Determinants of executive compensation in small business development centers

We develop and test a model of nonprofit executive compensation based on theories of organizational science, economics, and agency theory. Our sample consisted of 114 directors of small business development centers in the United States. Consistent with our model, we find significant effects for human capital, organizational size, and organizational affiliation. We find tentative support for a significant pay‐for‐performance relationship. We find that when education, tenure, size, performance, and affiliation are held constant, female executives are compensated significantly less than male executives.     

Scarce as hen's teeth: Women CEOs in large nonprofit organizations

This study examines an underlying mechanism behind the gender gap in nonprofit executive leadership, focusing on the link between the representation of women on governing boards and the hiring of female CEOs. The analysis of 340 human services organizations with gross receipts greater than $10 million in GuideStar's database reveals that organizations where women make up between one third and half of the board are more likely to have a female CEO compared to organizations where women account for less than one third or a majority of the board. The findings suggest that nonprofit organizations are more likely to hire a female CEO when women constitute a “substantial minority” of the governing board.     

Understanding Nonprofit Advocacy in Non-Western Settings: A Framework and Empirical Evidence from Singapore

Research on nonprofit advocacy in non-Western settings is still rather limited. In this article, we address this limitation by examining the advocacy practices of nonprofit charitable organizations in Singapore, a non-liberal democratic city-state in Southeast Asia with a history of colonial rule. We ask the following questions: What are the key environmental and organizational factors that influence the scope and intensity of advocacy activities of nonprofit organizations? In particular, what is the effect of the political context on the advocacy strategies and tactics among these organizations? To answer these questions, we present a three-factor explanatory model of nonprofit advocacy incorporating cause, capacity, and context. The research methodology entails a survey of nonprofit executives from a random sample of Singapore human and social service organizations. Our findings shed light on how the various aspects of the political context—perceived opportunities and threats from government intervention and dependence on government funding—shape nonprofit advocacy in a non-Western setting.     

Gender,Occupation, and Promotion to Management in the Nonprofit Sector

Although one can assume the work values within nonprofit organizations promote gender equality in promotion decisions, there is preliminary evidence that in the nonprofit sector women are underrepresented in higher management positions. Whereas the mechanisms resulting in underrepresentation of women in management have been studied extensively in for‐profit organizations, little is known about these mechanisms in nonprofit organizations. Is gender in nonprofit organizations—even given the underlying values of these organizations—an impediment to attaining a management position? This article presents a case study of employment patterns within the Dutch section of the humanitarian INGO Médecins Sans Frontières and focuses particularly on the effects of gender and occupation on transitions to management. The case study organization represents a “critical case” because the nature of this organization's work environment can be expected to result in a relatively high percentage of women in management. Employee records (N = 2,247) were analyzed using event history models. We found that women made the transition to management less rapidly than men, even when controlling for factors like age, previous work experience, and nationality. However, gender differences were completely explained by occupation. Those employees in female‐dominated occupations (in this case, medical personnel such as nurses) had a lower promotion‐to‐management rate than those in male‐dominated occupations (in this case, nonmedical personnel such as financial officers), irrespective of their gender. This case study highlights the importance to nonprofit management research of studying the effects of occupational sex segregation on promotion.     

The nonprofit leadership deficit: A case for more optimism

Recent headlines claim that a looming nonprofit leadership crisis will soon be precipitated by retiring baby boomers. Analysis of baby boom demographics, using national census data on the age distribution and other demographic characteristics of top leaders by sector, confirms the aging nonprofit workforce. However, the issue of whether the aging workforce portends a nonprofit leadership crisis, when analyzed within a theoretical framework of supply and demand in the market for nonprofit executives, reveals flaws in most commentaries about the leadership crisis. Workings of the labor market and nonprofit organizations themselves suggest trends that could be expected to affect labor supply and demand and mitigate a leadership deficit. Reasonable—and likely—market and organizational adjustments, including higher executive pay, increased labor force participation of older workers, skill acquisition of younger workers, possible consolidation of nonprofit organizations, board and volunteer skill sharing, and even venture philanthropy, can be expected to moderate the shock of baby boom retirements, much in the way that schools, job markets, and housing markets have accommodated the movement of this “bulging” generation through earlier decades of their lives.     

Exploring Nonprofit Executive Turnover

Projections of executive turnover loom over the three sectors with aging baby boomers filling many executive‐level positions, and research into causes, outcomes, and processes of turnover are timely inquiries. Yet, scholarly attention into nonprofit executive turnover has been limited to date and has not sufficiently examined actual turnover events. To help address this gap, forty nonprofit organizations that had recently experienced executive turnover were selected from a national random sample, and the current executives participated in an interview. This qualitative data was analyzed to identify factors and dynamics that define nonprofit executive turnover. These findings both confirm practical knowledge and offer new insights relevant to future research and practitioners alike.     

Called to order: A board president in trouble

This is a fictionalized case based on real events. It is intended as a teaching tool to stimulate discussion about procedural issues in nonprofit governance; board roles and responsibilities; communications; and relationships between boards, chairs, and executives, particularly in the context of smaller organizations. It is meant to support sessions on nonprofit boards and governance in introductory courses on nonprofit management or for use in workshops with new or less experienced executives and board members. Set in an organization engaged in cultural exchange, the case can be used in introductions to nonprofit management, arts administration, or international nongovernmental management.     

The Views of Nonprofit Executives on Educating Nonprofit Managers

Extraordinary nonprofit-sector expansion has produced organizations with complex missions and operations, and the managers responsible for their effectiveness require adequate preparation. Although no single degree program stands out as the clear preference of nonprofit executives, we propose that certain organizational characteristics are associated with the preference for specific degrees.     

Female executives and the glass ceiling in Spain

This paper examines the findings of a survey of the personal, educational and professional profiles of a sample of male and female senior executives of companies operating in Spain. The women were found to be younger; they had fewer children, resorted to more domestic help, and earned less than the men, although they often had higher qualifications. Yet cultural patterns and institutional barriers still prevent them from making full use of their capabilities. In spite of recent legislative efforts to promote gender equity at work, more than nine out of ten senior executives are still men.     

Organizational Crisis Resistance: Examining Leadership Mental Models of Necessary Practices to Resist Crises and the Role of Organizational Context

This study explores which governance practices nonprofit leaders consider necessary to avoid organizational crises. Further, it explores whether these leadership mental models of crisis resistance depend on the organizational context. This helps determine whether practical learning points are organization specific or can be applied broadly. With a multilevel sample of 304 leaders from 44 Belgian nongovernmental development organizations, an exploratory path analysis reveals that nonprofit leaders consider continuous improvement, as a governance practice, particularly relevant for effective organizational crisis resistance. A multilevel analysis also shows that variations in leadership mental models cannot be explained by the organizational variables used in this study (organizational size, leadership group size, operational activities, and languages in the leadership group). This article concludes with a discussion of consequences for further research.     

Motivations to Pursue Accreditation in Children's Mental Health Care: A Multiple Case Study

Accreditation is a growing, worldwide phenomenon that has spread to a range of industries and fields, including nonprofit social services and mental health care. Thousands of organizations are accredited, but it is not known what is driving the growth of this phenomenon. Using a multiple case study design, this exploratory study aimed to understand children's mental health agencies' motivations to pursue accreditation. In‐depth interviews, focus groups, document reviews, and limited observations were conducted at five children's mental health agencies that had recently undergone or were undergoing the Council on Accreditation process. Agencies were influenced by external factors, such as policies that require accreditation, wanting to assert their positions in the field, and the need to increase funding opportunities. Other factors were internal, related to agency leadership using accreditation as a platform for change and agencies' genuine intent to improve services. Implications for agencies, accreditors, and future research are offered.     

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.     

Stakeholder Performance Measurement in Nonprofit Organizations

According to recent findings, nonprofit organizations should address the relationships of nonprofit service quality, satisfaction, loyalty, and organizational identification when planning and evaluating donor surveys. This article presents a donor satisfaction barometer that can be used to gain insights into the strength of these key relationships and thereby establish a basis for calculated relevant indices. With such indices, nonprofit organizations can compare stakeholder performance over time and benchmark themselves against other organizations. Data from 2,599 blood donors to one section of the German Red Cross, collected through the proposed donor satisfaction barometer, show that service quality drives satisfaction, and donor satisfaction and organizational identification both exert significant positive effects on donor loyalty. Therefore, nonprofit organizations should use a combined strategic approach that improves both donor satisfaction and organizational identification to increase donor loyalty. The successful application of the donor satisfaction barometer also suggests its value for other nonprofit industries and offers important insights for managers.     

Understanding the Compensation of Nonprofit Executive Directors: Examining the Influence of Performance and Organizational Characteristics

In this study we aimed to provide a better understanding of executive compensation in nonprofit organizations. We examined factors including organizational size, market, subsector, organizational type, staffing level, and organizational performance as potential influences driving variation across the nonprofit sector. The models utilize data on the population of nonprofit organizations required to file Form 990 returns with the Internal Revenue Service in order to broadly examine compensation. The results indicate associations between various measures of performance and compensation in nonprofit orga‐nizations and also suggest that different types of nonprofits may be sensitive to different measures of performance.     

Organizational innovativeness and its determinants in South Korean nonprofit human service organizations

This study compares the level of organizational innovativeness and its determinants in different types of nonprofit human service organizations. Based on theoretical conceptualizations of organizational innovation, it was hypothesized that community service organizations (CSOs) would be more innovative than residential service organizations (RSOs), and determinants of organizational innovation (such as organizations' characteristics, internal and external properties, and executive leadership) would influence innovativeness. Data from a survey of two types of human service organizations in South Korea (127 RSOs for children and 220 CSOs) revealed that the level of innovation in both types of organizations was not significantly different. The determinants of decentralization and formalization showed significant impacts on innovativeness in CSOs. Decentralization also had a significant positive effect on innovativeness in RSOs. However, executive leadership was a significant determinant of organizational innovativeness in CSOs only. Based on these results, administrative implications are suggested for the facilitation of organizational innovation in nonprofit human service organizations.     

Transformational leadership,organizational culture,and innovativeness in nonprofit organizations

This is an exploratory study of leadership, organizational culture, and organizational innovativeness in a sample of nonprofit human service organizations: Associations of Retarded Citizens. Although leadership has been held out as one of the most important predictors of innovation, this study found it was not correlated with organizational innovativeness. Examination of the relationships between leadership and cultural variables provided some alternative explanations for this finding. Positive relationships among transformational leadership, organizational values, and cultural consensus (degree of agreement among employees on those values) indicate that leadership practices employed in this sample created strong cultural consensus around values that may inhibit innovation. These findings suggest that examining the link between leadership and organizational culture is important for understanding how leadership and innovation are related. This article sets out practical implications, based on the results of the study, that may help nonprofit managers create workplaces supportive of innovation.     

Illuminating gendered organization assumptions

One key to why organizations have been less successful at integrating a work–family agenda into their organizational cultures is that workplaces have failed to consider how gender assumptions influence workplace practices, policies and cultures. This paper presents a theoretical framework for considering how gender role assumptions have prevented organizational attempts to become family friendly. Further, this paper uses an organizational case study to illustrate this point. Specifically, a theory of gendered organizations is used to frame an analysis of 30 employee interviews. Data suggest that gendered organizational assumptions inherent to several workplace policies and practices contribute to employee strain associated with negotiating the demands of life on and off the job. Further, the findings show that these gendered organizational assumptions prevent organizations from developing workplace cultures responsive to employees' work, family and personal needs. A brief review of the interdisciplinary work–family field is presented, followed by a discussion of gendered organizations. Then, using interview data collected from management and ‘front‐line’ female and male workers employed at a municipal government, this paper examines how workplace practices, presumably gender neutral, affect employees and the organizational culture in which they work.     

An Industry Fields Approach to Isomorphism Involving Australian Nonprofit Organizations

Structural similarity or isomorphism is expected among organizations in the same organizational field. Such a field matures with increasing interaction among the organizations in it. Using a random sample of Australian organizations, this paper compares isomorphism among nonprofit organizations regardless of industry with that among organizations in the same industry regardless of legal form. The results point to isomorphism especially in the healthcare industry, regardless of legal form. This finding adds weight to earlier research that questioned the operation of the nonprofit sector as an organizational field with enough interaction to produce isomorphism.     

From evidence to action: Applying gender mainstreaming to pay gaps in the Welsh public sector

Progress on reducing gender disparities remains painfully slow, despite efforts to identify the determinants of gender pay gaps and specify size and shape. Recent studies highlight the need for a more nuanced account of the way that public policy shapes organizational responses and insights into the types of organizational practices that diminish pay disparities. In response, this research reports on an action research intervention in three large Welsh public organizations, subject to a unique statutory equality duty. Data demonstrate how an evidence‐based gender mainstreaming approach facilitated the development of a ‘no blame’ strategy, which legitimized organizational proactivity through collaborative and empowering change management processes. The research contributes to the study of gender pay gaps by demonstrating that gender mainstreaming, with facilitative local conditions and supportive public policy, shapes action on gender segregation, with particular success in women's low‐paid employment. Conclusions highlight theoretical and policy implications arising from the research.