Making sense of accountability: Conceptual perspectives for northern and southern nonprofits

This article examines the concept of accountability from various disciplinary lenses in order to develop an integrated understanding of the term. Special attention is devoted to principal—agent perspectives from political science and economics. An integrated framework is developed, based on four central observations. (1) Accountability is relational in nature and is constructed through inter‐ and intraorganizational relationships. (2) Accountability is complicated by the dual role of nonprofits as both principals and agents in their relationships with other actors. (3) Characteristics of accountability necessarily vary with the type of nonprofit organization being examined. (4) Accountability operates through external as well as internal processes, such that an emphasis on external oversight and control misses other dimensions of accountability essential to nonprofit organizations. The analysis draws from the experiences of both Northern and Southern nonprofits, that is, organizations based in wealthy industrialized regions of the world (the global North) and those in economically poorer areas (the South).     

Managing electronic documents and work flows: Enterprise content management at work in nonprofit organizations

Web management and knowledge management systems have made significant technological advances, culminating in large information management systems such as enterprise content management (ECM). ECM is a Web‐based publishing system that manages large numbers of electronic documents and other Web assets intended for publication to Web portals and other complex Web sites. Work in nonprofit organizations can benefit from adopting new communication technologies that promote collaboration and enterprisewide knowledge management. The unique characteristics of ECM are enumerated and analyzed from a knowledge management perspective. We identify three stages of document life cycles in ECM implementations—content, reification, and commodification/process—as the content management model. We present the model as a mechanism for decision makers and scholars to use in evaluating the organizational impacts of systems such as ECM. We also argue that decision makers in nonprofit organizations should take care to avoid overly commodifying business processes in the final stage, where participation may be more beneficial than efficiency.     

Nonprofit organizations' use of the internet: A content analysis of communication trends on the internet sites of the philanthropy 400

To evaluate the current status of communication and fundraising strategies on the Internet, a stratified random sample of the Chronicle of Philanthropy's Philanthropy 400 was content‐analyzed in mid‐January 2005. Web sites were coded on variables identified in practitioner and scholarly literature on issues of accountability, fundraising practices, and interactive communication strategies. Chi‐square analysis found that the top nonprofit organizations included copies of their annual reports, organizational goals, and mission statements, while second‐tier organizations were more likely to use a sales approach by using e‐commerce technology and terminology to process online donations.     

A Comparison of Public and Charter School Board Governance in Three States

In this article we compare the governance behaviors and preferences of nonprofit charter school board members with traditional elected public school board members in Michigan, Minnesota, and Wisconsin. Using originally collected survey data, we find that nonprofit charter school board members are less likely to place emphasis on relations with the public, engage in conflict, be ideologically diverse, and perceive the executive as responsible for key governance tasks than traditionally elected public school board members. The findings provide new information for policymakers weighing the potential benefits of education privatization through the use of nonprofit charter schools against the potential loss of democratic board accountability.     

Accountability in organizational life: Problem or opportunity for nonprofits?

This article reviews the notion of accountability as an intrinsic experience in daily organizational life and contrasts it with the more traditional construct of accountability as an external control or monitoring device. The concept of “felt responsibility” can provide an opportunity to enhance the effectiveness of nonprofit organizations. Both research and the author's field experiences in nonprofit settings suggest how nonprofit leaders and managers can use felt responsibility to help individuals act with accountability to themselves and to others. The concept of “conversation for accountability” poses a pragmatic opportunity for nonprofits in particular to turn the current environment of finger pointing and aggressive monitoring into an enabling organizational practice that benefits both nonprofit members and their clients or constituencies.     

Quality of web-based information on cannabis addiction

This study evaluated the quality of Web-based information on cannabis use and addiction and investigated particular content quality indicators. Three keywords ("cannabis addiction," "cannabis dependence," and "cannabis abuse") were entered into two popular World Wide Web search engines. Websites were assessed with a standardized proforma designed to rate sites on the basis of accountability, presentation, interactivity, readability, and content quality. "Health on the Net" (HON) quality label, and DISCERN scale scores were used to verify their efficiency as quality indicators. Of the 94 Websites identified, 57 were included. Most were commercial sites. Based on outcome measures, the overall quality of the sites turned out to be poor. A global score (the sum of accountability, interactivity, content quality and esthetic criteria) appeared as a good content quality indicator. While cannabis education Websites for patients are widespread, their global quality is poor. There is a need for better evidence-based information about cannabis use and addiction on the Web.     

Social responsibility and corporate web pages: Self-presentation or agenda-setting?

The recent growth of the Internet and World Wide Web has become a focus for both the popular press and social science scholars. The authors of this study examined how large corporate entities are making use of the Web to present themselves as socially responsible citizens and to advance their own policy positions.Analysis of a random sample of Fortune 500 companies revealed 90% had Web pages and 82% of the sites addressed at least one corporate social responsibility issue. More than half of the Web sites had items addressing community involvement, environmental concerns, and education. Few corporations, however, used their Web pages to monitor public opinion on issues or advocate policy positions. The number of social responsibility items on a Web page was positively correlated with the size of an organization and the implementation of tools to make a Web site more navigable, but was unrelated to a corporation's ranking within its industry. The researchers also distinguished between messages that proclaim the corporation does “no-harm”, and items that extol an organization's “good deeds.” Industry groups differed on the no-harm subscale but not good deeds.     

Resource-Based Accountability: A Case Study on Multiple Accountability Relations in an Economic Development Nonprofit

In economic development nonprofits, the disparity between the nonprofit’s, its donor’s and the poor’s expectations concerning poverty alleviation has been identified as the main reason for ineffective aid delivery. The study at hand contributes to this discussion by following this question: How do the nonprofit, its donors, the supported SMEs, and the poor refer to the nonprofit’s mission of poverty alleviation when negotiating accountability? To answer this question, the study follows the literature on accountability and resource dependency and presents results of an empirical case study on multiple accountability relations between a donor, a development aid nonprofit, its supported SMEs, and the poor living in the environment of the supported SMEs. The results show a pattern we call “resource-based accountability.” This pattern is constituted by the observation that most of the stakeholders tried to meet the expectations of the resource owners with respect to the resource owner’s understanding of successful poverty alleviation. Finally, the paper introduces a hypothesis for further studies.     

What Nonprofit Executives Want and What They Get from Board Members

In theory, nonprofit boards of directors exist to perform mission‐setting and oversight functions that help to ensure organizational accountability. Yet there is evidence that board behavior often falls short of this ideal. Using survey data from a sample of 241 executive directors of nonprofit agencies, we investigated whether nonprofit boards are meeting executive directors’ expectations, and if not, what factors explain this? We find that although board behavior tends to align closely with executive directors’ preferences for involvement in administration and management tasks, there is a greater disconnect between board behavior and executive directors’ preferences for involvement in mission‐setting and oversight duties. Factors that mitigate this gap include organizational professionalization and stability, whereas more extensive reliance on government funding exacerbates it. Female executive directors experience a greater disconnect in their preferences for board involvement and actual board involvement than male executive directors. We conclude by discussing the implications of our findings for both theory and practice.     

Linking Citizen Satisfaction with E-Government and Trust in Government

This article asks how Internet use, citizen satisfaction withe-government, and citizen trust in government are interrelated.We first review the literature on trust and explore how radicalinformation technologies may work to alter the production ormaintenance of trust. We then develop hypotheses about how citizens'experience with e-government, satisfaction with e-governmentand government Web sites, and trust in government are interrelated.Moreover, the model for e-government and Web site satisfactionincorporates citizen perspectives on electronic transaction,transparency, and interactivity. Using data obtained from theCouncil on Excellence in Government, we then develop and testa two-stage multiple-equation model that simultaneously predictsexperience, satisfaction, and trust. Findings indicate thatgovernment Web site use is positively associated with e-governmentsatisfaction and Web site satisfaction and that e-governmentsatisfaction is positively associated with trust in government.We also find that while citizens are generally satisfied withthe electronic provision of information (transparency), thereis some dissatisfaction with the transaction and interactivityof Web sites. We conclude that electronic government strategies—transaction,transparency, and interactivity—are important factorsthat directly affect e-government satisfaction and indirectlyaffect trust. Individuals who use government Web sites are notonly critical consumers but also demanding citizens.     

Conducting and utilizing evaluation for multiple accountabilities: A study of nonprofit evaluation capacities

This article combines the evaluation capacity building and nonprofit accountability literature to examine how nonprofits use evaluation data to address stakeholder expectations. Our study investigates how staff competency, technological resources, learning climate, and strategic planning influence a nonprofit's ability to demonstrate upward, lateral, and downward accountabilities. Results indicate different combinations of evaluation capacities matter more for particular stakeholder groups. We argue a more integrative nonprofit accountability requires that managers and staff know how to utilize evaluation results for internal and external audiences. Nuances between specific evaluative capacities and their influences on multiple accountabilities suggest several implications for practice.     

“To be a business and to keep our humanity”

In recent years, the political nature of nonprofit funding has been well established, with research focusing on increased demands for accountability (Eikenberry and Kluver, 2004), difficulties in selecting accountability measures (Reed, Jones, and Irvine, 2005), and the shift from organizational mission that can occur while trying to adhere to funding requirements (Adcroft and Willis, 2005; Parsons and Broadbridge, 2004). This article examines the dynamics between a funder and the nonprofit organizations it funds within an evolving accountability process. Specifically, we use qualitative methods to examine the negotiations between the funder and the nonprofits. Both sides in the funding relationship face tensions as they attempt to work within the constraints of this specific funding regime while trying to maintain their focus on social justice outcomes.     

Innovation,accountability, and independence at three private foundations funding higher education civic engagement, 1995 to 2005

This case study looks at changes in private foundation funding for higher education civic engagement from 1995 to 2005. The focus is three large, established foundations that were U.S. national leaders in supporting this activity during these years: Carnegie, Pew, and Kellogg. Data sources include (1) in‐depth conversations with four strategically placed foundation insiders and six nationally recognized campus leaders and (2) scans of Web sites of the three foundations that document the change in funding priorities over time, plus Web sites of the main campus initiatives supported and national campus civic engagement organizations such as Campus Compact. Research findings con‐ firm and specify other studies that suggest that foundations shift their funding priorities according to their perceived role as innovators, pressures to be accountable and show clear results, and their independence as private organizations. The article concludes by raising questions about private foundations generally in relation to issues of innovativeness, accountability, and independence.     

An application of the nonprofit virtual accountability index: Accountability in sport for development and peace

In this research note, we examine web-based accountability practices of human service nonprofits. Data were collected directly from the organizational websites of an international sample of 532 organizations involved in operating sport for social change programs, more commonly known as the field of sport for development and peace. Websites were coded using the nonprofit virtual accountability index—a theoretically grounded and robust tool—to measure information and interactivity available for stakeholders across five dimensions of accountability. Analyses of variance and independent t-tests were used to test potential group differences based on geographical region, the thematic types of social change efforts, and the type of sport used to deliver programming. The results of this analysis highlight the critical importance of geographical location and other organizational variables for web-based accountability practices. Furthermore, the results allow nonprofit leaders to identify common areas in need of improvement for smaller and emerging nonprofits.     

The potential of Web sites as a relationship building tool for charitable fundraising NPOs

The Internet and especially the new challenges within Web 2.0 provide organizations with the possibility of encouraging two-way communication and engaging publics in dialogue. Charitable fundraising nonprofit organizations (NPOs) can particularly benefit from the Web's relationship building potential. This study aims to explore the potential of Web sites as an online-communication tool of Swiss NPOs. Via content analysis, the Web sites of 134 Swiss charitable fundraising NPOs were examined in order to point out how those organizations are using the Web to create dialogic relationships with their most important stakeholder groups, which are potential donors and the media. Results indicate that the potential of the Internet for dialogic communication is not used efficiently by most NPOs. Nevertheless, NPOs seem to be acknowledging the importance of engaging publics in dialogue, as most of them replied to information requests from potential donors and the media.¹     

The Nonprofit Catallaxy: An Austrian Economics Perspective on the Nonprofit Sector

This paper examines the nonprofit sector from the perspective of the Austrian school of economic thought. In contrast to the traditional market failure approach, the Austrian school locates the role of the nonprofit sector in the facilitation of the spontaneous order and the utilization of local dispersed knowledge about the societal needs through a Hayekian “discovery procedure.” Another contribution of the Austrian school is in calling attention to the “calculation challenge” faced by the nonprofit sector, i.e., the reduced role of monetary signals as the informational basis for decision making. The calculation challenge brings up the important issue of societal feedback mechanisms operating in the nonprofit sector. It is shown that, in the nonprofit sector context, this challenge takes the form of the accountability problem.     

Resolving Accountability Ambiguity in Nonprofit Organizations

Accountability is a much studied subject in the social sciences and is known for its complexity, context dependence, and ambiguity. By conducting a comprehensive literature review and analysis across nonprofit, public, and private sector literatures, this article identifies the causes of ambiguities present in many accountability frameworks and describes the trend toward understanding accountability as a constructed concept combining both instrumental and interpretive elements. The relationship between legitimacy and accountability is considered. The authors develop a holistic accountability framework that facilitates defining and implementing accountability in complex, multi-stakeholder environments, by providing a means to operationalize commonly encountered but ambiguous accountability goals through a social process of deliberative dialogue. The authors conclude by summarizing limitations of the approach and describing future research needed.     

Toward a valid approach to nonprofit efficiency measurement

Past literature in nonprofit management uses the overhead ratio of nonprofits as a measure of efficiency. Although the overhead ratio might measure top‐heaviness, we argue that it does not measure nonprofit efficiency. To investigate this, we use financial and operational data to rank the efficiency of Habitat for Humanity affiliates with the overhead and administrative ratio, as well as data envelopment analysis (DEA) and stochastic frontier analysis (SFA), two of the most popular efficiency measures. While the DEA and SFA rankings are statistically correlated, overhead ratio rankings are negatively correlated with both SFA and DEA rankings. We argue that nonprofit scholars, managers, and donors should move away from concepts and measures of efficiency based on financial ratios, and toward ones that embrace maximizing what nonprofits are able to make and do.     

Government,funded nonprofits,and accountability

Internationally, nonprofit organizations are being held to account for how they spend public funds. This issue of accountability has emerged as a theme in nonprofit-state relationships. Exploring the state side of that relationship in Australia, the author suggests that significant constraints hinder the ability of state funding bodies to manage accountability processes for grant funds. The interviews summarized and reported here were conducted before the full impact of a contract regime was felt. The issues identified permit reflection on the possible mediating impact of different political systems on accountability processes, and on the limitations of principal-agent frameworks in building accountability processes and state-nonprofit relations.     

Funders as principals

This article examines the tensions that surfaced for three nonprofit funding intermediaries—tensions between their historic practices and the new practices required to use performance measurement to ensure greater accountability and results among their grantees—and analyzes these tensions in light of literature on philanthropic and accountability relationships. From this analysis, the article makes three points. First, philanthropic relationships are not equivalent to accountability relationships. Second, because of these differences funders that adopt performance measurement may encounter tensions as these new practices challenge the importance of other philanthropic concerns. Third, without a systematic way to attend to these concerns when adopting performance measurement, funders face an impoverished choice: reward measurable results or fall back on supporting good intentions.