Does Revenue Diversification Predict Financial Vulnerability Among Non-governmental Organizations in sub-Saharan Africa?

Non-governmental organizations (NGOs) in sub-Saharan Africa (SSA) experience financial challenges that hinder efforts to promote social change and development. Revenue diversification is one adaptive response to these challenges, yet there is a lack of evidence concerning the relationship between revenue diversification and financial vulnerability among NGOs in SSA. Using data from an online survey of NGOs (N = 170), we hypothesized that a greater number of revenue sources is associated with lower probability of financial vulnerability, while a greater level of dependence on international funding is associated with higher probability of financial vulnerability. Results from probit regression models controlling for organizational characteristics indicated partial support for hypotheses. Having four or more types of revenue was associated with 87% lower probability of financial vulnerability compared to having one type of revenue (p < 0.001). Also, NGOs with up to half of their budgets covered by international sources had 17% lower probability of financial vulnerability compared to NGOs with no international funding (p < 0.05). Implications for future research to further explore these relationships are discussed.     

Information,Community, and Action on Sina-Weibo: How Chinese Philanthropic NGOs Use Social Media

This study explored Chinese NGOs’ behavior on domestic social media platforms. By observing 155 rural education NGOs on one of China’s most popular social media sites, Sina-Weibo for 6 months, we found that despite Internet censorship and the unique government-NGO relationship in China, the Chinese NGOs are active on Weibo. Like their Western counterparts, the Chinese NGOs use social media to share information, build community, and mobilize resources. Because the Chinese NGOs face some unique legitimacy problems, aside from using social media to attract followers, they also use social media’s powerful broadcasting function to improve organizational legitimacy. To fit into the Weibo community, the organizations use a large amount of slang and emoji, and publish a significant number of posts which cover popular topics, but are not related to their work.     

Family involvement in small,local nongovernmental organizations

The involvement of family members in nongovernmental organizations (NGOs) has been largely overlooked in the literature on the nonprofit and voluntary sector. This study draws on the family business literature to explore the main features of family involvement and the implications for organizational survival and effectiveness. It shows that the family is an important research variable. Exploring the NGO sector in India, the article demonstrates that family involvement can significantly influence the management of human and material resources, governance, and decision making. Although there are several advantages to family involvement, a large overlap of family and organization can threaten credibility and legitimacy. Family‐based NGOs must stress their value orientation to counter negative perceptions.     

Stuck in the Middle: Maintaining the Organizational Legitimacy of the Regional Environmental Center

Maintenance of legitimacy is central to the survival of any organization and is of particular importance to non-governmental organizations (NGO) reliant on external sources of income. Interaction with the external environment plays an important role in determining organizational legitimacy, shaping actions and determining opportunities. The ability of an organization to effectively respond to and influence the external environment can potentially strengthen its legitimacy. This paper considers the issue of organizational legitimacy by using resource dependence and institutional theories to analyze the development of the Regional Environmental Center for Central and Eastern Europe (REC). The findings indicate that it is possible for an organization to maintain legitimacy through adaptation, responding to the rise and fall of external opportunities and challenges. As predicted by institutional theory, it also argues that external environmental factors place increasing pressure for conformity over time, limiting scope to manoeuvre over the longer-term.     

Determining Factors in Online Transparency of NGOs: A Spanish Case Study

The social demand of transparency in nongovernmental organizations (NGOs) has increased. This is due to their social and economic impact and the incidences of fraudulent behavior by some international NGOs managers. In this regard, an improved and abundant dissemination of information by NGO is essential. The Internet is considered a strategic communication tool in such dissemination. Following an explanatory research line, this article aims to identify the influence of the factors ??organizational size??, ??organizational age??, ??public funding??, ??legal form??, ??internationalization??, ??board size??, and ??board activity?? in the dissemination of web page information. The results show that only the factors of ??organizational size??, ??public funding,?? and ??organizational age?? are statistically significant.     

The Governance of International Nongovernmental Organizations: How Funding and Volunteer Involvement Affect Board Nomination Modes and Stakeholder Representation in International Nongovernmental Organizations

The governance of civil society organizations (CSOs) is a crucial determinant of organizational legitimacy, accountability, and performance. International nongovernmental organizations (INGOs) are a subtype of CSOs and have received a lot of attention as actors in global governance. Research suggests that INGOs can follow a membership model, where the board is elected by the membership, or a board-managed model, where the board is appointed to represent major stakeholders. Following resource dependency theory, we argue that the choice between these two models depends on the INGOs different sources of funding and the degree of volunteer involvement: As donors and volunteers provide important resources, they are in turn granted the right to nominate board members or to sit on the board. In our quantitative study we show that individual members, regional member organizations, and governmental donors hold a stronger position in the governance of INGOs than philanthropists, foundations and volunteers. Our results inform research on CSO governance by highlighting the relevance of board nomination modes and by showing how CSOs can incorporate stakeholders into their governance mechanisms.     

Which Nonprofit Gets More Government Funding?

Government represents one of the most important funding sources for nonprofit organizations. However, the literature has not yet provided a systematic understanding of nonprofits’ organizational factors that are associated with their receipts of government funding. This study combines interorganizational relationships and organizational institutionalism literature to examine the determinants of nonprofits’ obtainment of government funding. Based on a survey of human service nonprofits in Maryland, this research finds that nonprofits with higher bureaucratic orientation, stronger domain consensus with government, and longer government funding history are more likely to receive government contracts and grants. Nonprofits’ revenue diversification, professionalization, and board co‐optation might have very limited impacts.     

NGO Networks,the Diffusion and Adaptation of NGO Managerialism,and NGO Legitimacy in Latin America

Nongovernmental organization (NGO) networks have become key instruments used by NGOs in Latin America. Because these networks have important roles to play in advocating for the sector, earning public support, and improving the provision of public goods and services, understanding these networks is important to understanding the NGO sector more broadly. The article examines how NGO networks use collective texts to diffuse and adapt managerial practices. NGO networks use elements of managerialism and their adaptations to signal quality, secure recognition in social development, identify strengths and weaknesses of the sector, and define civil society in order to garner sector legitimacy. While looking at managerialism from a critical perspective, the article finds that understanding NGOs networks and the diffusion and adaption of NGO practices can further pinpoint effective sources of sector legitimacy and help to strengthen the sector’s role in social development.     

Strategic Responses to Resource Dependence Among Transnational NGOs Registered in the United States

Many of the world’s largest and most impactful transnational NGOs are registered in the United States where they engage in significant fundraising activities to support their global operations. Their reliance on the external environment for financial support exposes them to resource dependence and the possibility of external control. However, as civil society organizations organized as firms, transnational NGOs attempt to maintain operational independence from the donors upon which they rely for funding. This article contributes to resource dependence theory by identifying the strategies that transnational NGOs employ in response to resource dependence, explaining the emergence of strategic response, and exploring the conditions under which NGOs are capacitated to preserve organizational autonomy. The responses transnational NGOs employ include alignment, subcontracting, perseverance, diversification, commercialization, funding liberation, geostrategic arbitrage, specialization, selectivity, donor education, and compromise. Elements of this strategic repertoire empower NGOs to resist external control, even circumventing and influencing donor preferences. Findings are based on in-depth, face-to-face interviews with top organizational leaders from a diverse sample of transnational NGOs registered in the United States.     

The strategies that bind: NGO coalitions and their influence

Abstract This article examines NGOs as strategic organizations that form coalitions in order to influence other actors, particularly international financial institutions. It has three primary aims: to examine NGOs as strategic organizations; to look at a particular type of NGO network, the coalition, which unlike a network involves more value and commitment; and to assess the factors that contribute to their strategies such as changes to the NGO environment. To do this, the resource dependency perspective is utilized to evaluate the influence of various resources (funding, legitimacy and information) on NGOs’ organizational strategy. Oxfam International, the NGO Working Group on the World Bank, and the Bretton Woods Project are three NGO coalitions examined. I conclude that there are differences between NGO networks and coalitions and that the coalitions strategically act and react to changing resources in their environments.     

NGOs’ transnational advocacy networks: from ‘legitimacy’ to ‘political responsibility’?

NGOs that operate as part of transnational advocacy networks face a number of ‘legitimacy challenges’ concerning their rights to participate in the shaping of global governance. Outlining the legitimacy claims that development NGOs make, the article argues that ‘legitimacy’ is a socially constructed quality that may be ascribed to an NGO by actors and stakeholders with different viewpoints. NGOs operating transnationally link disparate communities and conceptions of legitimacy, and undermine the discourse and practice of sovereignty. Therefore such NGOs will find it difficult to be universally regarded as legitimate, especially by states that hold a sovereignty‐based conception of legitimacy. However, relationships are the building blocks of networks, and efforts to improve them should not be abandoned simply because ‘legitimacy’ is too closely connected with sovereignty. In particular, NGOs ought to improve their relationships with the poor and marginalized communities whose interests they claim to promote. To this end, the concept of ‘political responsibility’ is suggested as a pragmatic approach to understanding power relations as they arise in transnational advocacy networks and campaigns.     

Global activism and new media: A study of transnational NGOs’ online public relations

This study examines how transnational nongovernmental organizations make use of new media tools in their public relation activities and what factors influence their online public relations. A survey of communication representatives at 75 transnational NGOs based in the United States found that promoting the organization's image and fund-raising were the two most important functions of new media for the NGOs. Organizational capacity and main objective of the organization were significant predictors of NGOs’ new media use in their public relations. However, organizational efficiency and revenue did not significantly predict NGOs’ use of new media.     

Revenue diversification among non-profits

Although the non-profit literature has grown substantially, the issue of how revenue diversification affects non-profits has not been fully explored. This paper presents several disciplinary perspectives regarding the financing of non-profits, what determines their ability to diversify, and the consequent effects on their behaviour. It first develops an index for measuring revenue diversification and applies it to a national sample of charitable non-profits. The results indicate that, while the perception that most non-profits rely on a single revenue source is exaggerated, the institutions in our sample have somewhat concentrated revenue. Our findings also suggest that the activity of a non-profit and the proportion of its expenditures that it devotes to fund-raising affect its ability to diversify its revenues concentration. While a number of anomalies exist, the weight of our evidence suggests that diversified revenue sources are more likely to be associated with a strong financial position than are concentrated revenue sources. Researchers interested in studying the life-cycle of non-profits, the factors that give rise to stability and growth, and the constraints on non-profit behaviour would do well to consider the diversification index presented in this paper.     

Funding Civil Society? Bilateral Government Support for Development NGOs

Research on the determinants of foreign aid tends to focus on the relationship between donor country priorities and recipient state characteristics, but donors also make decisions about which organizations and programs within countries will receive assistance. Although NGOs increasingly have been recipients of foreign aid, few data are available to investigate which organizations within a given country receive that funding. Donors may prioritize structural characteristics of NGOs or their local ties—or they may seek a combination that blends concern about efficiency and accountability with an interest in developing national civil society. We use original data from Cambodia to explore whether aid is likely to go to managerial organizations (professionalized NGOs and NGOs that utilize modern management tools) or to organizations that are embedded in the domestic context. We argue that managerialism provides legitimacy for NGOs by signaling capacity and accountability to donors, increasing the likelihood of government funding. We argue that local embeddedness also confers legitimacy by aligning community ties and networks to rights-based development, increasing the likelihood of government funding. We find general support for the managerialism argument, but donor agencies do not prioritize direct funding for “indigenous” NGOs—not even among those with high levels of managerialism.     

Leadership succession and the performance of nonprofit organizations: A fuzzy‐set qualitative comparative analysis

Leadership succession is critical to the performance of nonprofit organizations. Existing research has mostly treated leadership succession as an instantaneous event, and it has examined the independent effects of certain factors on organizational performance. However, little research has focused on the combinations of causally relevant factors. This article integrated organizational life cycle, resource dependence, and institutional theories, as well as the organizational fit literature, to explain how contextual and strategic factors combine to affect postsuccession performance. A fuzzy‐set qualitative comparative analysis (fsQCA) was used to analyze 15 succession events in Chinese environmental nongovernmental organizations (NGOs). The study identified four pathways to good NGO performance after succession. It also highlighted that it is not succession per se but the succession context (i.e. founders' control, board governance, professionalization, and political environment) and the strategic orientations of the successor that affect postsuccession performance in nonprofit organizations.     

Predictors of Capacity-Building Needs Among Nongovernmental Organizations in Sub-Saharan Africa

Nongovernmental organizations (NGOs) play important roles in social development in the Global South. However, little evidence exists concerning NGOs’ capacity-building needs. We sought to understand organizational and network factors that explain capacity-building needs. Using an online survey of 282 NGOs in Ghana, Kenya, and Nigeria, we found high levels of capacity-building need, particularly concerning resource development. Using multivariate analyses, we found greater staff size predicted less overall capacity-building need based on a 15-item index (α = .88). Examining individual capacities, receiving at least half of funding from international sources and prior capacity-building assistance were consistent predictors of lower odds of capacity-building need.     

The Effect of Revenue Diversification on Output Creation in Nonprofit Organizations: A Resource Dependence Perspective

Nonprofits continue to be faced with financial challenges to fulfill their missions. Both the academic literature and nonprofit practitioners have explored revenue diversification and concentration strategies to meet these challenges. While these two strategies are essentially antagonistic, both have received support as being viable strategies to create better outcomes for the organization. This article examines whether revenue diversification or concentration strategies lead to greater mission outputs in a nonprofit context. Using resource dependence theory as a guiding framework, two opposing hypotheses are tested to gain more insight into the diversification versus concentration dilemma. A unique dataset is built and utilized to estimate a zero-inflated negative binomial regression model to assess the correlation between revenue diversification and mission outputs. Results indicate that revenue diversification (and not concentration) is associated with an increase in organizational outputs.     

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.     

Acquiring Start‐Up Funding for New Arts Organizations

This article addresses the challenge of assembling financial support for emergent arts organizations. In addition to organizational logistics and the demands of making art, such groups must garner financing from various sources, including governments/foundations, private sector companies, individual donations, and earned revenues. Drawing on the relevant literature, as well as insights from a case study of a recently formed arts organization—the Grand River Jazz Society (GRJS)—a framework is created proposing the key success factors and corresponding core competencies associated with each funding source. Governments and foundations require addressing mission as a key success factor, and navigating bureaucracy is an essential core competency in which early stage arts organizations need to be successful. Businesses, in contrast, look for action as a key success factor, and it is managerial core competencies that lead to sponsorship. Individuals respond to vision and require relational core competencies for successful involvement. Finally, the key success factor for earned revenue is a connection with audience members, necessitating core competencies with a services mindset. The article interweaves the conceptual frame with examples from the GRJS case study and also addresses the challenge of operating with a portfolio of income sources. Finally, results from a survey of fifty‐two arts start‐ups in Ontario, Canada, provides context from a wider group of such organizations with respect to their early stage funding.     

Civil Society Capacity Building for Democratic Reform: Experience and Lessons from Indonesia

This article examines civil society strengthening experience in Indonesia to illuminate issues, challenges, and lessons for non-governmental organization (NGO) capacity building and international donor-supported democratic reform. The authors conceive of capacity as a function of contextual factors, and internal factors associated with an individual NGO or a network of NGOs. Contextual factors that need to be taken into account in Indonesia include weak reform implementation, state distrust of NGOs, and backsliding on some basic freedoms. Among the important internal features of NGOs in democracy promotion are overreliance on confrontational advocacy strategies, shallow organizational capacity, inability to cooperate to leverage impact, limited outreach to indigenous constituencies and sustainability problems. Indonesia’s democracy-promotion NGO coalitions have largely operated as instruments of donor-supported reforms. As they seek to become socially embedded actors pursuing indigenous agendas, they face the need to confront the various expectations of their stakeholders regarding their roles and legitimacy, develop flexibility to respond to new engagements with government and with citizens, and address their internal capacity gaps. Three cases are presented that illustrate both the problems and the encouraging progress with government–NGO collaborations in democratic governance.