Nonprofit mission statement focus and financial performance

Mission statements have been adopted nearly universally in nonprofit organizations. Their ubiquity is based on a presumption that a well‐designed mission statement is linked to better organizational performance because it provides a framework for decision making, influence over staff and volunteer motivation, and a mechanism for signaling organizational legitimacy to stakeholders. Despite collective confidence in mission statement utility, the relationship between mission statements and performance has received minimal attention. In this exploratory study we measured several attributes of mission statements in women's rights nonprofit organizations, with particular attention to the degree to which the statement focuses on organizational purpose and the relationship between focus and several measures of organization financial performance. The findings indicated that mission statements with a more focused geographic scope were associated with lower overhead ratios. In contrast, mission statements that identified more target client groups were associated with larger one‐year increases in contribution. Despite the statistical significance, the relationships were weak, calling into question common assumptions about the importance of the mission statement to a nonprofit organization.     

Executive functional experience and its relationship to the financial performance of nonprofit organizations

This study examines the relationship between a chief executive's functional business experience and multiple financial measures of Nonprofit organization performance within higher education foundations. Executive experience in specific business disciplines was found to be associated with two financial performance outcomes examined in this study. Specifically, prior functional experience of CEOs in the areas of accounting, production, and marketing were significant and positive predictors of financial performance.     

Accountability as a Managerial Tool in Non-Profit Organizations: Evidence from Italian CSVs

The long-term performance of NPOs is based on their ability to link and maximize social value as defined in their mission. This involves legitimacy obtained from stakeholders influenced by and influencing NPO activities, and their operational capacity or economic efficiency. Thus, NPOs have to utilize multiple level accountability systems which should be compatible with their multiple objectives and stakeholders’ claims. The accountability system of an NPO should focus on its operational capacity, because in order to maximize its efficiency, an NPO has to measure its resource use, cost structure, and financial structure. Legitimacy obtained from stakeholders is also integral. If an organization is considered a social contract between multiple stakeholders, it has to consider the social economic effects of its activities and it has the duty to account for them. However, since the mission of an NPO is to create and distribute social value to a certain specific group, its social value creation has the most important role and an NPO should measure the social value it has created. This article analyzes the accountability system of a specific type of Italian NPO called Centri di Servizio per il Volontariato (CSVs)—namely centers which provide services for voluntary associations. The aim of the research is to verify if the accountability system adopted by CSVs satisfies their need for multiple level information (operational, legitimacy, and social value) and accomplishes their stakeholder claims, and to determine its impact on the definition and implementation of their strategy and on their long-term performance. The research was carried out using the action research model, and the findings are based on the analysis of a sample of 64 CSVs situated throughout Italy.     

Balance with logic-measuring the performance and sustainable development efforts of an NPO in rural Ethiopia

The analysis of performance of Not-for-profit organisations (NPOs) is difficult because there are several objectives and perspectives to NPO performance and accountability, especially if considered sustainably and in long term. This suggests that performance analysis and measurement of NPOs might also involve multiple perspectives, such as in Balanced Scorecard (BSC) or in the Logical Framework (LF) models.This article is a case study of analysing the sustainable development and performance of an NPO in rural Ethiopia. We propose the Logic Balanced Scorecard (LBSC) model that combines elements of BSC and LF. This proposal was preliminarily used and tested in a five-year interventionist accounting case study among eight villages in rural Ethiopia. Advances in performance measurement may help improving the socioeconomic, agricultural and nutritional situation in the area. Further, an improved analysis of performance, sustainability and accountability of NPOs may make development projects easier to plan, follow and assess.     

Should NPOs Follow International Standards for Financial Reporting? A Multinational Study of Views

Financial reporting is an important aspect of not-for-profit organisations’ (NPOs’) accountability. Globally, numerous and varying regimes exist by which jurisdictions regulate NPO financial reporting. This article explores whether NPOs should be required or expected to follow sector-specific international financial reporting standards. We investigate stakeholder perceptions on the nature and scope of any such developed standards, interpreting our findings through the lens of moral legitimacy. Using an international online survey of stakeholders involved in NPO financial reporting, we analyse 605 responses from 179 countries. Based on our findings, we argue that diverse stakeholder groups, especially those who are involved with NPO financial reporting in developing countries, are likely to grant moral legitimacy to developed NPO international accounting standards if the consequences are to enhance NPO accounting and accountability information, subject to agreement as to whether all or only NPOs of a certain size should comply and whether any such standards should be mandatory.     

Assessment of financial decision making: an informant scale

Older adults with cognitive impairment are a population at great risk for financial exploitation. At-risk older adults often have difficulty reporting on their own financial abilities. Collecting information from trusted others is vital for professionals investigating the financial exploitation older adults. There are few reliable, valid, and standardized informant-report measures of financial capacity, and none that assess decisional abilities for an ongoing, real-world financial transaction. The present study sought to examine the psychometric properties of a new informant-report scale of financial decisional abilities in older adults. One hundred fifty participants were recruited to complete the Family and Friends and Interview regarding a known older adult’s financial decisional abilities. A factor analysis identified two subscales. The full scale had adequate sensitivity and specificity to detect an informant’s current concerns regarding financial exploitation. The Family and Friends Scale is a useful tool for collecting informant-report regarding an older adult’s ability to make financial transactions.     

Factors associated with expectation of household's future financial condition

Path analysis is used to examine the causal relationships among selected objective and subjective factors associated with a household's expectation of future financial condition. Results indicate that respondents who perceive the effect of changes in the external environment on their own household's financial condition as positive are younger, have higher net worth, perceive more internal control over their situation, and report that most of the changes in the external environment are positive. Respondents who are younger, have higher income, perceive more internal control over their situation, and believe the effect of changes in the external environment on their household's financial condition are positive are more likely to be optimistic about their financial future. It is important that educators and financial advisors recognize the significant role perception of being in control plays in determining expectations of future financial condition.Journal Paper No. J-15256 of the Iowa Agriculture and Home Economics Experiment Station, Project No. 2809. Data were collected in conjunction with the cooperative regional research project NC-182, Family Resource Utilization as a Factor in Determining Economic Well-Being of Rural Families. Cooperating states are Arizona, California, Illinois, Indiana, Iowa, Kansas, Michigan, and Minnesota.Her current research interests include family financial management and consumer bankruptcy; she received her Ph.D. from the University of Missouri.She received her Ph.D. from the University of Illinois; her current research interests include gender roles, family financial management, and economic well-being.She received her Ph.D. from the University of Illinois. Her research interests are economic well-being and quality of life.Her current research interests include the economic well-being of various family forms. She received her Ph.D. from the University of Illinois.     

Examining evidence of financial and credit exclusion in Canada from 1999 to 2005

Changes are occurring in the provision of consumer credit, including the expansion of subprime and some fringe financial services (e.g., payday lending). We link two existing literatures on credit constraint and financial exclusion to assess the impact of these developments on the financial circumstances of low and modest-income consumers. We develop a model that identifies observable measures of credit constraint and financial exclusion and relate them to consumer characteristics and life cycle behaviour. We estimate this model using the two latest Surveys of Financial Security for 1999 and 2005, which provide consistent evidence of credit constraint and financial exclusion through time. We find modest overlap among our measures of financial exclusion, which include a zero balance/no account, credit card refusal, and using a pawnshop. Probit regression is used to investigate the factors influencing the incidence of financial exclusion. The results are similar for 1999 and 2005 and indicate rising incidence of financial exclusion as income and wealth fall, although the relationship is nonlinear such that incidence rises much faster at very low levels of income and wealth. Our analysis also suggests potentially important links between financial literacy, formal education, asset building, and financial exclusion and credit constraint. When we combine the samples, we find statistically significant evidence of growth in the incidence of each indicator of financial exclusion when other factors are held constant. Policy implications may include the strengthening of banking regulations that affect low-income Canadians and the promotion of universal financial literacy.     

The factors affecting a family's plan to change its financial situation

This study investigates the factors involved in changing a family's financial situation for 485 Midwestern households. High income families and those with high home equity levels have a smaller gap between their standards and levels of consumption. High income families are more satisfied with their financial situations than low income families. Those families with a large gap between their standards and levels of consumption are more dissatisfied with their financial situations. Older heads of households have higher satisfaction with their financial situations and are less likely to plan to change them. Large families are less satisfied with their financial situations than small families and are more likely to plan to change them.Sharon M. Danes is Assistant Professor and Family Resource Management Extension Specialist, Family Social Science Department, University of Minnesota, 275F McNeal Hall, 1985 Buford Avenue, St. Paul, MN 55108. Dr. Danes received her Ph.D. from Iowa State University and her current research interests include family management and family financial management.Earl W. Morris is Associate Professor, Department of Design, Housing, and Apparel, University of Minnesota, 368B McNeal Hall, 1985 Buford Avenue, St. Paul, MN 55108. Dr. Morris received his Ph.D. from Cornell University. His current research interests include rural housing.     

Incorporating cash flow analysis with traditional analysis for evaluating casino financial stability

Abstract

The rapid growth and greater competition among casinos has resulted in a number of firms being financially impaired while others are being forced into mergers and consolidations. Many US gaming regulators have adopted regulations for monitoring the financial stability of casino properties. These regulators typically use financial statement analysis tools for measuring the financial stability of the gaming properties. This has traditionally consisted of measures derived from the income statement and balance sheet while ignoring the statement of cash flows. At this time, there is little information on how to read the statement of cash flow, let alone how to analyze this statement. While prior studies have been mixed on the informational content of cash flow information, they conclude that cash flow information does help explain many of the changes in the balance sheet and income statement and thus helps in the understanding of changes that have taken place in a corporation. This type of information should lead to a better understanding of the financial stability of gaming properties. The use of cash flow ratios along with the traditional ratios should provide additional assurances about the liquidity and solvency of gaming corporations.     

论经济危机

过去我们是从书本上认识经济危机,这次＂次贷危机＂让我们亲历了一次1929年＂大萧条＂以来最严重的经济危机。有的专家还认为这次经济金融危机超过了当年的＂大萧条＂。现在全世界都在应对经济危机,各国各有对策,孰是孰非,莫衷一是。要正确应对经济危机,必先正确认识经济危机及其产生的原因。     

Self-esteem,financial knowledge and financial behavior

Financial knowledge is an important but insufficient driver of responsible financial behavior. Having a positive evaluation of oneself may also be essential for individuals to initiate and persist with the daunting process of financial management. In this study, we distinguish subjective financial knowledge from objective financial knowledge, and we propose that self-esteem relates to financial behavior both directly as well as indirectly through subjective financial knowledge. Results based on a nationally representative dataset of U.S. adults suggest that self-esteem significantly relates to individual financial behavior after controlling for financial knowledge and other socioeconomic factors. The association between self-esteem and financial behavior could be both direct and indirect through subjective financial knowledge. These findings highlight the importance of psychological traits such as self-esteem in explaining financial behavior difference. Its implications are discussed.     

Wildcats in banking fields: the politics of financial inclusion

Rightwing theorists argue that we owe the current financial crisis to the democratization of credit, or financial inclusion: politics interfered with the market to benefit marginalized actors, only to cause instability and risk. Leftwing theorists focus instead on financialization: namely, the shift of profit-making activities from industry to finance. These views implicitly draw on Schumpeter and Marx. Much like their intellectual progenitors, they emphasize exogenous processes to explain financial change. Here I claim that the connection between financial innovation and financial inclusion is endogenous. I suggest two main typologies of financial innovators: Market Utopians (MUs) and Populist Innovators (PIs). Financial inclusion, I submit, is the byproduct of the quest for power of the latter.     

A new theory of financial regulation: Predicting,measuring and preventing financial crises

The frequency of financial crises in the last 20 years can be attributed to the lack of a comprehensive theory of financial regulation to guide policy makers. Existing theories fail to define the range of regulatory models, the causes of regulatory failure, and how to measure and prevent it. Faulty design of regulatory models, and the lack of ongoing performance monitoring incorporating early warning systems, is disrupting economic and social development. The new theory illustrates the necessity for a staged approach to liberalisation, which first assesses the capacity to conduct effective prudential supervision, before attempts are made to remove protective measures.     

Impact of inflated perceptions of financial literacy on financial decision making

We examine whether inflated perceptions of financial literacy affect financial decision making. Gaps between objective financial literacy and self-reported (perceived) financial literacy (blind spots) predict 19 financial behaviors better than age, gender, income, ethnicity, marital status, self-employment status, and general education levels. Only two predictors, perceived financial literacy and financial education, carried similar levels of predictive power on financial behaviors. Those with inflated perceptions of financial literacy are more likely to miss mortgage payments, receive a collection call, use informal debt, and have poor banking behavior. Those without blind spots make better financial decisions. The differences between those with and without blind spots are more pronounced among individuals with higher education and income.     

The financial practices and perceptions behind separate systems of household financial management

Qualitative research in the UK has revealed a diversity of financial arrangements underlying separate systems of household financial management. One factor, identified in previous work, is perceived ownership of money, with financial practices differing according to whether couples have distinct, blurred or shared ownership perceptions. The present work aims to build on and extend this research, using data from an online survey study with 190 cohabitants in the UK. The findings reveal that ownership perceptions transcend separate money management categories, and can be a significant predictor of the type of contribution cohabitants make towards joint household expenses.     

Conceptual model and map of financial exploitation of older adults

This article describes the processes and outcomes of three-dimensional concept mapping to conceptualize financial exploitation of older adults. Statements were generated from a literature review and by local and national panels consisting of 16 experts in the field of financial exploitation. These statements were sorted and rated using Concept Systems software, which grouped the statements into clusters and depicted them as a map. Statements were grouped into six clusters, and ranked by the experts as follows in descending severity: (a) theft and scams, (b) financial victimization, (c) financial entitlement, (d) coercion, (e) signs of possible financial exploitation, and (f) money management difficulties. The hierarchical model can be used to identify elder financial exploitation and differentiate it from related but distinct areas of victimization. The severity hierarchy may be used to develop measures that will enable more precise screening for triage of clients into appropriate interventions.     

Research in family financial counseling

Domains of family financial counseling research are proposed in order to establish criteria for assessing research needs in this relatively new field. Identification of the research domains implies progress for an emerging profession. A survey of the family financial counseling research to date is reported. Results of research in several domains are shown to demonstrate how results from empirical studies can contribute to the theory and practice of family financial counseling.Research conducted under the auspices of Agricultural Experiment Station Research Project 01803, Family Economic Problems and Resource Management.Dr. Williams is an Associate Professor in the Department of Consumer Sciences and Retailing, Purdue University, West Lafayette, Indiana 47907. Her Ph.D. was received from Purdue. Current research interests include income adequacy, economic security, financial problems, and financial counseling.     

Prevention validation and accounting platform: a framework for establishing accountability and performance measures of substance abuse prevention programs

The field of substance abuse prevention has neither an overarching conceptual framework nor a set of shared terminologies for establishing the accountability and performance outcome measures of substance abuse prevention services rendered. Hence, there is a wide gap between what we currently have as data on one hand and information that are required to meet the performance goals and accountability measures set by the Government Performance and Results Act of 1993 on the other. The task before us is: How can we establish the accountability and performance measures of substance abuse prevention programs and transform the field of prevention into prevention science? The intent of this volume is to serve that purpose and accelerate the processes of this transformation by identifying the requisite components of the transformation (i.e., theory, methodology, convention on terms, and data) and by introducing an open forum called, Prevention Validation and Accounting (PREVA) Platform. The entire PREVA Platform (for short, the Platform) is designed as an analytic framework, which is formulated by a collectivity of common concepts, terminologies, accounting units, protocols for counting the units, data elements, and operationalizations of various constructs, and other summary measures intended to bring about an efficient and effective measurement of process input, program capacity, process output, performance outcome, and societal impact of substance abuse prevention programs. The measurement units and summary data elements are designed to be measured across time and across jurisdictions, i.e., from local to regional to state to national levels. In the Platform, the process input is captured by two dimensions of time and capital. Time is conceptualized in terms of service delivery time and time spent for research and development. Capital is measured by the monies expended for the delivery of program activities during a fiscal or reporting period. Program capacity is captured by fourteen measurement units, tapping into the dimensions of staff resources and community assets. Staff resources are, in turn, operationalized in terms of staff size, staff certification status, staff turnover rate, and the accreditation status of a provider agency. Community assets are operationalized by the number of community centers accessible to the funded agency, number of formalized teams or antidrug coalitions active in the catchment area, and other social/human services providers with whom the prevention agency has formalized networks. The totality of process output from all sources of program activities is reduced to eighteen classes of measures. These are operationalized by thirty-three summary measures. Some of these include: total count of events facilitated; total number of clients served; average number of clients served per event; clients served by single and multiple program sessions; classification of target population in terms of the severity of risk as defined by the Institute of Medicine; age groups and race/ethnicity of clients served; number of program participants retained by recurring programs; number of clients who have completed the program; penetration rates to the target population; client attrition rates; average referral rates per provider per time interval; referral success rates; and so on. All process output measures specified in the Platform are derived from two broad classes of events classified as either products or services. The collectivity of these measures is expected to present a cost-effective, parsimonious, yet comprehensive picture of the entire spectrum of the process output, i.e., "what came out of the program as program activities". For the measurement of performance outcomes, two types of data are incorporated into the Platform: outcome data from individuals and the behavior (or performance) of social indicators from aggregated data bases. Individual data are used to evaluate the outcome of substance abuse programs     

The role of perception in the intention to change the family financial situation

The study investigates factors associated with the individual intentions to change the family financial situation of 337 farm respondents. The hypotheses are that intentions to change are influenced by (a) resource flexibility or constraints existing at the time of the decision situation, including off-farm employment, education, age, and household size, and (b) perceptual factors of perceived income adequacy, locus of control, degree of discrepancy between standard and level of the family financial situation, and dissatisfaction or satisfaction with the discrepancy. Older respondents and those experiencing more external control are less likely to intend to change. Younger respondents and those who perceive their incomes as more adequate are more likely to perceive that they have control over their situation. The lower the perceived income adequacy, the greater the discrepancy between standard and level of the family financial situation and the lower the satisfaction with the discrepancy. Significant indirect effects were consistent with theoretical expectations.Research was supported by the Minnesota Agricultural Experiment Station Projects 52-055, 52-054, and 52-058 and the Minnesota Extension Service. The authors wish to thank Jean W. Bauer, Ph.D., for research collaboration and Susan Keskinen and Cathy Schultz for research assistance.Her research interests include social, economic, and technical decision processes, discrepancies between standards and levels, and the interrelationship of work and family roles, particularly for farm women. Her Ph.D. is from Iowa State University.Her research interests in family resource management theory include social decision making processes and social decision rules, family life quality, and the economic consequences of divorce. Her Ph.D. is from Michigan State University.