Corporate funding of the arts in a turbulent environment

Focusing on funding in culture and the arts, the author identifies a distinctive logic of company support for nonprofit organizations. Business giving is increasingly disciplined around company objectives, giving levels are driven by pretax earnings, and giving decisions are the province of managers who draw advice less from the arts community or public agencies than from other companies. At best, turbulence in government funding has modest effect on corporate support. In turn, change in corporate support has little impact on public backing. The separate logics of corporate and government support imply separate and distinctive long-term development strategies for nonprofit organizations.     

How the State Shaped the Nonprofit Sector: Public Funding in British Columbia

This article examines how the state has used its spending power to shape the nonprofit sector in British Columbia since the 1960s. The province's thriving nonprofit sector and its polarized political culture provide an ideal case study for exploring the relationship between the state and nongovernmental organizations. The following study documents changes in state policy, the trajectory of funding, funding patterns, and organizations that have received state funding. Although public funding for nonprofits in Canada has been pervasive for decades, there is little empirical evidence on the nature and scope of this funding. This article is based on an innovative new database that provides a comprehensive list of grants from the provincial government to nonprofit organizations between 1960 and 2014. Despite concerns regarding cuts to public funding in recent years, this study finds that there has been an overall increase in funding. However, there has also been a significant shift in funding from women's issues to Aboriginal peoples since the early 2000s.     

Nonprofit Advocacy Tactics: Thinking Inside The Box?

As part of a social change agenda, nonprofit organisations engage in activities that contribute to debate and influence the development of public policy. This article presents the initial findings from a study investigating whether nonprofit organisations do participate in advocacy activities and if they do, how are they advocating and engaging in public debate without risking their current and future sources of funding. The key findings from the research have identified that the extent of advocacy by the nonprofit organisations studied has not diminished. A model, built on the findings from the literature on how nonprofit organisations approach advocacy, is applied to explain the advocacy activities by the case study organisations. These nonprofit organisations are identifying what they see to be the appropriate advocacy strategies to fit their organisational objectives, policies, funding sources and resources.     

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.     

Public funding and institutional reorganization: Evidence from the early kindergarten movement

During the last quarter of the nineteenth century, nonprofit kindergartens exhibited many modern characteristics such as comprehensive services, community outreach, and developmentally appropriate practices. By the beginning of this century, most of those modern characteristics had been eliminated as kindergartens became integrated into the public school system. This article analyzes the institutional reorganization of nonprofit kindergartens under public control by applying and extending Thomas H. Jeavons's framework. The author argues that the observed institutional reorganization was caused by adaptation to the legitimizing principles of the public sector. It is important to understand this dynamic well to correctly assess the effects of public funding and ownership on nonprofit organizations. This article is especially relevant to those following policy arguments for public funding of preschool programs.     

Small organization mergers in arts and humanities

This chapter discusses a case study of the merger between two relatively small organizations: a local nonprofit arts council and a public county‐level humanities commission. As this case deviates from other merger analyses that tend to focus on larger health and social service agencies, the chapter examines how well key findings of the nonprofit merger literature apply to mergers of organizations of smaller size and in other fields. Generally, we find that the merger literature so far provides sufficient guidance for nonprofit managers in fields such as the arts, where merger pressures have only now begun to mount.     

Community as a factor in implementing interorganizational partnerships: Issues,constraints, and adaptations

This article reports findings from a community‐based study of collaboration among seven nonprofit human service agencies in a very low‐income urban neighborhood. The project, funded by a federal demonstration grant, was developed to prevent child abuse and neglect as an alternative to the existing public child welfare system. Findings suggest that privatization, funding uncertainties, and community‐level factors posed external stressors that constrained executives' ability to collaborate. The article identifies five key stressors, analyzes how each constrained the partnership, and then discusses specific adaptations made by executive leadership in political, technical, and interpersonal areas that facilitated strategic adjustment and realignment in a very complex interorganizational arrangement and set of relationships. Finally, implications are drawn for nonprofit managers, social policy, and nonprofit research.     

Access to Philanthropic and Commercial Income Among Nonprofit Community Service Organisations

Governments depend on nonprofit, voluntary sector organisations to deliver social and community services, and public funding is the sector’s most important income source. However, in many countries, public funding for social services is becoming more limited, conditional and precarious, and governments are encouraging nonprofits to diversify their funding base, and shift their reliance to income from market activity and private donations. This article is concerned with access to philanthropic and commercial funding among nonprofits, and the factors affecting it. It firstly discusses an emerging policy agenda to promote private funding among nonprofit community service providers. Then, multivariate analysis of survey data from 521 Australian nonprofits shows which organisations access income from client fees, business activities, community fundraising, and philanthropic foundations. By exploring inequalities in the distribution of these main sources of private funding, the article helps identify the types of organisations that face challenges in establishing and sustaining streams of private income, and which are likely to require ongoing public support.     

Exploring the link between government funding and efficiency in nonprofit colleges

Previous literature has suggested that federal funding can hinder the efficiency of nonprofit organizations, but this has yet not been empirically tested. This study used a two‐stage data envelopment analysis (DEA) model to measure the efficiency of a set of private nonprofit teaching‐oriented colleges, then estimate the impact of federal and state funding on organizational efficiency. The findings indicate that, on average, increases in neither state nor federal funding effect efficiency of nonprofit colleges. Increasing state funding negatively impacted the efficiency of public colleges (N = 799). This study suggests that the challenges for nonprofits that accompany government funding may not rise to a quantifiable negative effect on efficiency.     

Successful collaboration between the nonprofit and public sectors

Public and private funding sources often require nonprofit organizations to provide evidence of partnership with a governmental entity before financing a project. However, the circumstances under which working partnerships between the nonprofit and public sectors are forged and sustained have not been fully studied. This article presents the findings of a case study of land trusts and local governments and identifies conditions that foster successful collaboration. Social factors such as experience on the part of key personnel in working with the opposite entity and genuine affection for each other are more important than economic benefits. This suggests that a nonprofit agency interested in creating a viable partnership to improve a project should give careful consideration to assigning staff.     

The double-edged sword of social service contracting: public accountability versus nonprofit autonomy

The increased role of government contracts in the funding of nonprofits has heightened tensions as governments seek accountability and nonprofits seek to preserve autonomy. Considering both sides of the contract market this article suggests that the threat of government funding is exaggerated. Nonprofits are attractive contractor options because of their experience and trustworthiness. Governments should recognize that excessive intrusions limit the advantages of the nonprofit sector. At the same time, nonprofits should be conscious of the implications of public funding, just as they must be of other sources of funding.     

Using Social Network Analysis to Enhance Nonprofit Organizational Research Capacity: A Case Study

As donor agencies become more specific in funding requirements, research that can demonstrate the collaborative efforts of a nonprofit agency with its organizational neighbors and how those efforts pay off in terms of capacity and provision of services is highly useful. Recognizing these benefits, a local funding agency in Virginia commissioned a study to look at the ways in which social network analysis (SNA) can enhance the data resources available to nonprofits for funding and grant requests. In this article, we present a case study of a network of 52 nonprofit organizations to illustrate the viability of SNA in terms of funding and research needs specific to nonprofit organizations. We discuss the outcomes of the case study in terms of how the visual and metric outputs of SNA can be used by nonprofits to enhance the accomplishment of their organizational missions and strengthen their grant requests.     

Social forces and decision‐making by gatekeepers in arts organizations

Gatekeepers in arts organizations have an important role to play in determining which artistic works the public gets to experience. Performing arts organizations provide a good example of how these decisions made by gatekeepers necessarily delimit the art that the audiences will experience. This article catalogs the social forces that influence individual decision‐makers. Individual level forces like social background, embeddedness in social networks, and perceptions of the organization and organizational level forces like organizational structure, funding, and size all affect what they ultimately produce. This, in turn, allows us to better understand the work these companies produce form a sociological perspective.     

Casa de esperanza

Many nonprofit organizations struggle with the challenges of staying true to their mission in light of increasing reliance on public revenue streams. Casa de Esperanza, a mid‐size nonprofit in St. Paul, Minnesota, faces these tensions. Although it was founded to support Latinas who experience domestic violence, public funding streams mandated a different approach. This case explores the trade‐offs the organizational leaders must consider at a critical juncture in their development. Copyright © 2004 Jodi Sandfort.     

Making space: the counterpublics of post‐apartheid independent literary publishing activities (1994–2004)

This article explores how independent literary publishing activities in South Africa during the period 1994–2004 sought to engage in public debate and deliberation, and thereby moved beyond purely literary concerns. It focuses on the publishing activities of five publishers – Dye Hard Press, Botsotso, Timbila, Kotaz and Chimurenga – and draws on a series of interviews with the publishers. The article considers how the publishers understood their publishing activities as acts of public engagement and contestation, and argues that they can usefully be thought of as counterpublics, a characteristic which feels unique to the post‐apartheid period. It argues that public sphere theory offers a way of talking about the divergent characteristics of the publishing activities, which can be considered acts of poetic world making that position themselves in contestation with the post‐apartheid mainstream. However, it suggests that their relationship to the mainstream is at times ambivalent and their independence not always assured. This is particularly felt in the reliance of some of the publishers on state and state‐aligned arts bodies for funding for their survival, but also in other areas such as their difficult relationship with commercial book dealers and the mainstream media. Their proximity to the mainstream in terms of state funding also suggests the need for a theorisation of what we might call ‘embedded counterpublics’ in highly stratified societies such as South Africa.     

Nonprofit cash holdings and spending: The missing role of government funding

Charitable nonprofit organizations have long been under scrutiny with regard to how they manage excess funds, particularly cash holdings. Given previous empirical evidence, agency problems have been treated as an effective lens to explain the consequences of cash holdings among nonprofits. That is, nonprofit managers spend cash holdings for their own interests as opposed to the social interests of the organization. This study revisits the question of how charities manage extra cash and further examines the role of government funding in nonprofits' spending decisions. The results suggest that nonprofit managers make decisions on how to manage extra cash in accordance with the level of cash holdings; therefore, agency problems do not effectively explain how nonprofits manage extra cash. Furthermore, the results illustrate two contrasting roles of government funding in nonprofits' financial behavior: government funding may be used to monitor unscrupulous behaviors among managers, but it may also restrain nonprofits from investing in human capital.     

Understanding Nonprofit Advocacy in Non-Western Settings: A Framework and Empirical Evidence from Singapore

Research on nonprofit advocacy in non-Western settings is still rather limited. In this article, we address this limitation by examining the advocacy practices of nonprofit charitable organizations in Singapore, a non-liberal democratic city-state in Southeast Asia with a history of colonial rule. We ask the following questions: What are the key environmental and organizational factors that influence the scope and intensity of advocacy activities of nonprofit organizations? In particular, what is the effect of the political context on the advocacy strategies and tactics among these organizations? To answer these questions, we present a three-factor explanatory model of nonprofit advocacy incorporating cause, capacity, and context. The research methodology entails a survey of nonprofit executives from a random sample of Singapore human and social service organizations. Our findings shed light on how the various aspects of the political context—perceived opportunities and threats from government intervention and dependence on government funding—shape nonprofit advocacy in a non-Western setting.     

Fundraising in the new philanthropy environment: The benefits and challenges of working with giving circles

This article reports on an exploratory study to understand the impact of the new philanthropy on funding recipients by asking nonprofit professionals about their experiences working with giving circles. Giving circles are growing in number across the United States. They are attractive to new philanthropy donors who pool their resources and then decide together where to give them away. They also frequently include social, educational, and volunteer engagement components. Giving circles seem to be an important source of new and expanded resources for nonprofit organizations, but there are both benefits and challenges to working with giving circles that reveal several problematic tensions for nonprofit funding recipients, the philanthropic relationship, and society more broadly.     

The State of Nonprofit Finance Research across Disciplines

The single largest determinant of nonprofit organization success is financial sustainability. Yet the study of nonprofit finance spans multiple disciplines, creating barriers for new researchers to the field. To address this challenge, this study addresses three primary questions across disciplines: How much nonprofit finance research has been conducted, what is the content of this research, and what is the impact of this research? This systematic literature search revealed 619 nonprofit finance research articles in twenty‐seven journals published in the disciplines of nonprofit management, public administration, accounting, and economics and finance between 1970 and 2014. The vast majority (415 of the 619 identified articles) were published in nonprofit management journals (either Nonprofit and Voluntary Sector Quarterly or Nonprofit Management & Leadership ). Across disciplines, there is an emphasis on determinants of giving, but we note some variation; for example, there is more emphasis on government funding in journals outside of nonprofit management. The impact of this research is significant, with more than 32,630 citations, or an average of 52.71 times per article. The resulting bibliography may be helpful to researchers seeking to discern the status of extant nonprofit finance research across multiple disciplines.     

“We Actually Trust the Community:” Examining the Dynamics of a Nonprofit Funding Relationship in New Zealand

Funding relationships in nonprofit management are increasingly defined by a philosophy of rational management, characterized by measurement of outputs and benchmarking, which represents an audit culture system (Burnley, Matthews, & McKenzie, 2005). There is concern that these approaches are constantly undermining the mission of community service nonprofit organizations (Darcy, 2002). In this research, we analyzed the management of funding relationships by examining dynamics within a nonprofit funding relationship in New Zealand. Through focus groups we explored the relationship between 17 representatives from nonprofit organizations and four Board members of a funding Trust. The management of this funding relationship was characterized by an appreciation of the diverse nature of nonprofit organizations, a balance between trust and control, and communication. We suggest that elements of these dynamics could be incorporated into nonprofit funding relationships in order to challenge an over-reliance on audit culture systems, and to re-establish relationships characterized by interaction between nonprofit organizations and their funders. Finally, we call for future research in this area.