The propensity of governing boards to plan

This article examines the relationship between board characteristics and formal organizational planning in forty-four nonprofit organizations. The study found that ongoing and beginning planners were more likely than those with no planning experience—or those that had abandoned planning after an initial experience with the process—to have well-understood missions, boards that concentrated on higher-level policy issues, and boards that had clear structures for decision making. The data suggest that a coalition consisting of top management and board members needs to exist if a move toward the formalization of organizational structures and processes is to be sustained.     

Strengthening Board Performance

Many nonprofit boards have undertaken board development activities, yet there has been little empirical evidence of the impact on board performance. This article reports findings from organizations: ten participated in developmental interventions, and fourteen received no interventions but served as matched comparisons. The experimental group showed significant improvements in board performance, and the comparison group did not. Lessons from the study include a number of practical steps boards can take to reorganize governance procedures and structures to enhance board effectiveness.     

The Contextual Impact of Nonprofit Board Composition and Structure on Organizational Performance: Agency and Resource Dependence Perspectives

We study the relation between stability of the nonprofit organization’s environment and its board structure and the impact of this relation on organizational performance from the perspectives of both Agency Theory and Resource Dependence (Boundary Spanning) Theory. The impact of board characteristics on organizational performance is contextual. Specifically, we predict and show for a sample of U.S. nonprofits that board mechanisms related to monitoring are more likely to be effective for stable organizations, whereas board mechanisms related to boundary spanning are more effective for less stable organizations. We find that the two theories are complementary and address different aspects of nonprofit performance, but the results are statistically stronger and more often consistent with resource dependence than with agency theory. Overall, this study supports Miller-Millesen’s (Nonprofit and Voluntary Sector Quarterly, 32: 521–547 2003) contention that, because the nonprofit environment is often more complex and heterogeneous than the for-profit world, no one theory describes all tasks of nonprofit boards.     

Nonprofit Board Balance and Perceived Performance

Based on prior literature, this article offers a reconciliation of the core roles of nonprofit boards and aligns these role‐sets with organizational theories. A survey instrument was developed and validated to measure each of four role‐sets (monitoring, supporting, partnering, and representing) to assess whether emphasis on specific roles affects board members’ perception of performance. Our study of nonprofit boards in a midsized midwestern city found that balance across the role‐sets was associated with effective organizational performance. Furthermore, when board members describe any of the four role‐sets as deficient, they perceive the organization as less effective. The results of the study provide practitioners with a validated survey tool that provides nonprofit boards with a method to identify which roles their board emphasizes.     

Board practices and board effectiveness in local nonprofit organizations

This study of sixty-four locally governed nonprofit charitable organizations used a social constructionist perspective to investigate the relationship between the extent to which nonprofit boards use prescribed board practices and stakeholder judgments of the effectiveness of those boards. A social constructionist perspective implies that different stakeholders use and evaluate different kinds of information in making judgments about board effectiveness. The results suggest that there is wide variation in the use of the prescribed board practices, that judgments of board effectiveness often differ substantially, and that chief executives' judgments of the effectiveness of their boards is moderately related to the extent of use of recommended board practices.     

Power in and around nonprofit boards: A neglected dimension of governance

In this article we propose five patterns of board governance based on the distribution of power in and around boards of nonprofit organizations. The typology proposed grew out of our findings in in-depth case studies in which the dispersion of power became the critical variable for making sense of the patterns of governance observed. These governance patterns were then incorporated into a survey of boards in the voluntary sector. We present the results of this latter phase of the research by focusing on the associations between the five patterns and the background characteristics of board members, organizational and environmental variables, and board and organizational effectiveness. The results of the study suggest that power is an important while largely neglected aspect of board governance in the not-for-profit sector.     

Female leaders and board performance in member‐serving nonprofit organizations

Despite an active stream of “good governance” research, there is not yet much nonprofit scholarship examining how the gender composition of a board or its leadership relates to board performance. This article helps to fill this gap, focusing on the governance practices of US‐based nonprofits serving a domestic or international membership. A structural equation model finds that the presence of female leaders relates to the performance of nonprofit boards both directly and indirectly through these leaders' presumed influence on board characteristics and operation. This research advances the field by empirically testing a longstanding theory that board performance is both multidimensional and contingent on the market and labor environment, organizational capacity and other characteristics—in this case, gender dynamics. We find there are some positive relationships between female board leadership and clearly defined measures of board performance. These findings also suggest that a strategy to balance a board's gender may serve many nonprofits, but gender representation works in tandem with other board characteristics.     

Organizational capacity and entrepreneurial behavior

In this research note, we examine the relationship between organizational capacity and entrepreneurial behavior in a global sample of 165 nonprofit organizations operating in a single, rapidly growing field of nonprofit activity. Our findings show a strong relationship between organizations' entrepreneurial behavior and levels of organizational capacity. We discuss our results relative to the importance of both organizational capacity and entrepreneurial behavior in a rapidly growing nonprofit subsector. The results contribute to the continued development and refinement of theoretical and empirical work on the causal links between organizational capacity and entrepreneurial behavior more generally.     

Local Unit Performance in a National Nonprofit Organization

Board members and chief professional officers (CPOs) from the local units of a national nonprofit organization completed questionnaires that revealed (1) statistically significant differences as to what functionsand activities each believes the other should do and does perform, (2) areas of possible tension between boards and their CPOs, and (3) those activities with significant correlations to common performance measures established by the national organization. Both board members and CPOs believe boards should be doing more than they do, with CPOs being more critical of board members than they are of themselves or than board members are of them. There is significant tension between boards and CPOs regarding responsibility for some operational issues. However, neither the presence nor absence of tension was significantly correlated with the effectiveness of the organization. Finally, self‐reported measures of effectiveness correlated with external measures developed by the national organization, providing some evidence that self‐reported measures may be valid.     

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.     

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.     

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.     

Advancing nonprofit organizational effectiveness research and theory: Nine theses

Drawing on the general literature on organizational effectiveness, the specialized literature on nonprofit organizational effectiveness, and recent research in the field, this article advances nine theses, or conclusions, about the effectiveness of public benefit charitable, nonprofit organizations (NPOs). NPO effectiveness is (1) always comparative, (2) multidimensional, (3) related to board effectiveness (but how is not clear), (4) related to the use of correct management practices but not in any simple “best practices” way, and (5) a social construction. Furthermore, (6) it is unlikely that there are any universally applicable best practices that can be prescribed for all NPO boards and management, (7) organizational responsiveness is a useful organizational‐level effectiveness measure, (8) distinguishing among types of NPOs is important and useful, and (9) level of analysis makes a difference in researching and understanding effectiveness. The article concludes by considering implications for organizational practice, boards and governance practices, program evaluation, including program outcomes assessment, and capacity building and capacity builders.     

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.     

Roles and Responsibilities of Community Nonprofit Boards

In this study, roles and responsibilities associated with nonprofit boards of directors were supported by a framework inclusive of Strategic Activities, Operations, and Resource Planning roles. This framework can be valuable for paid staff and volunteers in understanding the broad scope of the work of nonprofit boards and practical applications such as agenda setting for board meetings and designing board training and development activities.     

Social capital and nonprofit leaders

The concept of social capital seems to be a very compatible, useful, and important one for nonprofit organizations. Nonprofits must sustain and enhance the original social capital with which they were formed and broaden it into a variety of key areas. Nonprofits and their leaders must foster social capital in order to recruit and develop board members, raise philanthropic support, develop strategic partnerships, engage in advocacy, enhance community relations, and create a shared strategic vision and mission within the organization and its employees. Nonprofit executives have a pivotal role in carrying out these functions, but they do so through relationships and networks with others. These activities are time‐consuming and demanding, and they require planning. This article provides a focused literature analysis on the concept of social capital as it applies to nonprofit management and leadership. The author views the literature with respect to definitions of social capital and the way nonprofits generate and mobilize social capital in order to achieve organizational goals. The author also cites methods for measuring social capital.     

Social Justice Approach to Community Development

This article presents a case study examining nonprofit board and director roles in the first 5 years of an organization’s life, using 3 organizational change approaches: contingency, life-cycle, and cognitive-interpretive. Data include monthly board meeting minutes and director’s reports for the first 5 years of a nonprofit human service agency’s existence. The article concludes that although all 3 theoretical approaches are productive explanatory frameworks for organizational change, each one, on its own, is incomplete. The findings point to the need for further theoretical synthesis and paradigm elaboration to inform our understanding of nonprofit director and board relationships.     

Common Agency in Nonprofit Advocacy Organizations

Most theories of nonprofit organizations and nonprofit leadership recognize the multitude of stakeholders—including board members, donors and volunteers, funders, the media, and policy makers—that organizational leaders must contend with in doing their work. For nonprofits engaged in advocacy, demands from stakeholders may be even more challenging to meet. Although stakeholder theory recognizes the effect of various groups on an organization, it does not explain how leaders manage the preferences of their often‐competing stakeholders while they make choices for the organization. This study develops a common agency framework, evaluating the roles of three groups crucial to nonprofit advocacy organizations: the organization's board of directors, elected officials, and donors/members. The common agency framework is then illustrated with interviews with leaders of nonprofit advocacy organizations in California. Findings suggest that the leaders of these groups have a significant amount of discretion in guiding their organizations’ activities and operations.     

Entrepreneurial NPOs in Russia: Rationalizing the Mission

Nonprofit organizations in Russia are introducing for-profit activities as a means of gaining autonomy from external donors, and as instruments of strategic planning and sustainable development. This study focuses on organizations that work with welfare provision and explores how they reconcile entrepreneurial activities with their social mission. More specifically, we interrogate how two institutional logics, business and nonprofit, are defined and reconciled in organizational identities, structures and hierarchies. Socially oriented nonprofits define their mission through service to beneficiaries, through personal and professional dedication to beneficiaries’ well-being, and through making an impact on public policies and the society at large. They mimic a business approach in strategic planning and meticulous reporting, but subordinate profit-seeking to social mission by integrating entrepreneurial activities into already existing organizational structures, or by separating them into independent entities.     

The trickle‐down effect of ethical leadership in nonprofit soccer clubs

Nonprofit soccer clubs are currently facing many ethical challenges, such as abuse, doping and match fixing. While research suggests that organizational (board) ethical leadership may be effective to tackle these ethical issues, empirical support in the context of sport remains limited. Drawing on the perceptions of a sample of nonprofit soccer players (n = 438) and coaches (n = 106), we indicate that the coaches play an important mediating role regarding the associations between board ethical leadership and ethical climate. The theoretical underpinnings of ethical leadership—formed by social learning theory and social exchange theory—and the social distance between the board and the players in nonprofit soccer clubs provide support in this regard. In sum, our results demonstrate that the influence of board ethical leadership in nonprofit soccer clubs partly trickles down to the players via coach ethical leadership. Finally, practical implications for nonprofit soccer club management are discussed.