Nonprofit sustainability during times of uncertainty

Nonprofit organizations in the United States depend on a diverse set of funding streams to sustain their operations. This study examines the ability of nonprofits to leverage funds from the private sector during the current economic downturn within four areas receiving federal funding for community and economic development. Both survey research and individual interviews were used to examine how nonprofits within these areas are incorporating their board members and community leaders to continue services during a time of resource scarcity.     

The Discreet Charm of the Nonprofit Form: Service Professionals and Nonprofit Organizations (Poland 1989-1993)

This paper examines the role of social proximity (nonprofit) organizations in the process of professional innovation that involved a transfer of human service technologies from Western Europe and the United States to Poland during the 1989 political–economic reform. To explain that role, the paper introduces a theoretical model that posits the existence of elective affinity between the social proximity form and occupational interests of service providers. As the existing system of professions is no longer sufficient to legitimate expert services and curb competition among different types of providers, the social proximity form bestows social legitimacy on novel or controversial types of services, and is thus instrumental in marketing those services. The proposed model is supported by quantitative data and in-depth interviews. Theoretical implications are discussed.     

Characteristics of Innovative Nonprofit Organizations in Argentina

The purpose of this study was to discover the characteristics of innovative organizations as perceived by employees of Argentine nonprofit organizations. The free listing technique, adapted from the field of cognitive anthropology, was used to achieve this task. Fifteen representatives of a variety of Argentinean nonprofit organizations participated in the study. Among the highest rated characteristics were: searching for new ways, solutions, and unconventional forms of work; adapting to new times; suggesting new forms for solving problems; and reflecting over organizational activities and actions. Rated as least characteristic were: encouraging role changes within teams; focusing on organizational mission; not being afraid of failure; and generosity (sharing information with other organizations).     

Exploring Potential for Information Technology Innovation in Nonprofit Organizations

This article investigated user perceptions of innovative information technology. A qualitative analysis of information technology innovation award applications submitted by a variety of nonprofits was conducted to explore two research questions: (a) in what areas of organizational functioning can information technology innovations be implemented, and (b) what are the expected benefits associated with the implementation of those information technology innovations? The results showed that technological innovations can occur in administrative, service, and marketing areas; and that the applicants believed that those innovations have a potential to provide numerous positive benefits. Those benefits were associated with clients and programs, internal and external functioning, fundraising and financial aspects, and public image and relationships with stakeholders. Human service organizations proposed the highest numbers of IT innovations in the administrative and technological areas.     

Structural Isomorphism in Australian Nonprofit Organizations

This paper assesses the extent of structural similarity or isomorphism among nonprofit organizations in Australia. Based on neo-institutional theory, the paper explains such isomorphism in terms of these organizations subordination and dependency, the uncertainties they face, and the networks of experts of which they are a part. The analysis uses the nonprofit component of a 2001–2002 random sample of Australian employment organizations. It finds surprisingly little isomorphism in this subsample and few differences in isomorphism according to the level of the factors thought to produce similarity. The discussion of the findings focuses on the suitability of the nonprofit sector as the appropriate organizational field within which isomorphism involving these organizations is likely to be produced. Industries, which include all organizations that produce the same product or service, be they nonprofit, for-profit, or government, may be more appropriate interactional fields for the development of isomorphism.     

Advocacy by Nonprofit Human Service Agencies

Abstract

This article reports and analyzes findings of a mixed-methods study which examined correlations between select organizational factorsbudget size, staff size, age, local government funding, and leadership-and the advocacy behavior of human service agencies in Washington, DC. Surveys were sent to 100 agency executive directors, and 43 were returned. Follow-up interviews with staff from the five highest scoring and five lowest scoring agencies are reported. Findings show that budget size, staff size, leadership, and local government funding are positively correlated to agency advocacy behavior. Barriers and enhancements to agency advocacy behavior are also discussed.     

Political Influence and the Performance of Nonprofit Spanish Banks

This article presents empirical evidence about factors that influence the solvency of Spanish savings banks. It also studies whether the presence of politicians in their governance has led to lower solvency ratios and, consequently, to the current economic situation in the Spanish banking sector. We use multivariate regressions, taking the solvency ratio as the dependent variable; and efficiency, the coverage ratio, political influence, CEOs’ political influence, size, growth, and age as independent variables. Our results confirm that banking entities controlled by politicians resulted in poor performance, and political influence on the boards of savings banks led them to insolvency. The findings show that the non‐ownership structure of savings banks, the lack of best practice corporate governance mechanisms, and political presence have weakened them.     

Sustainability of Nonprofit Human Service Organizations in a Neighborhood Context

Nonprofit human service organizations (NHSOs) carry both practical and symbolic implications for serving local needs. Whether neighborhood characteristics influence the existence of NHSOs is a critical inquiry, albeit with mixed results. This study examines the relationship between neighborhood characteristics and organizational sustainability based on the data of the capital district of New York State. Spatial analysis showed that the largest concentration of NHSOs remains in the inner‐city neighborhoods. Regression analysis identified small revenues of organizations and density of African American residents as significant factors that are negatively associated with the longevity of NHSOs, controlling for neighborhood income level. These findings imply that small‐budget organizations in African American neighborhoods may experience a quick turnover, which prompts a deeper understanding of how NHSOs attempt to sustain in such neighborhoods.     

Nonprofit entrepreneurial orientation: A systematic literature review and conceptual framework

The purpose of this study is to propose a set of factors that characterize the manifestation of entrepreneurial orientation (EO) in nonprofit organizations (NPOs), and we performed a systematic review of the literature. Initially, 17 studies were identified in different databases, and after a full reading of the documents that met the objective of this study, we selected and qualitatively analyzed 14 theoretical and empirical studies about EO in the nonprofit context. The studies analyzed allowed us to understand the characteristics of organizational entrepreneurship in NPOs, through the dimensions of innovativeness, proactivity, risk‐taking, autonomy, and competitive aggressiveness, in addition to the reciprocity dimension, which emerged from the literature. By adding reciprocity as the sixth dimension of the EO construct, it was possible to group a set factors related to each dimension which, after being refined, supported the proposition of a conceptual framework for an empirical analysis of entrepreneurial behavior in different contexts of NPOs. This study contributes to the systematization of factors that configure the manifestation of EO in the nonprofit sector, by proposing a conceptual framework entailing six dimensions of EO and propositions for future studies.     

Globalization and the Status of Current Research on the Indian Nonprofit Sector

An overview of recent trends in research on the Indian nonprofit sector is presented. The material is not exhaustive of all research that has been conducted, but instead discusses effects of globalization on the literature. As used here, globalization implies the worldwide rise of economic liberalism, universal trust in political democracy, the advent of cultural universalism, relative erosion of the power of nation-states, and global embracing of capitalism and commodity culture. The following distinct effects of globalization are discussed: diverse policy debates on nongovernmental organization (NGO) roles in development, challenges to the credibility of India's most popular and debated theory of nonprofits, the emergence of a large volume of literature on environmental and women's movements and organizations, and the shifting of attention to the study of NGOs. A deliberate effort is made to identify the backgrounds of some of the authors discussed in the article to direct attention to differences in content of the writings of NGO officials, activists, scholars, policy analysts, development consultants, Westerners, and Indians.     

Resource Dependence Patterns and Organizational Behavior/Structure in Korean Nonprofit Organizations

This article examines the relationships among the three dimensions of resource dependence patterns (RDPs) and organizational formalization and goals in nonprofit organizations (NPOs). These three RDPs (that is, the appearance of the financial resource inflow) are resource dependency, resource diversity, and resource competitiveness. The empirical findings suggest that high dependency on government funding (high resource dependency) is positively associated with organizational formalization, although resource diversity does not have any explanatory power on organizational behavior and structure, and that a very competitive environment for resource acquisition significantly affects goal setting in NPOs. In particular, resource competitiveness well explains goal clarity and goal change in NPOs. NPOs with high resource competitiveness present clearer organizational goals or missions and are likely to experience frequent goal change.     

Evaluation and Evaluative Rigor in the Nonprofit Sector

Nonprofit organizations are under more pressure than ever to provide “rigorous” evidence of program impact. However, as expectations for rigorous evidence rise, many nonprofits struggle with challenges that inhibit evaluation. Recognizing these trends and tensions, this study identifies catalysts and obstacles to evaluation activity and the correlates of evaluative rigor among US nonprofits based on a national survey of registered public charities (n = 311). Results reveal that the most important catalysts to evaluation include the desire to improve program effectiveness and legitimacy, while the most important obstacles include insufficient time and money. Moreover, regression analysis finds that evaluation appears to be most rigorous when (1) evaluation is a priority, (2) a supportive organizational culture exists, (3) management requires evaluation, (4) evaluation is not primarily motivated by personal interest, and (5) evaluation is likely to reveal success. Overall, intrinsically motivated evaluation appears to be more rigorous than externally mandated evaluation, suggesting that stakeholders should work to help capacitate receptive nonprofits to improve evaluative rigor instead of imposing external requirements.     

Running on Empty: The Operating Reserves of U.S. Nonprofit Organizations

Operating reserves allow nonprofit organizations to smooth out imbalances between revenues and expenses, helping to maintain program output in the presence of fiscal shocks. We know surprisingly little about why nonprofits might save operating reserves and what factors explain variation between organizations' savings behavior. Findings suggest that operating reserves are reduced in the presence of concentrated public funds, access to debt, fixed assets, and endowment. However, size is not an important predictor, indicating that the lack of reserves is not limited to small nonprofit organizations but is instead a sectorwide issue. Significant numbers of nonprofits maintain no operating reserves at all. One potential explanation is that organizations discount the benefits of reserves because they are evaluated on spending, focusing instead on the “benefits of costs.” This preference for spending over reserving may also help explain the general lack of liquidity in the sector beyond operating reserves alone.     

Toward the Importance of Nonprofit Brand Equity

Various brand evaluation approaches assess the value and equity of for‐profit brands; accordant approaches for nonprofit brands, however, have been limited, and there is disagreement on what makes up a strong brand in the nonprofit sector. In response, this article provides insights into the conceptualization and operationalization of stakeholder‐based nonprofit brand equity and derives an initial measurement index. We conceptualize nonprofit brand equity as having three dimensions—nonprofit brand awareness, nonprofit brand trust, and nonprofit brand commitment—thereby empirically investigating trust in nonprofit brand equity building for the first time. The methodological procedure for building the index is based on partial least squares path modeling, and we draw on a sample of forty brands (N = 3,617 brand evaluations) identified as some of the best‐known nonprofit brands in Germany. Applying the index yields some of the strongest German nonprofit brands; for example, German Red Cross has by far the highest value of brand equity, followed by Aktion Mensch and UNICEF. The nonprofit brand equity index provides the basis for nonprofit managers to compare their brands’ performance over time and develop accordant branding strategies; it can be also used by organizations from other countries.     

Wage Inequality and Performance in Nonprofit and For‐Profit Organizations

This article examines the effects of several forms of wage inequality on service quality and employee effort. We suggest that two popular theories, tournament and fair wage/equity, are not necessarily competing. Each theory accurately describes aspects of employee behavior, but because of sectoral differences in organizational objectives and employee attitudes, tournament theory's predictions are relatively stronger in the for‐profit sector, while fair wage/equity theory's predictions are relatively stronger in the nonprofit sector. Using an employer–employee matched data set of nursing homes linked to a federal regulatory database and a resident survey, we found that ownership moderates the relationship between wage inequality and service quality. Although wage inequality positively affects service quality in the for‐profit sector, the reverse is true among nonprofit organizations. We also found that overall wage inequality in the workplace has a more pronounced influence on employee discretionary effort than does the employee's place in the distribution of wages.     

The Role of Stakeholders in the Efficiency of Nonprofit Sports Clubs

This article analyzes the efficiency levels of nonprofit sports clubs through the data envelopment analysis methodology and specifically evaluates how efficient and inefficient clubs perceive the distinct contribution of stakeholders in attaining their respective levels of output efficiency. The results distinguish the varying levels of efficiency between such clubs and highlight significant differences in the roles of the local government and of associations and federations in attaining these efficiency levels. The study further suggests best practices that can be adopted by officials at inefficient clubs toward reducing or eliminating their shortfalls in efficiency.     

Three-dimensional virtual reality: Applications to the 12 grand challenges of social work

Abstract

The American Academy of Social Work and Social Welfare (AASWSW) identified 12 Grand Challenges of Social Work to unify the profession with focused research, practice and policy applications for the most pressing social issues. Virtual Reality (VR), specifically three-dimensional immersive computer-generated environments, has a history of research and applications to address social and behavioral problems. VR is becoming more readily available, as the technology is becoming more common in mainstream platforms such as mobile technology. While social work interventions are often tailored for vulnerable populations that may not have access to VR computing, it appears that virtual reality is gaining accessibility with these advances. Within the framework of the 12 Grand Challenges of Social Work, researchers from three social work virtual reality laboratories in the United States, Texas State University, the University of Houston, and the University of Alabama, review applications previously tested and currently in development to focus future research and intervention in social work practice.     

Beyond the Crossroads: Policy Issues for the Philippine Nonprofit Sector

The Philippine nonprofit sector, including nongovernmental organizations, have enjoyed an enabling and facilitative state environment since the People Power Revolution of 1986. It currently faces a legitimacy challenge in terms of its ability to represent the people, to be accountable to them, and to show its autonomy and difference from the state. It also confronts the challenge of how it can deliver services more effectively as it expands and professionalizes. Raising resources through government, philanthropy, and income generation also continue to be major challenges.     

Contextual Factors and Negotiating Spaces: Exploring the Emergence of Nonprofit and Hybrid Voluntary Organizations

The emergence of nonprofit organizations has largely been explained by the prevalent “three failures” theory. However, evidence suggests that such theories fail to capture a variety of contextual nuances that may influence nonprofit formation. In particular, these theories have remained relatively silent about the emergence of hybrid voluntary organizations. This article posits the notion that some nonprofit organizations (for example, hybrid voluntary organizations) emerge through cross‐sector negotiations, amid a number of social, policy, and political contextual complexities. We contend that any theory purporting to explain the emergence of nonprofit organizations should not neglect to account for the role contextual factors play in defining their emergence and their subsequent character and function.