Human capital inflow in nonprofits: Entry‐level employees’ sector shift

Although recruitment and retention of qualified employees are some of the biggest challenges in the nonprofit sector, nonprofit organizations must maintain human capital inflow due to its significant impacts on organizational success. Through person‐organization value fit, this paper explores the factors that influence labor shifts from the public or for‐profit sector into the nonprofit sector in the South Korean context. Specifically, the effects on the likelihood of employees switching to the nonprofit sector from the perspective of eight job satisfaction measures and three education–job match measures are investigated. Two groups of employees (those whose career started in the for‐profit sector and those starting in the public sector) are compared. Results indicate that there is substantial variation between the two groups. In particular, intrinsic job satisfaction has completely different effects on those working in the for‐profit sector than on those working in the public sector regarding their likelihood of having experienced an intersectoral shift into nonprofits. The more public employees are satisfied with intrinsic job rewards, especially job reputation, the more likely they are to move to nonprofits. These results suggest that when employees in the public sector are satisfied with intrinsic rewards they tend to pursue greater intrinsic satisfaction in the nonprofit sector. This paper also reports that education–job match is only significant for those whose first job was in the for‐profit sector.     

Factors Attracting Individuals to Nonprofit Management over Public and Private Sector Management

Little research has sought to identify the distinct advantages that nonprofits offer employees, particularly managers. Drawing upon Weisbrod's theory of managerial sorting (1988), we test a series of hypotheses about the differences among nonprofit, public, and for‐profit organizations that may explain the preference of managers to work in one sector over the other. We use pooled cross‐sectional data from the General Social Survey to test managerial sorting. We find many similarities in the perceptions of managers in the nonprofit and public sectors as compared to the for‐profit sector. However, when we examine the sorting of managers into nonprofit versus public sector jobs, we find differences in work environment. Compared to those working in the public sector, managers in nonprofits report greater freedom in deciding how to carry out their job functions, more control over their work schedules, and greater opportunities for pay increases. We conclude with a discussion of the implications of these findings for the practice of nonprofit management.     

Nonprofit management practices and work processes to promote gender diversity

Nonprofit organizations have long provided an important space for women to establish roles in public life. Using establishment‐level data on for‐profit and nonprofit organizations, we show that the proportions of women in full‐time and mission‐critical positions are higher in nonprofits. In contrast, for‐profit businesses have more women in part‐time jobs and in jobs that are peripheral to the organizational purpose. We also demonstrate that the greater proportions of women in full‐time and mission‐critical positions in nonprofits are due to the use of inclusive work processes and transparent human resource management practices. Our findings provide evidence to pursue the aspects of nonprofit organizations that expand opportunities for working women.     

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.     

Co‐located Nonprofit Centers

Nonprofit centers are organized to house individual nonprofits “under one roof” to enhance their efficiency and effectiveness and to offer shared services to diminish administrative load. This post‐occupancy tenant satisfaction survey of three such US centers represents the first empirical analysis of such organizations. We find that nonprofit tenants (N = 118) initially co‐located due to the leasing price and the new physical environment (free parking and safety). Nearly all nonprofit tenants wished to remain at their nonprofit centers, largely for the same reasons that brought them there. The article then discusses strategies to achieve the high response rates attained in this study. It concludes with some implications for nonprofit centers, communities, and nonprofit staff—now and in the future, including lower occupancy costs and enhanced quality of nonprofits’ workspace.     

Employer liability for third‐party sexual harassment

While most employers understand the scope of their responsibility to prevent sexual harassment between employees, the scope of an employer's responsibility to prevent sexual harassment by third parties is often less clear. Such third parties may include customers, clients, sales representatives, vendors, investors, or anyone in the workplace who is not a member of the employer's workforce. Although an employer may be unable to easily control non‐employee actions, it is legally obligated to respond to any third‐party sexual harassment of its employees that is brought to the employer's attention. With proper safeguards and remedial action, however, an employer can keep its employees safe from third‐party sexual harassment and protect itself from liability in the process. This Q&A explains employer liability for third‐party sexual harassment, describes the ramifications of an employer's failure to properly address or prevent it, and recommends strategies to reduce an employer's legal exposure.     

Accounting for Social Value in Nonprofits and For‐Profits

The authors argue that social value can serve as a bridge between the nonprofit and for‐profit sectors. They further propose that social value is not simply an abstract concept but can be measured by applying social accounting methods. The authors argue that nonprofits are founded on a social mission but that traditional accounting approaches do not properly assess their social products. They illustrate the centrality of social value, both to nonprofits and for‐profits, in two ways: (1) a discussion of for‐profit firms that behave much like nonprofits and (2) an application of the social accounting model. The authors discuss two types of firms: (1) for‐profits whose shares are held in a trust and therefore operate much like corporations without shareholdersor like nonprofits and (2) for‐profits whose owners do not exercise the rights associated with their property. They then apply a social accounting model to nonprofit employment training programs to illustrate how the inclusion of social variables changes the assessment of an organization's value. They conclude with a discussion of a social accountability framework that embraces both nonprofits and for‐profits.     

Small,minority‐based nonprofits in the information age

Pundits of information technology stress that the Internet opens new arenas for nonprofits through the ability to share information both locally and globally. New technology also changes funders' and other evaluators' expectations regarding proposals. Although new technology makes life easier for organizations with budgets, time, and familiarity with technology to buy and use these new tools, nonprofits that lack these resources fall even further behind in their quest to support and improve their programs. Based on ethnographic research in Kenosha, Wisconsin, this article explores the role of changing technology in the ability of small nonprofits to succeed in implementing their organizational mission. Using case studies, this article compares the experience of nonprofits and church mission projects based in the African American and Latino communities in this small city to that of two mainstream organizations in gaining funding and the general perception of those agencies in the local community. The article argues that expectations about the use of technology increase the gaps between a community's haves and have‐nots. Kenosha organizations based in communities of color are particularly at risk due to already low funding and lack of staff familiar with new technologies. The article demonstrates that the key is often not access to technology or technical assistance but the time to make the best use of available technology.     

The Relationship between Provision of Membership Benefits and Fulfillment of Representational Roles in Nonprofit Advocacy Membership Organizations

This article explores the ways nonprofit advocacy membership organizations can manage their resource dependence on members and fulfill the organizations' representational roles, focusing on the provision of membership benefits. Membership organizations rely on financial or other resources from members and thus are constrained by them. For a nonprofit that aims to primarily speak for members, constraints by members may help to focus organizational attention on members' interests. Contrarily, for a nonprofit that aims to mainly represent broader constituents, members' constraints may hamper an organization's ability to advocate for broader constituents because members do not necessarily share the same policy goals with broader constituents. The provision of membership benefits can be a useful strategy for organizations to fulfill their representational roles and to satisfy and engage members, because people often join an organization to enjoy certain membership benefits. For an empirical analysis, this study collected a large‐scale data set through web and mail surveys of nonprofit advocacy organizations across the United States. The mixed‐mode surveys achieved a 57.5 percent response rate (729 responses). The survey and regression analysis results show that member‐serving nonprofits providing members with opportunities to participate in advocacy work are more likely to represent members' interests directly. Although broader constituency‐serving nonprofits tend to prioritize members' opinions, these organizations are more likely to adhere to the mandates of broader constituents when providing selective material membership benefits. However, when providing purposive membership benefits, these nonprofits are more likely to represent members' opinions.     

Corporate Volunteering: Benefits and Challenges for Nonprofits

In the frame of corporate social responsibility, corporate volunteering is almost exclusively studied from the point of view of companies, while the perspectives of nonprofit organizations are neglected. Hence, this article focuses on the perspective of managers of nonprofit organizations on volunteer partnership projects with for‐profit companies. In the center of this article lie nonprofit managers' strategy and motivation for participating in corporate volunteering, conception of corporate volunteer activities, and the often‐cited win‐win‐win aspect. Key findings suggest that a majority of the questioned nonprofits lack strategic behavior and management tools for undertaking volunteer partnership projects with companies. Nevertheless, corporate volunteering is widely perceived as an opportunity and a promising method of raising donations for nonprofit organizations. This article suggests that the key to successful future cooperation between nonprofits and profit‐oriented organizations lies in the processes of internal evaluation and subsequent strategy development.     

Rural High School Youth's Access to and Use of School‐to‐Work Programs

Rural youth face numerous barriers that may limit career exposure. School‐to‐work (STW) programs are one tool used to increase exposure and facilitate connections between school and work. Using a nationally representative data set, the authors investigated whether rurality relates to the availability of STW programs and rural youth's program use. Results indicate that most schools provide school‐based services (e.g., career plans/career majors), but few schools offer work‐based services (e.g., internships). Rural schools were more likely to offer vocational–technical prep programs and job shadowing but were less likely to offer school‐based enterprise. After controlling for program availability, the authors found that rural students were less likely to take part in job shadowing and community service. Conclusions are offered for career development research, policy, and practice.     

Children's work and children's well‐being: Implications for policy

This article argues for holistic consideration of children's work. Dominant discourse on “child labour” attends only to dangers of children's work, leading to policies that damage some children's chances for development. Far from being universally negative in children's lives, appropriate work contributes to their well‐being and development, and to transitions to adulthood. Children's work can convey benefits for sustenance and quality of life, provide learning to complement and support school, offer psycho‐social benefits, particularly in building self‐esteem, and help develop social relations and responsibility. These benefits are especially critical for marginalized children. Common policies of abolishing child labour based on age of employment rather than potential harm deny such benefits to younger children.     

Degree and Direction of Paid Employee/Volunteer Interchange in Nonprofit Organizations

This study builds on an earlier one (Handy, Mook, and Quarter 2008) that examined the degree of interchangeability between volunteers and paid employees in nonprofit organizations. In the current study, we surveyed 836 nonprofits in Canada to understand what factors determine the degree of interchange between paid employees and volunteers, bearing in mind that this interchange can go in two directions: paid employees for volunteers and volunteers for paid employees. We found the degree of interchange to be widespread and in both directions. One of the most important predictors of the likelihood of interchange was the number of full‐time employees, suggesting that interchangeability occurs less frequently in organizations with a larger number of employees than in those with fewer employees. Religious congregations and organizations with workload increases were more likely to interchange tasks among volunteers and paid staff.     

The Nonprofit Sector and State Governments: Public Policy Issues Facing Nonprofits in North Carolina and Other States

The challenges facing nonprofits in North Carolina and most states include devolution and ripple effects at the state level from federal budget cutbacks, government efforts to tax or further regulate nonprofits, scandals involving a few organizations or their leaders, and efforts to limit nonprofits' right to lobby and advocate for their causes. But the future also holds a number of opportunities for nonprofits, including the increased clout of nonprofits acting together as a sector; partnership initiatives with nonprofits by North Carolina's governor and chief executives in other states, legislative measures to increase charitable giving and reduce red tape, state-level summits following up on the president's push for increased volunteerism, and a reservoir of public trust in nonprofits. North Carolina's experience may predict the future dangers and opportunities in other states.     

Past work experience and organizational assimilation in nonprofit organizations

This study compares seven dimensions of organizational assimilation (OA)—familiarity with coworkers, familiarity with supervisors, recognition, acculturation, involvement, job competency, and role negotiation—into nonprofit, for‐profit, and governmental organizations incorporating the role of similarity of past work experience (magnitude of transition [MoT]). An online survey of 294 employee newcomers (tenures of 3 months or less) revealed differences in OA between those entering nonprofits and those entering for‐profit, and governmental organizations. Compared to newcomers entering for‐profit and governmental organizations, nonprofit newcomers reported higher levels of job competency, involvement, acculturation, and role negotiation. Interactions between organization type and MoT from past work to current roles were examined for effects on OA. When MoT was low, nonprofit newcomers were higher on acculturation and involvement than for‐profit newcomers; governmental newcomers with high MoT were significantly higher on role negotiation than for‐profit newcomers. Theoretical and practical implications for nonprofit organizational management, trainers, and nonprofit newcomers are discussed.     

The relationship between employer‐provided training and the retention of older workers: Evidence from Germany

A substantial portion of Germany's workforce will soon retire, making it difficult for businesses to meet their human capital needs; training older workers may help to manage this demographic transition. The authors therefore examine the relationships between employer‐provided training programmes, wages and retirement among older workers. They find that when establishments offer special training programmes targeted at these workers, women – especially low‐paid women – are less likely to retire, possibly because of consequent wage growth. Their results suggest that such targeted training can indeed play an important role in retaining low‐wage older women and advancing their careers.     

Variation in part‐time job quality within the nonprofit human service sector

This article extends the growing literature on the quality of part‐time employment to the domain of nonprofit human services, specifically grassroots organizations in which paid work is itself a relatively new reality. It addresses three central questions: How do part‐time and full‐time workers differ in their personal and household characteristics? How do part‐time jobs differ in access to employment benefits from their full‐time counterparts; and finally, How does benefits access vary among part‐time job titles? These lines of inquiry are examined using data from the populations of nonprofit domestic violence programs and their employees in a large midwestern metropolitan area. Analyses of worker‐level data reveal that part‐time workers in these settings disproportionately live with children, are in committed relationships, and report a strong preference for employment that facilitates work‐life balance; they are also less likely to be primary household wage earners. Analyses at the level of jobs suggest that employment benefits extended to part‐time jobs are minimal compared to their full‐time equivalents, but there are also striking variations among different part‐time titles. The results offer insights into the nature of part‐time work in these nonprofit human service settings and potential challenges for effective management.     

Unintended? The effects of adoption of the Sarbanes‐Oxley Act on nonprofit organizations

This article investigates the benefits and costs to nonprofit organizations emanating from the adoption of the Sarbanes‐Oxley Act (2002). The act was intended to stem financial malfeasance in the for‐profit sector; nevertheless the article finds that about half the surveyed nonprofits adopted provisions of the act and experienced effects in proportion to the level of adoption. About one in four of the nonprofits attributed benefits of better financial controls and reduced risk of accounting fraud to the adoption of the Sarbanes‐Oxley Act. More than one‐third of the nonprofit organizations reported increased fees for external audit, and about 15 percent cited “reallocation of resources from program to administrative expenses.” This article discusses the unintended positive and negative effects of public policy on nonprofit organizations.