Patterns of governance structures in trade associations and unions

Most research on the governance of nonprofit organizations concentrates on welfare‐oriented organizations and disregards other types of nonprofits. This article examines the governance structures of trade associations and unions as a special type of nonprofit organization. Analysis is based on a qualitative case study survey of thirty Swiss trade associations. The results distinguish four categories of governance: satellite governance, delegate governance, executive governance, and inner‐circle governance.     

Board development practices and competent board members: Implications for performance

This study explores underlying assumptions about board development practices in nonprofit governance. Specifically, a model was developed to determine if using recommended recruitment, board member orientation, and evaluation practices resulted in more competent board members and if the presence of these board members led to better board performance. The sample consisted of 1,051 survey responses from CEOs and board chairs representing 713 credit unions. As member‐benefit nonprofit organizations, credit unions rely almost exclusively on voluntary board members in an oversight capacity. Results support the contention that board development practices lead to more capable board members, and the presence of these board members tends to explain board performance. The study advances the understanding of nonprofit board development practices by further defining the concept and proposing an empirically tested assessment strategy. Furthermore, the findings support using specific recruitment practices that should strengthen nonprofit boards.     

Tax-funded unionism III: Front organizations

This article shows that unions are deeply involved in nonprofit organizations which ostensibly pursue such goals as helping the elderly and protecting consumers, but a major goal of these organizations is to obtain taxpayer funds for union organizing and other activities. The senior citizens’ political movement, for example, is controlled by union officials who use the movement to further union objectives. The authors gratefully acknowledge research support provided by the John M. Olin Foundation, the J.M. Foundation, the Sarah Scaife Foundation, and the Earhart Foundation.     

Unionization and the cost of producing hospital services

Since the inclusion of nonprofit hospitals under the provisions of the NLRA in 1974, the extent of unionization among hospital workers has increased sharply. The implications of this trend for hospital costs are examined here by analyzing data from 617 short-term hospitals in the Northeast. It is estimated that unionization on average increases production costs by 5 to 9 percent, with the bulk of this increase resulting from factors other than wage increases. Cost impacts are also found to be greater for national unions and where cost-based payment is more prevalent, and smaller for RN’s and service employees. This research was supported by Grant HS 03016 from the National Center for Health Services Research.     

What Accounts for the Variations in Nonprofit Growth? A Cross-National Panel Study

Previous studies of nonprofit growth have lamented the lack of cross-national longitudinal data measuring the size of the nonprofit sector across countries, which has made it difficult to assess the current state of knowledge about the nonprofit sector beyond national boundaries. Recent progress in measuring nonprofit growth using panel studies or cross-national data has compensated for the limitations of the existing research, but even the recent data are either country specific or cross sectional in nature. This study takes on the challenge of supplementing the current research by measuring nonprofit growth using internationally comparable longitudinal data. Specifically, this study focuses on whether certain key indicators of the overall state of the economy can be used to predict and explain the size of nonprofit sectors cross-nationally. The overall state of the economy has considerable relevance for nonprofit growth, as it influences the levels of government funding and private philanthropy that benefit the nonprofit sector. The results indicate that the existing theories about the nonprofit sector account for variations in nonprofit growth but are limited in their explanations of the underlying dynamics of such variations beyond national boundaries. Social origins theory is a useful addition that helps to explain cross-national variations in nonprofit growth. Importantly, the interplay among the government, private philanthropy, and the nonprofit sector is dynamic, and its effect on economic indicators varies across nonprofit regime types when sociodemographic variables are controlled.     

A Review of Models for Measuring Organizational Effectiveness Among For‐Profit and Nonprofit Organizations

Induced by unprecedented growth, invasion of for‐profit organizations in the nonprofit domain, and high‐profile cases of mismanagement in the nonprofit sector, a recent surge in the literature suggests ample opportunities for research to compare the organizational effectiveness of for‐profit and nonprofit organizations. This article presents a literature review of nonprofit organizational effectiveness from which four models of organizational effectiveness are selected. These models are discussed and analyzed because they apply to both for‐profit and nonprofit organizations.     

Building and valuing global brands in the nonprofit sector

Global nonprofit brands are the world's new “super brands” (Wootliff and Deri, 2001). Nonprofit organizations command unprecedented levels of trust, and nonprofit brand valuations are on par with major international corporations. Leaders and managers of nonprofits face new challenges in the stewardship of their brands. Based on current thinking in nonprofit management and detailed interviews with close to one hundred executives of ten international nonprofit organizations, this article draws strategic lessons on brand building and brand valuation activities of international nonprofits. The multiple roles and stakeholders that global nonprofit brands must address make nonprofit brand building complex and challenging. In particular, differences between advocacy and relief organizations must be explained. Despite the complexity, international nonprofit organizations may have an advantage over for‐profits in leveraging public trust and brand communication. Advocacy organizations in particular successfully link brand and cause to good effect. The valuation of nonprofit brands is a new strategic challenge with significant appeal, but also significant concerns for international nonprofits. In addition to providing nonprofit leaders and managers with a better understanding of brandbuilding activities, imperatives, and best practices in the field, this article outlines the opportunities and threats associated with the valuation of nonprofit brands.     

Embedded Systems: The Case of HIV/AIDS Nonprofit Organizations in New York City

In this paper the notion of an embedded system is developed as an analytic model to examine how state–nonprofit relations develop and become differentiated, using the case of HIV/AIDS nonprofit organizations. Drawing on extensive fieldwork among three prominent HIV/AIDS nonprofit organizations in New York City, this paper shows how the kinds of relationships these nonprofit organizations are likely to form with state agencies are based on their embeddedness in the state–nonprofit system of relations. Three forms of embeddedness are distinguished according to the type and regularity of state–nonprofit contact—direct, outsider, and mediating. Importantly, it is shown how the configuration of relations within which an organization is embedded determines many of the organization's constraints and opportunities.     

Doing Better While Doing Good: Motivational Aspects of Pay-for-Performance Effectiveness in Nonprofit Organizations

Management practices in the nonprofit sector have been changing over the last decade. Many nonprofit organizations are now mimicking the management techniques of for-profit organizations. Referring to prevailing economic, psychological, and management theories, this paper deals with pay-for-performance plans and specifies reasons for their introduction into nonprofit organizations. The determinants of pay-for-performance effectiveness are analyzed with special emphasis on the motivational determinants. The results of the analysis are incorporated into a model of pay-for-performance effectiveness. Referring to theoretical reasoning as well as empirical studies, this paper analyzes how the motivational determinants of pay-for-performance effectiveness are coined in different types of nonprofit organizations. The paper ends with a discussion in which the author presents an alternative explanation for the introduction of pay-for-performance plans into nonprofit organizations and some suggestions for future research.     

The Impact of Board Diversity and Expertise on Nonprofit Performance

This study examined the impact of board of director characteristics on nonprofit performance. Using data collected through a survey of nonprofit colleges and universities, the author provides evidence that specific board member characteristics are vital in shaping the financial and nonfinancial success of nonprofit institutions of higher education. Results indicate that both board member diversity and expertise are associated with better‐performing organizations. This work makes important initial forays into the relationships between board of director qualities and nonprofit performance. Although limited by the relatively small sample of colleges and universities, this study is unique in its ability to analyze nonprofit boards and both financial and nonfinancial performance measures.     

What Influences the Location of Nonprofit Organizations? A Spatial Analysis in Brazil

What are the local characteristics influencing where new nonprofits will be established? How important are community needs, available resources, or the existence of similar organizations for nonprofits’ location? This paper analyzes how the characteristics of 5562 Brazilian municipalities in the year 2000 help explain the location of nonprofits formed between 2001 and 2010. Based on geographically weighted regressions, results indicate that neither access to resources nor poor socioeconomic indicators are powerful influences on nonprofit location in Brazilian municipalities. The main predictor of nonprofit entry is a high pre-existing density of nonprofits in that area. These findings, however, vary across regions and nonprofit fields of activity. By mapping the effect of key explanatory variables, this paper helps understand nonprofit location. The methodology and findings on nonprofit location presented here are novel and may contribute to research in other countries.     

Organizational Identity in Nonprofit Organizations: Strategic and Structural Implications

Organizational identity is what is central, distinctive, and enduring about an organization. This article argues that clarity and consensus about organizational identity are essential elements in setting successful long‐term strategy and making structural choices in a nonprofit organization. Four classes of nonprofit organization are examined here: grantmaking foundations, federated fundraising organizations, nonprofit academic centers, and social enterprises. In each case, alternative identities are described and the implications of each identity for organizational strategy and structure are analyzed. The article suggests that examination of identity should become an integral part of organizational development for nonprofit organizations and a subject for continued research.     

Fraud survival in nonprofit organizations: Empirical evidence

This study examines the survival of nonprofit organizations after the discovery of a fraud. Literature on nonprofit fraud claims that fraud has a destructive impact on nonprofit organizations. This study is the first to provide empirical evidence of the impact of fraud on a nonprofit organization's survival, and to analyze the significance of underlying organizational and fraud factors. An analysis of 115 nonprofit organizations experiencing a fraud shows that over one fourth of these organizations did not survive at least 3 years beyond the publication of the fraud, a rate considerably higher than the typical nonprofit failure rate. This article investigates the characteristics of surviving organizations and finds that older and larger organizations are more likely to survive, indicating the liabilities of newness and smallness hold in fraud survival situations. In cases where an executive‐level perpetrator committed the fraud, or where the organization victimized the public, the organization was less likely to survive. These findings suggest nonprofit organizations, particularly those that are new or small, could benefit by implementing governance policies and procedures that are consistent with those employed by more established organizations.     

The governance of nonprofit organizations: Law and public policy

Who should have the right to set the objectives of nonprofit organizations, hire their managers, set compensation standards, and in general control these organizations? Current law and public policy do not provide answers to these questions. Often, nonprofit organizations are controlled by managers and members of the boards of directors or trustees (many of whom are appointed by management). The goals of these individuals may not best serve the interests of those who support the operation of nonprofit organizations. This article proposes a legal and policy framework for empowering consumers, donors, and sponsors—those who have an economic demand for the nonprofit form of organization. The framework establishes a formal status of membership, accords standing in the court of law to members, enhances direct information dissemination by nonprofit organizations, and empowers state-sponsored agencies to support and oversee nonprofit organizations.     

THE NONPROFIT FIRM: A POTENTIAL SOLUTION TO INHERENT MARKET FAILURES

This article analyzes the differences in products offered by nonprofit and for-profit firms in a monopolistically competitive industry where goods are differentiated both by product attributes and by the degree to which benefits are public. Because nonprofit firms receive donations, they provide a Pareto improvement of the equilibrium product set: nonprofit firms will be less biased against goods with a high social good component than will their for-profit counterparts, hi addition, the optimal donations function which equates the nonprofit equilibrium product set to the set which maximizes societal welfare is derived.     

Irish Credit Unions: Exploring the Gender Mix

Credit unions are voluntary cooperative financial institutions. At present there are 621 credit unions in Ireland serving two million members. Credit unions espouse the principle of gender inclusiveness, which is viewed as a fundamental cooperative concept. Based on a survey of 500 Irish credit unions, this study explores the role of women in credit unions. Judged against participation rates for women in the labor market and in specific organizations such as trade unions, the study suggests that gender balance in credit unions is superior to that elsewhere in Irish society. There is, however, some evidence of gender imbalance in the composition of credit union boards with this being most visible for key decision-making positions such as Chair and Vice-Chair. It also emerges that gender imbalance becomes more pronounced for larger credit unions supporting the contention that women are found in greater numbers on small and less well-connected not-for-profit boards.     

Labor Union Political Strategy in an Era of Decline and Revitalization

U.S. labor unions faced sharp membership losses over the last few decades, and some responded by ushering in a new, revitalized model of organizing. Yet we know little about how these forces may be shaping the political activities of the labor movement. Has crisis prompted unions to take aim at public policies inhibiting union vitality, or have unions turned outward to embrace broader social causes? This paper uses an original dataset of union appearances in congressional hearings to analyze unions’ legislative advocacy activities. Findings suggest substantial differences between those unions that are likely to appear in hearings on core labor‐related topics and those that appear in hearings on broad social issues: AFL‐CIO unions are more likely to participate in hearings on core labor issues, while unions commonly cited as “revitalized” and public sector unions are more likely to appear in hearings on broad social issues.     

“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.     

Understanding nonprofit missions as dynamic and interpretative conceptions

Missions are central to all nonprofit organizations, and establish their purposes. However, formal mission statements can fail to provide a true picture of a nonprofit’s mission. This article draws on prior scholarship on missions, including the role of interpretation and change, to propose two new concepts: personal and dominant mission conceptions that introduce a dynamic, socially‐constructed understanding of nonprofit mission. Personal mission conceptions are the interpretations that individuals within a nonprofit hold of the mission, while the dominant mission conception is the collective interpretation guiding a nonprofit during a specific time. Examples from two specific nonprofits are provided to demonstrate the conceptions, along with some guidance for how mission conceptions can inform future research and practice.     

The growth of the nonprofit sector in the 1980s: Facts and interpretation

The nonprofit sector was the growth sector of the 1980s. This is the conclusion reached from detailed examination of the growth trends of major industry groups in New York State in the years 1981 through 1987. The analysis in this article suggests that the growth of the nonprofit sector was due primarily to the strong orientation of the economy toward services, where the nonprofit sector has traditionally had an important presence. Within service industries as a whole, the nonprofit and for-profit sectors grew at comparable rates; however, nonprofit growth was concentrated in semipublic services and in services where information is often difficult for consumers to acquire and understand, while the for-profit sector grew in simpler and more privately oriented services. The analysis shows that the nonprofit sector filled much of the gap left by reduced or stagnating government services. However, the growth of the nonprofit sector may be difficult to sustain in the future if sufficient entrepreneurial talent and other resources are not forthcoming.