Structure and accountability a study of national nonprofit associations

In the 1990s, the integrity and performance of nonprofit organizations in the United States have come increasingly under attack, and there are new calls to hold nonprofit organizations more accountable for their behavior and performance. This article reports on a study of the organizational structures of national nonprofit associations and asks how these umbrella organizations can help to self-regulate the sector through appropriate checks and balances between the national organization and local affiliates. The authors identify a number of differences in how associations with alternative structures hold local affiliates and national organizations responsible for their performances, and they conclude that structure is an avenue of self-regulation for nonprofit organizations deserving further attention.     

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.     

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.     

From Advocacy to Social Innovation: A Typology of Social Change Efforts by Nonprofits

Literature describing the social change efforts of direct social service nonprofits focuses primarily on their political advocacy role or the ways in which practitioners in organizations address individual service user needs. To elicit a more in-depth understanding of the varying ways that these nonprofits promote social change, this research builds off of the innovation literature in nonprofits. It presents a model of the typology of social innovations based on the empirical findings from survey data from a random sample (n = 241) and interview data (n = 31) of direct social service nonprofits in Alberta, Canada. Exploratory principal factor analysis was used to uncover the underlying structure of the varying types of social innovations undertaken by direct service nonprofits. Results support a three-factor model including socially transformative, product, and process-related social innovations. The qualitative findings provide a conceptual map of the varied foci of social change efforts.     

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.     

Professionalization and Voluntary Transparency Practices in Nonprofit Organizations

There are currently no public disclosure requirements for privately controlled charitable organizations in Germany. This study examines under which conditions German nonprofits, including both public charities and foundations, voluntarily choose transparency. Transparent nonprofits are defined herein as those that publicly disclose their annual reports and detailed financial information. A very small number of German nonprofits do so. The results of a crisp‐set Qualitative Comparative Analysis suggest that the driving force behind the voluntary transparency of organizations is professional management rather than revealed cases of malpractice or stakeholder demands.     

Determining the Optimal Donation Acceptance Policy for Nonprofit Stores

Many nonprofits derive a considerable amount of their financial support from the resale of donated items. Given the razor‐thin margins at which many of these organizations operate, it is critical that they maximize the proceeds that come from the sale of these items. To do so, nonprofits require policies that guide their donation acceptance decisions so as to optimize revenue generation. This article presents research about how to determine the optimal donation acceptance policy for Habitat for Humanity. Habitat affiliates sell donated material at their ReStores, or discount home improvement centers, and the revenue from the ReStores directly supports the building of new homes. Several constraints limit the revenue that the ReStores derive from the donated items, including the supply rate of items from donors, the demand rate of items from customers, and the space limitations of the ReStores. We developed a two‐step method to determine the optimal acceptance policy—the daily amount of donations to accept to maximize revenue. This approach increases revenue by up to 20 percent and additionally provides insights into pricing options, marketing strategy, and optimal store size.     

The quality of employment in the nonprofit sector: An update on employee attitudes in nonprofits versus business and government

Results from a survey of a national sample of 1,190 working adults update findings collected in 1977 (Mirvis and Hackett, 1983) on the characteristics and attitudes of people working in nonprofits. As in the earlier survey, it shows that people employed in the private nonprofit sector gain more satisfaction from their jobs than their counterparts in business and government and have more trust in their management. still, people working in nonprofits are just as concerned that their employers will “take advantage” of them and, in contrast to the 1977 survey, are no more psychologically committed to their organizations than are people in the other sectors.     

The Nonprofit Sector and State Governments: Public Policy Issues Facing Nonprofits in North Carolina and Other States

The challenges facing nonprofits in North Carolina and most states include devolution and ripple effects at the state level from federal budget cutbacks, government efforts to tax or further regulate nonprofits, scandals involving a few organizations or their leaders, and efforts to limit nonprofits' right to lobby and advocate for their causes. But the future also holds a number of opportunities for nonprofits, including the increased clout of nonprofits acting together as a sector; partnership initiatives with nonprofits by North Carolina's governor and chief executives in other states, legislative measures to increase charitable giving and reduce red tape, state-level summits following up on the president's push for increased volunteerism, and a reservoir of public trust in nonprofits. North Carolina's experience may predict the future dangers and opportunities in other states.     

Dynamics between fragmentation and unity: Identity and nonprofit relationship management in the Asian American Community

Focusing on community-based nonprofits with specific missions of serving the Asian American community, this study examined the dynamics between various layers of identity, including ethnicity and panethnicity, and identified how intercultural relationship management contributed to a sense of community and empowerment among minority communities. Interviews from both nonprofit community organizations and community members revealed the following major findings. First, Asian American community nonprofits needed to manage a myriad of identities within their community, particularly the interplay between diverse ethnic identities and the pan-Asian ethnic identity. To help manage these identities, these nonprofits adopted a dual approach using both segmented outreach and coherent advocacy. Second, these community nonprofits used intercultural relationship management to build a sense of community and efficacy, promoting outcomes such as health awareness, communicative activeness, cultural shift, political engagement, and community alliances. This study contributes to relationship management literature through introducing identity-based relationship building strategies.     

Small,minority‐based nonprofits in the information age

Pundits of information technology stress that the Internet opens new arenas for nonprofits through the ability to share information both locally and globally. New technology also changes funders' and other evaluators' expectations regarding proposals. Although new technology makes life easier for organizations with budgets, time, and familiarity with technology to buy and use these new tools, nonprofits that lack these resources fall even further behind in their quest to support and improve their programs. Based on ethnographic research in Kenosha, Wisconsin, this article explores the role of changing technology in the ability of small nonprofits to succeed in implementing their organizational mission. Using case studies, this article compares the experience of nonprofits and church mission projects based in the African American and Latino communities in this small city to that of two mainstream organizations in gaining funding and the general perception of those agencies in the local community. The article argues that expectations about the use of technology increase the gaps between a community's haves and have‐nots. Kenosha organizations based in communities of color are particularly at risk due to already low funding and lack of staff familiar with new technologies. The article demonstrates that the key is often not access to technology or technical assistance but the time to make the best use of available technology.     

Interorganizational relations of nonprofit organizations: An exploratory study

In their several roles as appropriators, redistributors, and providers, nonprofit organizations are involved in complex transactions with organizations in the nonprofit, for-profit, and public sectors. The purpose of this exploratory investigation, based on a sample of New York State nonprofits, is to explain variation in the extent of intrasector and intersector transactions. Various kinds of prevailing environmental complexities, coupled with the ways in which organizations are structured to deal with these complexities, help explain variation in the extent of organizational transactions. Another important predictor is directors' perceptions of main problems affecting the activities of their agencies. These findings are consistent with the conclusion that environmental uncertainties and perceptions about them affect the nature and extent of interorganizational contact.     

Relationship Fundraising: How to Keep Donors Loyal

This article explores how relationship marketing and its variant relationship fundraising may be used to assist nonprofits in reducing the lapse rate of donors to their organization. Employing a postal survey of ten thousand donors to causes in a variety of categories, the author concludes that although approximately one in five donors might lapse because of a change in financial circumstances, a similar number simply elect to switch their support to other organizations. The role of the quality of service offered to the donor in enhancing retention is also highlighted, as are donor perceptions of the feedback they receive and the impact they believe their gift might have on the cause.     

The Decision-Making Context and Its Impact on Local Human Service Nonprofits

One significant factor affecting an organization's functioning is the decisions made by other organizations that are important to it. We examine decision-making in three local human service delivery nonprofits, focusing on the level (local versus national) of the actors making decisions as well as the degree of horizontal or vertical coordination among decision makers. The findings show that the decision-making context affects nonprofit structure and operations and suggest that providers may have to make significant trade-offs as they seek to restructure in response to policy changes such as devolution.     

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.     

Does meeting standards affect charitable giving? An empirical study of New York metropolitan area charities

Charitable donations constitute a significant revenue source for many nonprofit organizations. To help donors decide which nonprofits to support, watchdog organizations such as the Better Business Bureau (BBB) Wise Giving Alliance have developed standards to promote wise giving. The effectiveness of these guides in channeling limited resources to the best‐managed nonprofits is not widely studied. This research attempts to empirically investigate the effects of standards on public giving, controlling for factors that have documented effects on donations. Specifically, it regresses public support on the extent to which local nonprofits meet the standards of the Better Business Bureau Serving Metropolitan New York, Mid‐Hudson and Long Island Regions, controlling for organization size, board size, service category, government funding, fundraising expense, and giving price. The study found that BBB standards have a positive effect on giving behavior. Meeting BBB standards is associated with higher levels of public support. Participating in assessment programs and striving to meet the standards are recommended for nonprofits seeking to improve funding through charitable contributions. Further study that extends the search for the mechanism that links meeting standards to improved donations is recommended.     

What Affects the Strategic Priority of Fundraising? A Longitudinal Study of Art,Culture and Humanity Organizations’ Fundraising Expenses in the USA

Fundraising is a crucial activity for many nonprofit organizations. However, scant research has examined how the strategic priority of fundraising activities may vary across organizations and over time. This study addresses this gap in knowledge by examining how economic and organization-specific financial conditions predict the priority of fundraising in a nonprofit organization. In particular, this study examines the changes in the ratio of art, culture and humanities organizations’ fundraising expenses to their total expenditure during the period of 2005–2012, which includes the great recession of 2007–2009. The findings reveal that, when facing an economic crisis, the ratio of fundraising expense to total expenditure increases, suggesting that fundraising becomes a higher priority under a hostile economic condition. The analysis also reveals differences in nonprofits’ reaction to recession depending on their revenue mix, with donative nonprofits reacting more sensitively than commercial nonprofits.     

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.