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.     

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.     

How organizational characteristics affect the adaptive tactics used by human service nonprofit managers confronting financial uncertainty

The way that nonprofits respond to funding uncertainty is crucial to their ability to meet goals and position themselves for future success. This article investigates how structural, managerial, and financial characteristics affect the adaptive tactics used by human service nonprofits during times of financial stress. These tactics include adding new programs, reducing programs or staff, expanding or starting joint programs, pursuing earned income, and expanding advocacy involvement. Using longitudinal data on human service nonprofits collected on either side of the 2002–2003 economic downtown, we find that larger size provides organizations with a unique ability to choose among different adaptive tactics, as larger size was significantly predictive of adding new programs, reducing programs, expanding advocacy, and pursuing earned income. Strategic planning was positively associated with innovative tactics such as starting joint programs or pursuing earned income. Financial stress or declines in an organization's major funding source led to cutbacks, as expected, but managers who foresaw these challenges were able to respond proactively by adding programs or starting joint programs. However, managers with more training did not respond much differently than did other managers, and organizational age and use of performance management tools had no effect in guiding organizational responses to financial uncertainty.     

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.     

The Contextual Impact of Nonprofit Board Composition and Structure on Organizational Performance: Agency and Resource Dependence Perspectives

We study the relation between stability of the nonprofit organization’s environment and its board structure and the impact of this relation on organizational performance from the perspectives of both Agency Theory and Resource Dependence (Boundary Spanning) Theory. The impact of board characteristics on organizational performance is contextual. Specifically, we predict and show for a sample of U.S. nonprofits that board mechanisms related to monitoring are more likely to be effective for stable organizations, whereas board mechanisms related to boundary spanning are more effective for less stable organizations. We find that the two theories are complementary and address different aspects of nonprofit performance, but the results are statistically stronger and more often consistent with resource dependence than with agency theory. Overall, this study supports Miller-Millesen’s (Nonprofit and Voluntary Sector Quarterly, 32: 521–547 2003) contention that, because the nonprofit environment is often more complex and heterogeneous than the for-profit world, no one theory describes all tasks of nonprofit boards.     

Resource Constraints or Cultural Conformity? Nonprofit Relationships with Businesses

Nonprofit interactions with businesses have become increasingly diverse, but which nonprofits establish relationships, and to what extent do relationships depend on the form or type of tie? Focusing on nonprofit collaboration with businesses and donations from businesses, we test arguments based on sociological institutionalism and resource dependence theory. We find that nonprofits relying on earned income, nonprofits led by individuals with management degrees, and rationalized nonprofits all are more likely to report collaborations with businesses, aligning with expectations from institutional theory. For donative ties between businesses and nonprofits, we find that rationalized nonprofits are more likely to have charitable gifts from businesses. However, nonprofits with earned income are less likely to have business donations, and funding diversity has a salient positive effect. These results reveal important but paradoxical institutional and resource dependence effects. We conclude with a discussion of our divergent findings and set an agenda for additional research on the topic.     

Risk and diversification of nonprofit revenue portfolios: Applying modern portfolio theory to nonprofit revenue management

This study uses modern portfolio theory (MPT) to estimate the risk of nonprofit revenue portfolios and examines to what degree the revenue concentration measure based on Herfindahl–Hirschman Index is associated with the portfolio risk measure based on MPT. The findings suggest that nonprofits with greater revenue concentration have lower revenue portfolio risk in the whole sample analysis. However, it is plausible that this result is dominated by organizations reliant on commercial income, which comprise over half of the sample. In fact, when examined separately, the relationship varies by an organization's primary funding structure. While higher revenue concentration is positively associated with portfolio risk for organizations relying on donations or those without a consistent primary funding source, it appears to associate with a lower portfolio risk for commercial organizations and those relying on government grants. This study reflects on the concept of diversification derived from portfolio theory and calls attention to a more nuanced approach to nonprofit revenue strategy.     

Who Determines How Nonprofits Confront Uncertainty?

This study examines the impact of managers, board members, beneficiaries, donors, and government entities on nonprofit strategic decisions. Using data collected from GuideStar, the National Center for Charitable Statistics, and surveys, we provide evidence that strategic decisions of nonprofits are shaped by the ability of the aforementioned stakeholders to diversify their interests. Our findings offer nonprofits another means by which they can understand and therefore manage their strategic decisions. In addition, our framework suggests future applications of stakeholder theory conceive of stakeholder salience as a bidirectional phenomenon.     

The role of technology in reconfiguring volunteer management in nonprofits in Hong Kong: Benefits and discontents

There is plenty of evidence demonstrating that volunteering generates benefits for individuals and society at large. However, the role of technology used in recruiting, managing, and retaining volunteers in nonprofits is underexplored in East Asia. Drawing from in‐depth interviews with representatives of eight nonprofits, we examine how technology reconfigured volunteer management in nonprofits, identify its limitations and shortcomings, and discuss strategies in which technology can be utilized to enhance the effectiveness of volunteer management. We found, through this study, that the use of technology reconfigured key aspects of volunteer management: improving recruitment by enlarging and diversifying the volunteer pool; enhancing precision and speed of volunteer matching; improving nonprofits’ ability to recruit professionals; and reducing overall administrative burden of volunteer management within these nonprofits. However, challenges in volunteer management resulting from technology uptake were also observed, including resistance among frontline staff to adopt technology, and volunteer accountability and quality assurance. Specifically, it was found through this study that the extent to which nonprofits are able to effectively utilize technology in volunteer management is contingent on how well volunteer managers are able to actualize the notion of capacity optimization, create a friendly volunteer environment, and build rapport with volunteers. Implications for enhancing organizational capacity in volunteer management vis‐à‐vis the role of technology in the third sector are further discussed.     

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.     

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.     

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.     

U.S. nonprofit organizations' demand for temporary foreign professionals

This article examines the demand by nonprofits in the United States for foreign professionals to fill a variety of specialized and managerial positions on a temporary basis. Our study contributes to understanding the demand side of the trend toward a more contingent workforce. We test predictors of nonprofit employers' pursuit of foreign labor for professional expertise and show an association between strategy to insource foreign labor and organizational resource level, mission, occupational need, and wage offer. Our findings suggest that government visa policies and practices affect labor pools for nonprofit organizations. Given that our study reveals varied interest by nonprofits in pursuing temporary foreign professionals, we end with a brief review and discussion of how the use of temporary and foreign professionals may influence the dynamics of nonprofit organizations and suggest additional research questions.     

The Effects of Capital Campaigns on Other Nonprofits’ Fundraising

This study focuses on the effects of capital campaigns on the fundraising performance of other nonprofits within the same geographic region. Drawing from research in organizational ecology and charitable giving, we offer a theory of capital campaign impact that says any impact of a campaign must be looked for in a carefully circumscribed area or population of organizations, and that campaigns raise awareness of the need for services within a particular area. We use data on capital campaigns at arts nonprofit organizations in forty‐eight counties across the United States between 1999 and 2007, coupled with financial data on nonprofits in the arts in the same county to test our hypotheses. The results from our analyses show that a major capital campaign positively affects other nonprofits’ fundraising, and the effect varies depending on the phase of the capital campaign. We discuss possible mechanisms that drive the positive effects of capital campaigns, and conclude with a short illustration.     

The Pyramid of Nonprofit Responsibility: The Institutionalization of Organizational Responsibility Across Sectors

Observers have noted that organizations in all sectors, whether business, nonprofit, or government, have been moving toward rationalized structures that presuppose and express empowered organizational actorhood. We draw upon neo-institutional theory in this paper to extend the argument: The arrival of organizational actorhood has precipitated a concomitant, cross-sectoral movement toward organizational social responsibility. Whereas existing research has tended to theorize the social responsibilities of businesses, we develop a pyramid conceptual schema to array the social responsibilities of nonprofits. We then document the coevolution of organizational actorhood and responsibility across both sectors with a metastudy of nearly 200 extant surveys. We chart the institutionalization of a slate of formal structures that express organizational actorhood (i.e., mission statements, vision statements, and strategic plans) and that profess and define organizational social responsibilities (i.e., core values, ethics codes, and responsibility communications). We close with implications and future directions for organizational studies and research on corporate social responsibility.     

Latino Faces,Corporate Ties: Latino Advocacy Organizations and Their Board Membership

Although they have increased exponentially since the 1960s, social scientists know little about ethnic advocacy organizations. These nonprofits are important bridges between underresourced communities and mainstream funding organizations and their directors are established ethnic leaders. Sociologists study interlocking directorates—or shared board membership—to understand how organizations fit together within broader social networks. Network concepts, particularly the theory of institutional isomorphism, suggest that organizations are likely to be similar to the extent they are connected and operate within a common organizational field. We apply this logic to Latino advocacy organizations to examine the underlying source of cohesion across this ethnic field. We ask whether the organizations are tied by interlocking directorates of ethnic elites who sit on their boards of directors or if board members' common affiliation with other elite institutions creates the structural conditions that facilitate potential ideological or behavioral similarity. A social network analysis of five prominent Latino advocacy organizations reveals support for both hypotheses: Latino board members are both embedded in ethnic‐based networks and entrenched within elite organizational webs. This suggests that ethnic elites who sit on the boards of Latino advocacy organizations are also corporate elites, selected for the social capital they bring to these nonprofits.     

Which Nonprofit Gets More Government Funding?

Government represents one of the most important funding sources for nonprofit organizations. However, the literature has not yet provided a systematic understanding of nonprofits’ organizational factors that are associated with their receipts of government funding. This study combines interorganizational relationships and organizational institutionalism literature to examine the determinants of nonprofits’ obtainment of government funding. Based on a survey of human service nonprofits in Maryland, this research finds that nonprofits with higher bureaucratic orientation, stronger domain consensus with government, and longer government funding history are more likely to receive government contracts and grants. Nonprofits’ revenue diversification, professionalization, and board co‐optation might have very limited impacts.     

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.     

Nonprofit sustainability during times of uncertainty

Nonprofit organizations in the United States depend on a diverse set of funding streams to sustain their operations. This study examines the ability of nonprofits to leverage funds from the private sector during the current economic downturn within four areas receiving federal funding for community and economic development. Both survey research and individual interviews were used to examine how nonprofits within these areas are incorporating their board members and community leaders to continue services during a time of resource scarcity.     

Retaining the Benefits of Government–Nonprofit Contracting Relationship: Opposites Attract or Clash?

The benefits and negative consequences of government–nonprofit contracting are well documented. From the literature, we know that government and nonprofits can demonstrate contradictory organization-level characteristics. Some argue that these contradictions make government and nonprofits complementary partners, but empirical evidence reveals the potential loss of nonprofit voluntariness. How does one harvest the alleged benefits of the government–nonprofit relationship while minimizing the potential loss of nonprofit voluntariness? Through the qualitative investigation of one nonprofit, this study identifies seven types of organizational-level differences between the government and the nonprofit. These conflicts are manifested by three forms of power struggle. This illuminates that power struggles are the root cause of the potential loss of nonprofits’ voluntariness. The author argues that as long as nonprofits depend on the government for resources, power struggles will persist and voluntariness will be at risk; hence, addressing resource dependence is the key to answering our research question.