Accountability in organizational life: Problem or opportunity for nonprofits?

This article reviews the notion of accountability as an intrinsic experience in daily organizational life and contrasts it with the more traditional construct of accountability as an external control or monitoring device. The concept of “felt responsibility” can provide an opportunity to enhance the effectiveness of nonprofit organizations. Both research and the author's field experiences in nonprofit settings suggest how nonprofit leaders and managers can use felt responsibility to help individuals act with accountability to themselves and to others. The concept of “conversation for accountability” poses a pragmatic opportunity for nonprofits in particular to turn the current environment of finger pointing and aggressive monitoring into an enabling organizational practice that benefits both nonprofit members and their clients or constituencies.     

“To be a business and to keep our humanity”

In recent years, the political nature of nonprofit funding has been well established, with research focusing on increased demands for accountability (Eikenberry and Kluver, 2004), difficulties in selecting accountability measures (Reed, Jones, and Irvine, 2005), and the shift from organizational mission that can occur while trying to adhere to funding requirements (Adcroft and Willis, 2005; Parsons and Broadbridge, 2004). This article examines the dynamics between a funder and the nonprofit organizations it funds within an evolving accountability process. Specifically, we use qualitative methods to examine the negotiations between the funder and the nonprofits. Both sides in the funding relationship face tensions as they attempt to work within the constraints of this specific funding regime while trying to maintain their focus on social justice outcomes.     

Organizational Culture in Civic Associations in Russia

The organizational culture of nonprofit organizations is affected by the context in which they are embedded. Based on a qualitative study of local civic associations in Novosibirsk, Russia, this article illustrates how nonprofit organizational culture has been shaped by historical and contemporary social and cultural conditions. The fluid situation for civil society in Russia has generated varied organizational culture across nonprofits. Interview data reveal different value orientations, distinct group identities, and different images of the ideal civic association: as a social establishment, as an outlet for self-expression, as a network of experts, or as a social startup. This resulting diversity of organizational culture has implications for the potential for partnerships among nonprofits, between nonprofits and government, between nonprofits and businesses, and also for the organizational survival of nonprofits in this setting.     

The trickle‐down effect of ethical leadership in nonprofit soccer clubs

Nonprofit soccer clubs are currently facing many ethical challenges, such as abuse, doping and match fixing. While research suggests that organizational (board) ethical leadership may be effective to tackle these ethical issues, empirical support in the context of sport remains limited. Drawing on the perceptions of a sample of nonprofit soccer players (n = 438) and coaches (n = 106), we indicate that the coaches play an important mediating role regarding the associations between board ethical leadership and ethical climate. The theoretical underpinnings of ethical leadership—formed by social learning theory and social exchange theory—and the social distance between the board and the players in nonprofit soccer clubs provide support in this regard. In sum, our results demonstrate that the influence of board ethical leadership in nonprofit soccer clubs partly trickles down to the players via coach ethical leadership. Finally, practical implications for nonprofit soccer club management are discussed.     

Serve or Conserve: Mission,Strategy, and Multi-Level Nonprofit Change During the Great Recession

Change is frequently afoot in the nonprofit sector, both in the wider institutional environment in which nonprofits operate and within the organizations themselves. Environmental transformations—funding sources, supply and demand for collective goods, and administrative norms—create the circumstances in which organizations operate. Internally, change involves the alteration of goals, practices, and personnel. To explore how multiple aspects of change intersect across levels, we ask how organizations’ practices influence their experience of and reaction to changes in the environment. Turning open systems theories inside out, we argue that internal planning, routines, and missions give rise to organizational mindsets that imbue evolving environmental circumstances with meaning. We illustrate our argument using a unique longitudinal dataset of 196 representative 501(c)(3) public charities in the San Francisco Bay Area from 2005 to 2015 to assess both accelerators and obstacles of change. Empirically, we investigate predictors of organizational insolvency and the ability to serve constituents in the wake of the Great Recession. We find that strategic planning decreases the likelihood of insolvency whereas an orientation toward the needy increases spending. We conclude with our contributions to understanding of multi-level organizational change and nonprofit strategy.     

Charity Watchdogs and the Limits of Information-Based Regulation

Transparency concerns and the concomitant accountability challenges have motivated policy and legal scholars to explore information-based regulatory approaches. We examine their usefulness in the context of the nonprofit sector which tends to show signs of governance failure. Although nonprofits are required by law to disclose information on fund use, nonprofit donors face difficulties in accessing and interpreting information about how nonprofits are deploying resources. Charity watchdogs make this information available to donors in a convenient format. In theory, this should allow donors to reward nonprofits that devote resources to service delivery and to punish those that are less careful about controlling overheads. To test the relationship between charity ratings and donations, we examine 90 nonprofits in the state of Washington for the period 2004–2007. Drawing on ratings data provided by Charity Navigator, we find that changes in charity ratings tend not to affect donor support to these nonprofits. We explore this statistical finding via interviews with 10 charities located in Washington State. Supporting the statistical results, we find that charities believe that donors tend not to systematically embed ratings in their donation decisions. Instead, they believe that donors assess nonprofits’ effectiveness and trustworthiness via other means such as familiarity, word-of-mouth, or the visibility of the nonprofit in their community. In sum, the policy challenge is to provide information which users desire such as organizational effectiveness as opposed to basic fund allocation in the case of non-profits. What matters for policy efficacy is not how much information is provided but of what type.     

Networking Modes and Performance in Israel's Nonprofit Organizations

The present article examines the relationship between networking modes and performance for 138 nonprofits in Israel. We draw upon the bridging and bonding concepts and social exchange theory and introduce the sharing and consulting networking modes to predict performance in terms of organizational growth in resources. We suggest that differences in networking modes (1) reflect variations in organizational size and age and (2) affect organizational growth in resources. We show that (1) the consulting networking mode is more frequent among managers of smaller and younger nonprofits, (2) sharing is characteristic of managers in older and larger nonprofits, (3) sharing has a strong effect on organizational growth, and (4) the sharing and consulting modes are better predictors of organizational performance than those of bonding and bridging. The results indicate that nonprofit growth in organizational resources is possible with networking when managers aspire to higher involvement in the networking process due to the scope and extent of goals.     

Elements of Capacity in Youth Development Nonprofits: An Exploratory Study of Urban Sport for Development and Peace Organizations

Organizational capacity is often discussed among nonprofit practitioners and scholars. Yet, empirical research employing a multidimensional capacity framework remains scarce in the nonprofit literature (Andersson et al. in VOLUNTAS Int J Volunt Nonprofit Organ 27(6):2860–2888, 2016). Using a qualitative research approach, we explored capacity in a specific segment of youth development nonprofits—sport for development and peace (SDP). We were guided by three research questions: (1) what are critical capacity elements of SDP nonprofits? (2) how do these capacity elements influence the ability of SDP nonprofits to achieve their desired goals and objectives? and (3) what are the capacity needs of SDP nonprofits in the USA? Findings from in-depth interviews with leaders of 29 organizations contribute to the development of theory on nonprofit capacity by providing a more nuanced understanding of capacity strengths and challenges related to broader nonprofit goal achievement. For example, paid staff, revenue generation, and internal infrastructure emerged as critically more important for capacity in this context. Practical and theoretical implications are further discussed.     

Explaining Trust in Canadian Charities: The Influence of Public Perceptions of Accountability,Transparency, Familiarity and Institutional Trust

Public trust of nonprofits can augment social benefits of the nonprofit sector by enhancing engagement of the general population in the sector. This study analyzed cross sectional data collected from a random sample of Canadians (n?=?3853) to test the effects of respondents’ perceptions of financial accountability, transparency, and familiarity of charitable nonprofits, along with the effects of trust in key institutions on their general trust in charitable nonprofits. Results show that each factor (except for trust in government institutions) has a significant effect on the level of trust respondents had in charitable nonprofits. The study helps advance our understanding of what contributes to trust in charitable nonprofits among Canadians and offers suggestions on how nonprofits can garner greater trust with the population.

     

Creating positive change in community organizations: A case for rediscovering Lewin

As nonprofits, especially those with a community mission, pursue developmental goals, they may benefit from various planning and analytical tools. This article explores an application of Kurt Lewin's planned change model to an assessment and revisioning process undertaken by a community‐based organization, indicating the ongoing usefulness of Lewin's work in the nonprofit sector. Using a case study approach, we examined the actions embarked on by the organization to address decreased funding and client losses. The Lewin model is overlaid to illustrate its value in structuring organizational decision making and development. The model is a three‐step process of unfreezing from old practices, moving and changing the organization into new directions based on formally identified needs, and refreezing into more effective organizational modes. When combined with other standard practices such as strategic planning, Lewin's model provides a practical and theoretically insightful tool for nonprofits wishing to refine their missions and programs and engage in successful organizational change.     

Accounting for Social Value in Nonprofits and For‐Profits

The authors argue that social value can serve as a bridge between the nonprofit and for‐profit sectors. They further propose that social value is not simply an abstract concept but can be measured by applying social accounting methods. The authors argue that nonprofits are founded on a social mission but that traditional accounting approaches do not properly assess their social products. They illustrate the centrality of social value, both to nonprofits and for‐profits, in two ways: (1) a discussion of for‐profit firms that behave much like nonprofits and (2) an application of the social accounting model. The authors discuss two types of firms: (1) for‐profits whose shares are held in a trust and therefore operate much like corporations without shareholdersor like nonprofits and (2) for‐profits whose owners do not exercise the rights associated with their property. They then apply a social accounting model to nonprofit employment training programs to illustrate how the inclusion of social variables changes the assessment of an organization's value. They conclude with a discussion of a social accountability framework that embraces both nonprofits and for‐profits.     

Conducting and utilizing evaluation for multiple accountabilities: A study of nonprofit evaluation capacities

This article combines the evaluation capacity building and nonprofit accountability literature to examine how nonprofits use evaluation data to address stakeholder expectations. Our study investigates how staff competency, technological resources, learning climate, and strategic planning influence a nonprofit's ability to demonstrate upward, lateral, and downward accountabilities. Results indicate different combinations of evaluation capacities matter more for particular stakeholder groups. We argue a more integrative nonprofit accountability requires that managers and staff know how to utilize evaluation results for internal and external audiences. Nuances between specific evaluative capacities and their influences on multiple accountabilities suggest several implications for practice.     

Strengthening Social Protection in East Asia,Mukul G. Asher and Fukunari Kimura (Eds.)

Few studies have analyzed for-profit and nonprofit differences in the home health care sector. Using data from the National Home and Hospice Care Survey, we found that patients in nonprofit agencies were more likely to be discharged within 30 days under Medicare cost-based payment compared to patients in for-profit agencies. However, this difference in length of enrollment did not translate into meaningful differences in discharge outcomes between nonprofit and for-profit patients, suggesting that—under a cost-based payment system—nonprofits may behave more efficiently relative to for-profits. These results highlight the importance of organizational and payment factors in the delivery of home health care services.     

How does a board of directors influence within‐ and cross‐sector nonprofit collaboration?

Board members play a significant, yet largely unexamined, role in nonprofit collaboration. Processes, such as finding prospective partners, creating common ground with a partner, and establishing appropriate collaborative governance implicate nonprofit board members. In contrast to the scholarship of the role of interlocking directorates as potential networks for nonprofit collaboration, this paper examines the role of board members' social and human capital on nonprofit collaboration with other nonprofits, businesses, and government agencies. Drawing on online survey data from 636 nonprofit organizations, this paper finds that board social capital—but not board human capital—is positively related to the presence and number of within‐sector and cross‐sector nonprofit collaboration. However, board human capital enhances nonprofit‐government collaboration, when board social capital is also high. The results provide a novel perspective in nonprofit collaboration and board management research.     

Using Social Network Analysis to Enhance Nonprofit Organizational Research Capacity: A Case Study

As donor agencies become more specific in funding requirements, research that can demonstrate the collaborative efforts of a nonprofit agency with its organizational neighbors and how those efforts pay off in terms of capacity and provision of services is highly useful. Recognizing these benefits, a local funding agency in Virginia commissioned a study to look at the ways in which social network analysis (SNA) can enhance the data resources available to nonprofits for funding and grant requests. In this article, we present a case study of a network of 52 nonprofit organizations to illustrate the viability of SNA in terms of funding and research needs specific to nonprofit organizations. We discuss the outcomes of the case study in terms of how the visual and metric outputs of SNA can be used by nonprofits to enhance the accomplishment of their organizational missions and strengthen their grant requests.     

A contingency approach to nonprofit governance

A number of contingency factors may be relevant for effective nonprofit organizations and their boards. Although all boards must fulfill certain critical roles and responsibilities, strategic choices can be made about adopting different governance configurations or patterns. These choices can be meaningfully informed by understanding organizational contingencies such as age, size, structure, and strategy—and, even more important, by external contingencies and environmental dimensions such as degree of stability and complexity. This article extends or layers contingency thinking beyond its traditional focus on an alignment between the external environment and the organization's structure to focus as well on the alignment of the organization's governance configuration with its structure and environment. Structural contingency theory in general, and specifically within nonprofits, is reviewed. Two cases are presented of organizations that used an approach based on contingency theory in an action research process to examine and change their governance configurations. The steps they followed may help other nonprofits adapt their governance structures and practices and fulfill their responsibilities for board assessment and reflection.     

Accountability and nonprofit organizations: A historical perspective

American nonprofit organizations first developed in the nineteenth century as the organizational instruments through which Americans put their First Amendment freedoms of religion and political belief into practice. For one hundred years American nonprofits were held accountable by relatively small, compact communities of people who shared religious or other highly defined beliefs and values. In the twentieth century, many nonprofit organizations have grown very large and have adopted a scientific, general-service-to-the-community ethos. The legal, institutional, and cultural ideas and practices through which traditional nonprofits were, and are still, held accountable no longer seem to work equally well for the larger, more universal nonprofits of the late twentieth century.     

Female leaders and board performance in member‐serving nonprofit organizations

Despite an active stream of “good governance” research, there is not yet much nonprofit scholarship examining how the gender composition of a board or its leadership relates to board performance. This article helps to fill this gap, focusing on the governance practices of US‐based nonprofits serving a domestic or international membership. A structural equation model finds that the presence of female leaders relates to the performance of nonprofit boards both directly and indirectly through these leaders' presumed influence on board characteristics and operation. This research advances the field by empirically testing a longstanding theory that board performance is both multidimensional and contingent on the market and labor environment, organizational capacity and other characteristics—in this case, gender dynamics. We find there are some positive relationships between female board leadership and clearly defined measures of board performance. These findings also suggest that a strategy to balance a board's gender may serve many nonprofits, but gender representation works in tandem with other board characteristics.     

Human resource management,employee engagement,and nonprofit hospital performance

Human resource management (HRM) has been shown to impact organizational performance, but more research is needed on particular human resource (HR) practices in nonprofits and their effect on performance. In this article, we explore one HRM practice argued to influence performance, employee engagement in decision‐making, examining whether involving staff at different levels of a nonprofit affects nonprofit organizational performance. Drawing on data from a 2011 study of nonprofit hospitals, we find employee engagement has a positive influence on managerial and stakeholder perceptions of organizational performance. Employee engagement in decision‐making is also related to objective nonprofit performance measures, although the effects are less consistent. We conclude by discussing the implications of these findings for nonprofit research and practice.     

Managing traditionality and strategic change in nonprofit organizations

Fundamental differences with the for-profit sector, and that sector's own experiences, make it unwise for nonprofit leaders to adopt business organizations' externally focused approach to strategic change. Theories of organizational survival and punctuated equilibrium models of change and continuity, as well as the authors' research, suggest that planning aimed toward matching the organization to changes in its environment has limited value. This article argues that due to the relative constancy of societal needs and nonprofits' missions, and the importance of society's demands for reliable, accountable performance, nonprofits should greatly value continuity. Utilizating a typology of changes that nonprofits may confront, the authors clarify why potential organizational change should be approached cautiously, with a strong regard for traditionality as a mechanism of continuity. They then sketch some of the implications of this perspective for nonprofit sector researchers and leaders concerning the role of traditionality in successful organizational adaptation, including the value of historical analyses and the healthy tension between traditionality and change.