Incentive-based management for nonprofit organizations

Nonprofit organizations should consider using incentive-based management programs so long as such programs are studied thoughtfully, implemented carefully, and closely tied to other important management practices. The article describes the experiences of one nonprofit organization, Citizens' Scholarship Foundation of America (CSFA), in successfully conducting a staff incentive program during the past several years. The author also reports briefly on the results of a recent survey among CSFA staff involved in the incentive plan, outlining the benefits of such a program in helping the organization to reach its objectives. Finally, the author addresses potential pitfalls to avoid in implementing an effective staff incentive program.     

Succession planning in nonprofit organizations

Executive leadership is a critical component in the success of nonprofit organizations. An upcoming period of leadership transition is anticipated as substantial numbers of baby boomers, now at the peak of their careers, reach retirement age. With nonprofit organizations growing in both size and number, an impending leadership deficit is a concern. To help prepare for these important transition events, this study focuses on planning for executive succession. A survey exploring details of succession planning was undertaken of executive directors of 501(c)(3) charitable nonprofits and CEOs of 501(c)(4) cooperative organizations—the more business‐oriented user‐owned and controlled nonprofit organizations prominent in agricultural, utility, and finance sectors. We found that planning and preparation do not match the level of interest and concern for executive succession. Although the replacement of long‐serving leaders is acknowledged as difficult, few proactive steps are undertaken.     

Competing nonprofit organizations also collaborate

Cooperation among voluntary organizations is examined from the perspective of an Israeli project in which local voluntary organizations formed a joint forum. An analysis of questionnaires filled in by members of nine such bodies (“roundtables”) shows that cooperation among voluntary organizations may be functional in nature and not necessarily based on common goals. The degree of independence of the organizations did not affect their cooperation, but it influenced the way they looked on the “convenor” (external change agent), who played an important role in the process of interorganizational cooperation. The authors show that competition and cooperation are not mutually exclusive among voluntary organizations.     

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.     

The first three years of NML: Central issues in the management of nonprofit organizations

The articles published in the first three years of NML define a broad spectrum of management challenges and problems for future research. These issues fall into five broad categories: governance, executive leadership, human resources management, development of financial resources, and strategic adaptation to change. This article summarizes the contributions of NML authors and suggests areas where new research would advance understanding and practice of nonprofit management and leadership.     

Conflicting managerial cultures in nonprofit organizations

The increasingly managerial orientation of both staffs and trustees of nonprofit organizations appears to have led to conflict rather than cooperation. A case study of an organizational crisis explores how managerialism has obscured some of the unique constraints under which nonprofits operate and suggests ways of making these constraints more salient.     

Welfare reform and the future of nonprofit organizations

This article discusses implications of the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) for nonprofit social service organizations. We emphasize their role in the contemporary social safety net in relation to the public sector. Based on a study of ninety organizations operating in the Detroit metropolitan area, we adopted the supplementary, complementary, and adversarial framework from Young (1999) to assess the complex and evolving relationship between the nonprofit and public sectors in the post‐PRWORA era. The findings indicate a clear presence of all three perspectives; however, the continued shifting of responsibility for social services to private, nonprofit organizations suggests a growing dominance of the supplementary role. This raises concerns regarding future nonprofit capacity and other potential costs of nonprofit sector service provision.     

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.     

Exploring structure-effectiveness relationships in nonprofit arts organizations

The authors examined nineteen nonprofit performing arts organizations, investigating the distribution of influence among organizational members, the grouping of volunteers and staff in organizational structures, and the effectiveness of the organizations. The organizations' effectiveness was assessed using multiple performance indicators. The analysis revealed five groupings or configurations of influence, which correlated to the organizations exhibiting the highest and lowest levels of organizational effectiveness. The authors conclude that a variety of structures are associated with good performance but structural dysfunctions are associated with organizational failure, and that members' commitment to an organization's structure is an important element of success.     

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.     

Understanding workplace deviant behavior in nonprofit organizations

Workplace deviant behavior has traditionally been studied with respect to business or for‐profit organizations. In this article, we argue that nonprofit organizations also experience deviance, and due to their unique characteristics, they deserve special attention for extending the understanding of workplace deviant behavior to other types of organizations. Based on a review of the literature on deviance, we develop a general model of workplace deviance that we apply to nonprofit organizations. Based on the integrative conceptual framework, we advance relevant propositions for understanding and explaining deviance in nonprofit organizations.     

Public engagement with nonprofit organizations on Facebook

Explicating Facebook's engagement features, this study explored whether organizational message strategies based on the four models of public relations have an impact on the different levels of public engagement. The study found that publics demonstrate high levels of engagement with organizational messages when two-way symmetrical communication is used, compared to public information or two-way asymmetrical models. The study also provided practical implications for nonprofit practitioners to engage with publics via social media.     

Determinants of fraud losses in nonprofit organizations

Although fraud research has increased, the nonprofit setting has been ignored in criminology and business ethics. This exploratory study examines occupational fraud in 128 nonprofit agencies. Characteristics of offenders (age, gender, educational background, position in the agency), victims (size of organization and available control mechanisms), and offenses are compared to previous research. Regression analyses indicate that several factors are significant predictors of financial loss. At the individual level, it appears females are responsible for increased dollar losses; however, subsequent analyses demonstrate that organizations with a higher level of internal controls detect fraud committed by males, and it is these offenses that result in more serious losses.     

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.     

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.     

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.