The gender pay gap in nonprofit executive compensation in South Florida

In general, systemic imbalance in pay between men and women is well established, but the literature on pay imbalance is mixed for nonprofit executives. Difference in organizational size could be a relevant factor in explaining pay imbalance, as previous research suggests average female nonprofit executives lead smaller organizations. The present study examines the role of governance accreditation on the gender gap in chief executive pay, using a 2 × 2 analysis of covariance to control for organizational size (as measured by annual revenue) when comparing samples of accredited and nonaccredited organizations in South Florida. We found a wage gap for gender, with female executives averaging 12% less compensation than male executives, after controlling for organizational size. No significant effect was found for accreditation; although the only significant difference between genders was in the nonaccredited sample, the findings hint that any trend towards pay equity would be due to a pattern of the male executives in the accredited sample being paid less than their counterparts in nonaccredited organizations.     

Culture and change in nonprofit boards

The actions of boards, like all organizational behaviors, emerge from board culture, which is composed of members' customary practices, shared beliefs, and assumptions about reality. It is a board's culture that enables its participants to deal with ambiguity and complexity by providing familiar meanings and solutions to problems. Board development efforts that do not take these factors directly into account are likely to produce only superficial and short-term changes. This article presents alternative approaches to board development, using two levels of learning drawn from examinations of board cultures.     

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.     

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.     

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.     

Foundations and innovation in the nonprofit sector

Using a sample of 17 foundations that are at the forefront of encouraging innovation this study explored foundations' motivations behind funding innovation, their perceived ability to impact the levels of innovation in nonprofit organizations, and strategies that foundations are using or can use to encourage innovation in nonprofit organizations. The results showed that among the major motives behind funding innovation were leveraging the capital, honoring the foundations' core identity (mission and values), and desiring to encourage innovation in nonprofit organizations. Five strategies/mechanisms that foundations are using/can use to encourage innovation in nonprofit organizations were identified: (a) offering innovation awards/grants as catalysts for innovation, (b) providing risk capital and supporting early stage idea development, (c) educating other foundations on the value of innovation and serving in a convener role, (d) serving as thought leaders, and (e) increasing nonprofit organizations' capacity for innovation. Implications for practice are discussed along with recommendations for future research.     

What's new in nonprofit management?

Managing the Nonprofit Organization: Principles and Practices, by Peter F. Drucker. New York: HarperCollins, 1990. 235 pp., $22.95 cloth. Changing Hats: from Social Work Practice to Administration, by Felice Davidson Perlmutter. Silver Springs, Md.: National Association of social Workers Press, 1990. 160 pp., $12.95 paper. Managing Voluntary and Non-Profit Organizations: Strategy and Structure, by Richard J. Butler and David C. Wilson. London: Routledge, 1990. 190 pp., $55.00 cloth.     

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.     

On a career in nonprofit management

Careers for Dreamers and Doers: A Guide to Management Careers in the Nonprofit Sector, edited by Lilly Cohen and Dennis R. Young. New York: Foundation Center, 1989, $24.95 paper. Doing Well by Doing Good: The First Complete Guide to Careers in the Nonprofit Sector, by Terry W. McAdam. New York: Penguin Books, 1988. $6.95 paper.     

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.     

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.     

Board practices and board effectiveness in local nonprofit organizations

This study of sixty-four locally governed nonprofit charitable organizations used a social constructionist perspective to investigate the relationship between the extent to which nonprofit boards use prescribed board practices and stakeholder judgments of the effectiveness of those boards. A social constructionist perspective implies that different stakeholders use and evaluate different kinds of information in making judgments about board effectiveness. The results suggest that there is wide variation in the use of the prescribed board practices, that judgments of board effectiveness often differ substantially, and that chief executives' judgments of the effectiveness of their boards is moderately related to the extent of use of recommended board practices.     

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.     

Funding uncertainty and nonprofit strategies in the 1980s

The degree to which strategic action is related to changes in the perceived uncertainty of income from major types of funders was examined for a panel of nonprofit organizations. Uncertainty was found to be a pervasive phenomenon. Nonprofits in some parts of the sector reported increases in uncertainty over time, while those in other parts reported decreases. The use of new revenue, legitimation, or retrenchment strategies was associated with the reduction of uncertainty for some types of nonprofit organizations but not for others.