Adoption of social media for public relations by nonprofit organizations

This survey of nonprofit public relations practitioners (N = 409) applied the Unified Theory of Acceptance and Use of Technology (UTAUT). Findings indicate that women consider social media to be beneficial, whereas men exhibit more confidence in actively utilizing social media. Organizations with specified public relations departments were more likely to adopt social media. Positive correlations between UTAUT factors and credibility indicated a greater likelihood to adopt social media.     

“Corporate” governance in nonprofit organizations

The economics‐based theoretical and related empirical literature on the governance of nonprofit organizations is brought together and integrated in a way easily accessible for noneconomists. This literature is scattered in academic journals covering economics, health economics, management, and accounting, and in the more nonprofit‐geared research publications. After defining corporate governance, I present in a nontechnical way the most appropriate economic framework for studying governance problems: the principal‐agent theory. Most of the economic literature deals with the role and influence of the board and its relation to the organization's management and performance. This is reflected in the article's structure. The board's functioning, composition, and committee structure are first discussed, followed by a review of the literature on incentive‐based remuneration schemes, disclosure of financial information, and the use of debt to mitigate agency problems between the board and management. The literature dealing with donors and subsidizing authorities in governance relations is then presented. The article concludes with a number of practical implications of the scholarly obtained results to date, as well as some suggestions for further theoretical and empirical research.     

The DIRECTIONS nonprofit resource assessment model: A tool for small nonprofit organizations

Rapid growth in the number of nonprofits has created a shortage of trained staff and experienced volunteer leadership for nonprofit organizations. The Nonprofit Education Initiative (NEI) in South Carolina developed the DIRECTIONS nonprofit resource assessment model to provide tools to help nonprofits better meet the challenges facing our communities—tools that will help nonprofits develop effective plans, integrate resources, diversify revenue, communicate effective messages, and motivate constituents. These tools are also inexpensive and available close to home. The research and development process was a cooperative effort between the Department of Parks, Recreation, and Tourism Management and Clemson University Cooperative Extension Service, with funding from the W. K. Kellogg Foundation. Cooperative Extension is a component of the land grant university system, the largest educational delivery system in the world. Cooperative Extension's role is to plan, execute, deliver, and evaluate learning programs consistent with locally identified needs. It helps people acquire the understanding, capabilities, attitudes, and skills essential to solving farm, home, and community problems. This article gives a background of the challenges facing nonprofit organizations in South Carolina, the steps taken to develop this new assessment model, and results of research conducted throughout the development process.     

The news value of nonprofit organizations and issues

This article reports on a study of the newsworthiness of information about nonprofit organizations and issues. The two-part study included content analysis of news stories in the 1991 editions of the San Francisco Chronicle and interview with editors and reporters at the paper.     

How nonprofit human service organizations manage their funding sources: key findings and policy implications

Major findings and policy implications on how nonprofit social service organizations manage their funding relations are summarized. Data from in-depth case studies of six medium-sized social service organizations with distinctive funding profiles yielded findings on the major contingencies associated with controlling fees, the volatility of donations, and the driving force of public funding relationships for funders (public and private), nonprofit managers, and the role of nonprofit organizations.     

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.     

Accountability and nonprofit organizations: An ethical perspective

Given limited market regulation and no direct voter regulation, how nonprofit organizations can be made accountable is a serious and long-standing issue for the sector. The expectations and demands of various constituent groups associated with nonprofits are often conflicting and even contradictory. Nonprofits need to come to terms with legitimate expectations, base them on reasonable standards, and work through each of them in ways consistent with the others and with the respective missions of the organizations.     

Accountability and nonprofit organizations: An economic perspective

A popular concern is whether the managers of nonprofit enterprise are accountable. This article considers accountability in the context of three questions. First, how do groups establish a basis on which to hold managers acountable? Second, to whom should a manager be accountable? Third, can a person or group make it important to a manager to act in the best interests of the person or group? These three questions are addressed by the fields of public choice theory, social choice theory, and principal-agent theory, respectively. A cynical way of summarizing the seminal findings in these areas of research is that public choice theory proves that groups will be unable to form, social choice theory proves that once a group forms, it will be unable to make good decisions, and principal-agent theory proves that a decision, once reached, is impossible to implement. A more optimistic view is that the problems identified by these research findings contain the seeds of their own solution, and that thereby valuable lessons for nonprofit managers can be adduced.     

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.     

The economic value of volunteers to nonprofit organizations

This article applies microeconomic theory to the problem of calculating the economic value of volunteers to nonprofit organizations. It finds weaknesses in two popular valuation metrics: replacement cost and demand price. It argues for a method that measures the economic value of volunteer time by the impact it has on an organization's revenue, through either fundraising or producing goods and services. An Australian case study illustrates the method, and a survey of U.S. nonprofits tests the generality of the assumptions. The concluding section offers suggestions for management practice and further research.     

Responsibilities and roles of boards in nonprofit organizations: The Israeli case

In this study, nine roles and responsibilities of boards of directors in nonprofit organizations in Israel are examined and perceptions of these roles and responsibilities by chairpersons of the boards and the executive directors are compared. Four groupings of board roles were found: senior human resource management, maintenance of relationships with the task environment, policymaking, and fiscal management and fundraising. The findings show that in most organizations boards fulfill all these roles and play a significant role in decision making. A significant consensus exists between chairpersons and executive directors in respect to most of the boards' roles, whereas significant differences in perceptions were found in respect to financial matters and maintenance of relationships with the task environment.     

Innovation by nonprofit organizations: Policy and research issues

It is often claimed that a main reason public authorities and others use nonprofit organizations is that nonprofit organizations are innovative. But very little research has been conducted into innovative behavior by nonprofit organizations. How, then, does a funder formulate a policy with which to select innovative organizations? This article develops a classification matrix for types of innovations, sets out the elements of an innovation policy for a funder, and uses a review of the main theories of the spurs and inhibitions to innovation to consider how this ordering can be used in the construction of an innovation policy and as a framework for research.     

Fraud survival in nonprofit organizations: Empirical evidence

This study examines the survival of nonprofit organizations after the discovery of a fraud. Literature on nonprofit fraud claims that fraud has a destructive impact on nonprofit organizations. This study is the first to provide empirical evidence of the impact of fraud on a nonprofit organization's survival, and to analyze the significance of underlying organizational and fraud factors. An analysis of 115 nonprofit organizations experiencing a fraud shows that over one fourth of these organizations did not survive at least 3 years beyond the publication of the fraud, a rate considerably higher than the typical nonprofit failure rate. This article investigates the characteristics of surviving organizations and finds that older and larger organizations are more likely to survive, indicating the liabilities of newness and smallness hold in fraud survival situations. In cases where an executive‐level perpetrator committed the fraud, or where the organization victimized the public, the organization was less likely to survive. These findings suggest nonprofit organizations, particularly those that are new or small, could benefit by implementing governance policies and procedures that are consistent with those employed by more established organizations.     

The validity of supplementary pay systems in nonprofit organizations

The theory and assumptions used by nonprofit organizations when adopting employee incentive pay systems are examined in this article. A theory to explain the use of financial incentive is described. This theory states that nonprofit employees are motivated, like employees in the for-profit sector, to seek financial rewards contingent on achieving certain performance goals. To validate the Theory, a review of select literature is provided.     

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.     

Merging nonprofit organizations: Analysis of a case study

This article presents a case study of merging among nonprofit organizations that provide social and community services. The study sheds light on the dynamics and problems of merging nonprofit organizations, whose espoused ideology focuses on promoting the well-being of their clients. The author describes and analyzes a merger in metropolitan Jerusalem, Israel, and highlights the potential problems that may ultimately undermine its success. This merger is the outcome of an ongoing power and political struggle. The analysis focuses on the organizational ideologies and culture as well as the strategies and structure of the merging organizations. In addition, the author deals with the underlying motives for merging, the driving and restraining forces, and the implications of merging nonprofit community services organizations with other social and human services organizations.     

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.     

Accountability of nonprofit organizations and those who control them: The legal framework

Legal accountability, understood as either an obligation to meet prescribed standards of behavior or an obligation to disclose information about one's actions even in the absence of a prescribed standard of behavior, is imposed on nonprofit organizations and those who manage them by state law and by fedral tax-exemption law. A perception that charities are exempt from both the electoral control that holds government accountable and the market forces that discipline business encourages a tendency to look to law to ensure accountability in the charitable sector, to perceive that shortcomings in the law are responsible for shortcomings in the sector, and to conclude that repair or reconstruction of the legal framework is the appropriate corrective. However, although the legal framework is far from perfect, sweeping change will not likely solve the problems and may well undermine the most positive characteristics of the sector. Some aspects of accountability cannot and should not be the subject of legal rules. Efforts to make charities accountable by redrawing legal standards of behavior in accord with popularly recognized standards of propriety, or even “excellence,” are likely to be counterproductive. Instead, adjustment of the legal framework in the hope of improving accountability should be incremental and should be evaluated in the context of organizing principles and core values that reflect our best understanding of the unique strengths of the sector and the functions it serves in our society.     

The relationship between formal planning and performance in nonprofit organizations

A study of 240 YMCA organizations revealed that regardless of organization size, those organizations that used a formal approach to strategic planning had higher levels of financial and social performance than those with less formal processes. The better performers also assigned the responsibility for planning to a strategic planning subcommittee of the board rather than to the board's executive committee or to an outside consultant.