Building and valuing global brands in the nonprofit sector

Global nonprofit brands are the world's new “super brands” (Wootliff and Deri, 2001). Nonprofit organizations command unprecedented levels of trust, and nonprofit brand valuations are on par with major international corporations. Leaders and managers of nonprofits face new challenges in the stewardship of their brands. Based on current thinking in nonprofit management and detailed interviews with close to one hundred executives of ten international nonprofit organizations, this article draws strategic lessons on brand building and brand valuation activities of international nonprofits. The multiple roles and stakeholders that global nonprofit brands must address make nonprofit brand building complex and challenging. In particular, differences between advocacy and relief organizations must be explained. Despite the complexity, international nonprofit organizations may have an advantage over for‐profits in leveraging public trust and brand communication. Advocacy organizations in particular successfully link brand and cause to good effect. The valuation of nonprofit brands is a new strategic challenge with significant appeal, but also significant concerns for international nonprofits. In addition to providing nonprofit leaders and managers with a better understanding of brandbuilding activities, imperatives, and best practices in the field, this article outlines the opportunities and threats associated with the valuation of nonprofit brands.     

Common Agency in Nonprofit Advocacy Organizations

Most theories of nonprofit organizations and nonprofit leadership recognize the multitude of stakeholders—including board members, donors and volunteers, funders, the media, and policy makers—that organizational leaders must contend with in doing their work. For nonprofits engaged in advocacy, demands from stakeholders may be even more challenging to meet. Although stakeholder theory recognizes the effect of various groups on an organization, it does not explain how leaders manage the preferences of their often‐competing stakeholders while they make choices for the organization. This study develops a common agency framework, evaluating the roles of three groups crucial to nonprofit advocacy organizations: the organization's board of directors, elected officials, and donors/members. The common agency framework is then illustrated with interviews with leaders of nonprofit advocacy organizations in California. Findings suggest that the leaders of these groups have a significant amount of discretion in guiding their organizations’ activities and operations.     

Nonprofit Leader Perceptions of Operating Reserves and Their Substitutes

This exploratory study has three objectives: (1) to understand the various ways academics, consultants, and practitioners conceptualize operating reserves; (2) to explore differences among academic findings, consultant recommendations, and nonprofit leader perceptions of operating reserves; and (3) to identify how practitioners operationalize operating reserves within their organizations. Using intensive interviews with nonprofit executives, we find that the operating reserve ratio (ORR) commonly used in the nonprofit literature does not accurately indicate whether an organization holds an operating reserve according to nonprofit leaders. In addition, results indicate that experienced nonprofit leaders perceive a variety of other fund types including endowment and investment savings as well as ability to borrow, other assets, sister foundations, and donor networks as legitimate substitutes for a reserve.     

Called to order: A board president in trouble

This is a fictionalized case based on real events. It is intended as a teaching tool to stimulate discussion about procedural issues in nonprofit governance; board roles and responsibilities; communications; and relationships between boards, chairs, and executives, particularly in the context of smaller organizations. It is meant to support sessions on nonprofit boards and governance in introductory courses on nonprofit management or for use in workshops with new or less experienced executives and board members. Set in an organization engaged in cultural exchange, the case can be used in introductions to nonprofit management, arts administration, or international nongovernmental management.     

Inclusion and commitment as key pathways between leadership and nonprofit performance

Given the projected growth of workforce diversity in the United States and the fact that heterogeneous workforces result in both positive (increased retention and performance) and negative (increased conflict and turnover) organizational outcomes, nonprofit leaders are faced with the challenge of effectively managing their workforces. Findings ways to ensure positive workplace outcomes, such as employee commitment (an emotional attachment to the organization) and performance, is especially critical for the overall functioning of nonprofit organizations. Using longitudinal multilevel path analyses, this study examined whether transformational leadership influenced work group performance through both creating a climate for inclusion and increasing employee affective commitment in a diverse nonprofit health care organization. Results indicate that transformational leaders help increase perceptions of inclusion, which improves employee commitment to the organization, and ultimately enhances perceived work group performance. This suggests inclusion and affective commitment as key factors for how leaders can increase nonprofit performance.     

Creating stabilizers and safety nets for successor executives' high‐wire act

This article explores executive succession planning in a nonprofit health care organization with a strong values‐based culture. Case study research was used to explore how retiring executives have prepared the organization for their departure and have used various strategies in an attempt to limit any potentially negative impact.     

‘Some Good Clean Fun’: Humour,Control and Subversion in an Advertising Agency

This article explores the relation between humour and control, drawing on participant observation in an organization in which humour was central to daily life. Keys is a leading advertising agency whose staff spent an unusually large amount of time sending humorous e‐mails. Examining these e‐mails in some depth, we unpack the role of humour in subverting various forms of control, including gender norms and managerial authority. We find the relation between humour, control and subversion to be ambiguous. Building upon current debates in organization studies, we develop the concept of humour based on our observations at Keys. Specifically, we argue that humour is always in excess of both control and subversion, a ‘nicely impossible’ object that cannot be captured. This article thus contributes to theoretical approaches on organizational humour, conceptualizing the concept of ‘newness’ through Judith Butler's re‐reading of Derridean différance and the Lacanian Real. In addition, we contribute a novel empirical account of the study of e‐mail list humour in a contemporary advertising firm.     

Managing stakeholder relationships and nonprofit organization effectiveness

This research examined how nonprofit organizations manage their relationships with stakeholders and how these practices relate to perceived organization effectiveness. We conducted semistructured, open‐ended interviews with executive directors of nonprofit organizations (NPOs) to discover whom they see as their stakeholders, the types of expectations they encounter from stakeholders, and the practices they use in managing stakeholder relationships. The two nonprofits that were evaluated as most effective used a consistent, thematic rationale in dealing with stakeholder issues: one organization discussed its actions in terms of its mission and core values, the other based its actions in terms of building relationships and networks. Our study suggests that organizations that ground their external relations in issues that are recognized as good nonprofit management, and do so consistently across stakeholder groups, will tend to be rated as more effective by multiple, external evaluators.     

Mind the Gap: The Commodification of Corporate Social Responsibility

This article, based on two years of participant observation, in‐depth interviews, and informal exchanges, offers an ethnographic account of a nonprofit organization that promotes the idea of corporate social responsibility. It follows the ways and means by which midlevel corporate executives are initiated into the universe of “corporate citizenship,” learning to deploy terms such as “stakeholders,” “brand loyalty,” “social investment,” and “community empowerment.” Through an analysis of workshops, lectures, and ceremonial events, I show how the idea of social responsibility is transformed into a managerial tool, designed to enhance employee loyalty and to improve brand loyalty. From a constructivist sociological perspective, I also show that the idea of corporate social responsibility, when framed and advocated by a corporate‐friendly organization, fits the neoliberal emphasis on corporate self‐regulation.     

Social capital and nonprofit leaders

The concept of social capital seems to be a very compatible, useful, and important one for nonprofit organizations. Nonprofits must sustain and enhance the original social capital with which they were formed and broaden it into a variety of key areas. Nonprofits and their leaders must foster social capital in order to recruit and develop board members, raise philanthropic support, develop strategic partnerships, engage in advocacy, enhance community relations, and create a shared strategic vision and mission within the organization and its employees. Nonprofit executives have a pivotal role in carrying out these functions, but they do so through relationships and networks with others. These activities are time‐consuming and demanding, and they require planning. This article provides a focused literature analysis on the concept of social capital as it applies to nonprofit management and leadership. The author views the literature with respect to definitions of social capital and the way nonprofits generate and mobilize social capital in order to achieve organizational goals. The author also cites methods for measuring social capital.     

Board Accountability: Lessons from the Field

Accountability has become a major issue in the nonprofit sector. Numerous external and internal approaches to strengthening performance in this area exist, and many nonprofit boards expect their executives to account foruse of their organizations' resources. However, few boards apply any such expectations to themselves. Qualitative analysis of records from interviews, consultations, and meeting observations with 169 board members of thirty‐four diverse nonprofit organizations revealed six sets of practices that foster board accountability. They include setting clear expectations and standards for the group and for its members, actively using policies regarding conflicts of interests, identifying and staying focused on priorities, maintaining strong two‐way communications directly with constituency groups, conducting assessments of meetings and board performance, and experimenting intentionally with new approaches to their work. The experiences of these boards provide numerous examples of practical steps that others may consider when they seek to increase the value they add to their organizations as well as to strengthen public trust.     

Building a better workplace for teen volunteers through inclusive behaviors

Facing a decline in the number of hours donated to nonprofit organizations, volunteer coordinators must strive to determine the most effective strategies for retaining volunteers. Relationship management theory provides a framework to gauge the well‐being of an organization's relationship with its stakeholders. Through surveys administered to 317 teenage volunteers at three library systems, this study found that of four factors—trust, commitment, satisfaction, and control mutuality—trust had the strongest ability to predict intent to continue volunteering. Further analysis revealed that trust could be enhanced by including teenagers in work groups throughout the organization, seeking their input on organizational decisions, and ensuring they receive formal and informal organizational communications.     

Revisiting the Prediction of Financial Vulnerability

Whether or not a nonprofit organization is vulnerable to financial problems is a concern of all stakeholders of the organization. Recently, Greenlee and Trussel (2000) and Trussel and Greenlee (2001) expanded Tuckman and Chang's work (1991) to predict which organizations are financially vulnerable. This article extends the work of these authors by developing a model of financial vulnerability that includes four financial indicators, controls for the sector to which an organization belongs, and is based on a sample of over ninety‐four thousand organizations. The model is useful as a screening, monitoring, and attention‐getting device.     

The Use of E‐mail in the Therapy Process

The therapeutic letter has a long history, with roots in psychoanalytic work and continuing application in family therapy. The advent of e‐mail has allowed another form for therapeutic written communication which, while incorporating the benefits of therapeutic letters, adds to these. It has also opened up some potential risks. This article incorporates a brief review of the literature covering therapeutic written communication and offers a case example where e‐mail was used as an adjunct in face‐to‐face therapy with a client who experienced attachment difficulties. This therapy was informed by systemic and psychoanalytic traditions. The authors explore a variety of technical matters including the timing and crafting of e‐mail responses, the integration of written communication with face‐to‐face therapy, impact on the therapeutic relationship and management of crisis. Ethical issues such as confidentiality and duty of care are also considered.     

Corporate social responsibility among SMEs in Italy

Much of the scholarly discussion on CSR has focused on large corporations even though small and medium enterprises (SMEs) constitute the bulk of businesses in many countries of the world. According to the Organization for Economic Co-operation and Development (OECD), 99.9% of the corporations in Italy are SMEs employing fewer than 250 people. This study sought to explore the CSR among SMEs including whether they practice CSR as a strategic function, who the main stakeholders were for their CSR activities, the drivers of CSR, and the motivations to engage in CSR. Data were collected from three sources: a survey of executives of a sample of 105 SMEs; qualitative in-depth interviews of the owner–managers of five SMEs and élite interviews with opinion leaders. The sample organizations practiced CSR mainly through informal, internally oriented and relational methods with very little, if any, managerial and strategic approach. A large number of sample organizations viewed employees as the most important stakeholders for CSR communication whereas customers, suppliers, and business partners trailed far behind. Interestingly, the media, government, NGOs, and unions were relegated to the bottom of the list. Networks of personal relationships (including that of owner–managers and top executives) were frequently used to conduct CSR activities.     

Asian Community Mental Health Services at 35: a pioneering ethnic organization (1973-2008)

Asian Community Mental Health Services is a nonprofit organization that delivers mental health services to primarily Asian and Pacific Islander communities. From its early beginnings and over its 35-year history, the agency has had to overcome numerous challenges, including gaining legitimacy as a culturally specific nonprofit, combating stigma surrounding mental health issues within the Asian Pacific Islander community, building resources to fund service delivery, and developing an educated and culturally sensitive workforce. The history of the organization highlights the multiple challenges and rewards of developing a culturally specific nonprofit in an urban area as well as the important role that internal operations play in relation to nonprofit expansion and growth.     

Lessons for successful nonprofit governance

Boards of nonprofit organizations malfunction as often as they function effectively. As the best-managed nonprofit organizations demonstrate, both the board and the executive are essential to the proper functioning of a nonprofit organization. These administrative organs must work as equal members of a team rather than one subordinate to the other. Moreover, the work of the executive and the board does not divide neatly into policy-making versus execution of policy. Boards and executives must be involved in both functions and must coordinate their work accordingly. In a well-functioning nonprofit organization, the executive will take responsibility for assuring that the governance function is properly organized and maintained.     

As You Sow,So Shall You Reap?

Foundations’ capacity‐building grant programs strive to bolster performance and outcomes for their nonprofit grantees. Yet with few outcome evaluations of such programs, we have limited understanding of whether these capacity‐building efforts achieve their intended result. This study evaluates fifteen years of data for one foundation's capacity‐building grant program to understand whether targeted capacity building for financial management and development contributes to nonprofit financial growth. The authors examine the management–performance link in this context and inform sector leaders who dedicate resources to capacity‐building programs about the outcomes of these efforts.     

“Put me in,Coach”: A pilot evaluation of executive coaching in the nonprofit sector

The use of executive coaching within the nonprofit sector has received increased attention over the past decade as a mechanism to build capacity and address issues of burnout and turnover among executives. This article presents the results of an evaluation of a pilot six‐month executive coaching program that was implemented in 2005 in an urban metropolitan area. The evaluation collected data through surveys and semistructured interviews with nine executive directors and five coaches who participated in the pilot and analyzed the data to assess the effectiveness of the delivery and usefulness of the experience. The coaching experience was rated as very helpful and supportive of the development of executive directors as nonprofit leaders.