative theory, which bases the tax treatment of nonprofits on their production of collective or public goods, through twelve variations for determining property-tax-exempt organizations in five nonprofit industry groups. Using a case study of Indianapolis nonprofits, the results reveal that a significant number of organizations in the nonprofit sector and most industry groups would experience the loss of their property tax exemption. The author calls for nonprofit managers and scholars to give greater future attention to property tax exemption policy in the nonprofit sector.     

Human capital inflow in nonprofits: Entry‐level employees’ sector shift

Although recruitment and retention of qualified employees are some of the biggest challenges in the nonprofit sector, nonprofit organizations must maintain human capital inflow due to its significant impacts on organizational success. Through person‐organization value fit, this paper explores the factors that influence labor shifts from the public or for‐profit sector into the nonprofit sector in the South Korean context. Specifically, the effects on the likelihood of employees switching to the nonprofit sector from the perspective of eight job satisfaction measures and three education–job match measures are investigated. Two groups of employees (those whose career started in the for‐profit sector and those starting in the public sector) are compared. Results indicate that there is substantial variation between the two groups. In particular, intrinsic job satisfaction has completely different effects on those working in the for‐profit sector than on those working in the public sector regarding their likelihood of having experienced an intersectoral shift into nonprofits. The more public employees are satisfied with intrinsic job rewards, especially job reputation, the more likely they are to move to nonprofits. These results suggest that when employees in the public sector are satisfied with intrinsic rewards they tend to pursue greater intrinsic satisfaction in the nonprofit sector. This paper also reports that education–job match is only significant for those whose first job was in the for‐profit sector.     

Past work experience and organizational assimilation in nonprofit organizations

This study compares seven dimensions of organizational assimilation (OA)—familiarity with coworkers, familiarity with supervisors, recognition, acculturation, involvement, job competency, and role negotiation—into nonprofit, for‐profit, and governmental organizations incorporating the role of similarity of past work experience (magnitude of transition [MoT]). An online survey of 294 employee newcomers (tenures of 3 months or less) revealed differences in OA between those entering nonprofits and those entering for‐profit, and governmental organizations. Compared to newcomers entering for‐profit and governmental organizations, nonprofit newcomers reported higher levels of job competency, involvement, acculturation, and role negotiation. Interactions between organization type and MoT from past work to current roles were examined for effects on OA. When MoT was low, nonprofit newcomers were higher on acculturation and involvement than for‐profit newcomers; governmental newcomers with high MoT were significantly higher on role negotiation than for‐profit newcomers. Theoretical and practical implications for nonprofit organizational management, trainers, and nonprofit newcomers are discussed.     

Uncharted Waters: Exploring the Relationship between Strategy Processes and Management Control Systems in the Nonprofit Sector

The way in which strategy and management control combine has been the subject of much research attention, but rarely, within a nonprofit context. This is surprising, not only because of the considerable social and economic impact of this sector, but also in view of the apparent trend toward sectoral convergence in many structural and processual respects, including strategic behaviors and approaches to control. In this article, we explore the extent to which the relationship between management control and strategy, as found in for‐profit organizations, may prevail within a nonprofit context. Based on questionnaire responses from 182 Australian nonprofit organizations, we find that this relationship in nonprofit organizations is similar to that in for‐profit organizations, thereby lending support to the “convergence” argument. We reflect on the reasons for these similarities and advance an agenda for further research in this area.     

Understanding how corporate social responsibility partnership factors influence nonprofit supportive intentions

Public relations literature on corporate social responsibility (CSR) has long detailed the impact of CSR outcomes for corporations. This study seeks to understand how CSR influences the nonprofit partners involved in these initiatives and what types of CSR partnerships lead to nonprofit supportive intentions. This study merges perspectives on organization-public relationships (OPR) with nonprofit management literature. An online 2 (NPO reputation: low vs high) x 2 (partnership duration: short vs. long) x 2 (CSR fit: low vs. high) experiment was conducted. A few key factors emerged in the analysis: Positive nonprofit reputation strongly predicted all OPR outcomes and mission accomplishment. Unexpectedly, the short-duration condition led to more positive outcomes and intentions. Fit did not seem to have a direct effect on outcomes, but the high-fit, short-duration partnership led to increased levels of all outcomes. For mediation, satisfaction and commitment had the strongest indirect effects on nonprofit supportive intentions (donation, volunteer, and word-of-mouth). This study expands the understanding of CSR effects on nonprofit partners, specifically by showing how different CSR partnership types play a role in the relationship-building efforts of nonprofits. Additionally, demonstrating how mission accomplishment can strengthen these relationships helps to disentangle the unique position of nonprofits in CSR, whose reputation and mission are at stake.     

The Relationship between Provision of Membership Benefits and Fulfillment of Representational Roles in Nonprofit Advocacy Membership Organizations

This article explores the ways nonprofit advocacy membership organizations can manage their resource dependence on members and fulfill the organizations' representational roles, focusing on the provision of membership benefits. Membership organizations rely on financial or other resources from members and thus are constrained by them. For a nonprofit that aims to primarily speak for members, constraints by members may help to focus organizational attention on members' interests. Contrarily, for a nonprofit that aims to mainly represent broader constituents, members' constraints may hamper an organization's ability to advocate for broader constituents because members do not necessarily share the same policy goals with broader constituents. The provision of membership benefits can be a useful strategy for organizations to fulfill their representational roles and to satisfy and engage members, because people often join an organization to enjoy certain membership benefits. For an empirical analysis, this study collected a large‐scale data set through web and mail surveys of nonprofit advocacy organizations across the United States. The mixed‐mode surveys achieved a 57.5 percent response rate (729 responses). The survey and regression analysis results show that member‐serving nonprofits providing members with opportunities to participate in advocacy work are more likely to represent members' interests directly. Although broader constituency‐serving nonprofits tend to prioritize members' opinions, these organizations are more likely to adhere to the mandates of broader constituents when providing selective material membership benefits. However, when providing purposive membership benefits, these nonprofits are more likely to represent members' opinions.     

Managerial Control and Strategy in Nonprofit Organizations: Doing the Right Things for the Wrong Reasons?

This article presents the second stage of a study that engages with the debate that has occurred within the nonprofit literature about the propensity and relative merits of nonprofit organizations adopting for‐profit approaches to management. Specifically, this qualitative investigation examines the ways in which nonprofit organizations use management control when implementing their chosen strategies. Although this topic has been the subject of considerable attention in the management accounting research, it has rarely been explored within a nonprofit context. This is surprising not only because of the considerable social and economic impact of this sector, but also because of the apparent trend toward sectoral convergence in many structural and processual respects, including strategic behaviors and approaches to control. Based on interviews with CEOs and senior executives in thirty‐two Australian nonprofit organizations, we find that the relationship between strategy and control in nonprofit organizations is similar to that in for‐profit organizations, but quite different reasons underlie nonprofit organizations' exercising of management control.