Strategy formulation in nonprofit social services organizations: A proposed framework social services organizations

This article proposes a framework for determining strategies in nonprofit social services organizations. A review of the literature concerning strategy choice models is combined with an analysis of the unique characteristics of nonprofit social services organizations to develop the proposed framework, which improves on existing models by encompassing a wider array of strategic factors and being applicable to a wide variety of nonprofit organizations. The author provides examples of the model's applications, discusses the usefulness and limitations of the model, and concludes with suggestions for future research.     

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.     

Exploring the association between board and organizational performance in nonprofit organizations

Note: This study investigated six dimensions of effective board performance, as suggested by Chait, Holland, and Taylor (1991), in relation to three theoretical explanations (agency theory, resource dependency theory, and group/decision process theory) of how board governance activities potentially influence organizational performance. Survey research findings revealed that strategic contributions from the board are more robust in organizations with higher financial performance. In addition, organizations that are judged to be higher performing also reported having high‐performing boards across all dimensions. In particular, the interpersonal dimension provided a unique explanation of judgments of organizational performance.     

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.     

Transformational leadership,organizational culture,and innovativeness in nonprofit organizations

This is an exploratory study of leadership, organizational culture, and organizational innovativeness in a sample of nonprofit human service organizations: Associations of Retarded Citizens. Although leadership has been held out as one of the most important predictors of innovation, this study found it was not correlated with organizational innovativeness. Examination of the relationships between leadership and cultural variables provided some alternative explanations for this finding. Positive relationships among transformational leadership, organizational values, and cultural consensus (degree of agreement among employees on those values) indicate that leadership practices employed in this sample created strong cultural consensus around values that may inhibit innovation. These findings suggest that examining the link between leadership and organizational culture is important for understanding how leadership and innovation are related. This article sets out practical implications, based on the results of the study, that may help nonprofit managers create workplaces supportive of innovation.     

The economics of performance management in nonprofit organizations

This article analyzes whether and how private‐sector notions of performance management apply to nonprofit organizations. To this end the author shows that each concept of performance management used in the private sector is based on a specific economic theory of the firm and its environment. Before transferring concepts and tools derived from a certain model of the firm and its environment to nonprofit organizations, one must determine whether the assumptions underlying this model are also adequate for nonprofit organizations. Otherwise, one must first adjust those assumptions and analyze whether the derived concepts and tools are still meaningful in the new context; if not, one must determine how to modify them accordingly. The analysis elaborates on the differences between for‐profit and nonprofit organizations that are important for applying performance management concepts. Moreover, the author discusses the practical implications for the use of balanced scorecards in nonprofits.     

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.     

Founders' syndrome in women's nonprofit organizations: Implications for practice and organizational life

This qualitative study examines the impact of “founders' syndrome” in ten feminist nonprofit organizations, giving attention to the ways in which original members and organizers (founders) retain control and set the agenda of these organizations beyond their official terms of office. In these community‐based organizations, founders' syndrome provides stability, but it also affects the ability of younger members to contribute and influence organizational direction. Implications for practice are drawn from the study's results.     

The relationship between formal planning and performance in nonprofit organizations

A study of 240 YMCA organizations revealed that regardless of organization size, those organizations that used a formal approach to strategic planning had higher levels of financial and social performance than those with less formal processes. The better performers also assigned the responsibility for planning to a strategic planning subcommittee of the board rather than to the board's executive committee or to an outside consultant.     

The social processes of interorganizational collaboration and conflict in nonprofit organizations

This article takes a qualitative approach to research in advancing knowledge of the social process by which interorganizational relationships are established and nurtured in nonprofit organizations. The findings reveal that a balance of dependence and autonomy is needed for initiating interorganizational relationships. These relationships are stabilized at the interpersonal level through positive attributes (attitudes, perceptions, and trust) and interpersonal ties of individuals representing their organizations. Sources of conflict, such as value differences, divergent goals, and personality clashes, also influence the working relationships of these organizations.     

Managers of nonprofit organizations are rewarded for performance

We consider the effect of performance on the compensation of nonprofit executives. Performance is measured as the ratio of revenue from a particular activity (such as fundraising or program services) to the expenditures associated with those services, exclusive of managerial compensation. This is consistent with previous works, which use measures of size, spending, or budget percentages as measures of performance. We also consider whether the compensation received by the executives enhances their performance. The empirical results support the hypothesis that compensation and performance are simultaneously determined.     

Role ambiguity and volunteer board member performance in nonprofit sport organizations

We explore the relationship between multidimensional role ambiguity and individual board member performance within nonprofit voluntary sport organizations. Role ambiguity accounted for 29 percent of the variance in perceived board member performance, and ambiguity about one's responsibilities was the strongest predictor. These findings extend our understanding of the drivers of individual board member performance within voluntary sport organizations and the multidimensional nature of role ambiguity. The study supports previous arguments that knowing what to do is fundamental to one's performance, and more critical than knowing how to do it, and what difference it makes.     

A social identity model of prosocial behaviors within nonprofit organizations

This study draws on social identity theory, while developing and testing the Social Identification Model of Prosocial Behavior among voluntary participants in nonprofit organizations. This model posits relationships between organization identification, commitment, satisfaction, and prosocial behavior among nonprofit volunteers. Path analysis results indicate successful identification of the model. Specifically, when volunteers identified with their nonprofit, they had higher levels of prosocial behaviors, commitment, and satisfaction. This study provides several important extensions to social identity theory and nonprofit literatures while highlighting the need for further research examining motivations behind prosocial behaviors within nonprofits.     

Adoption of social media for public relations by nonprofit organizations

This survey of nonprofit public relations practitioners (N = 409) applied the Unified Theory of Acceptance and Use of Technology (UTAUT). Findings indicate that women consider social media to be beneficial, whereas men exhibit more confidence in actively utilizing social media. Organizations with specified public relations departments were more likely to adopt social media. Positive correlations between UTAUT factors and credibility indicated a greater likelihood to adopt social media.     

Succession planning in nonprofit organizations

Executive leadership is a critical component in the success of nonprofit organizations. An upcoming period of leadership transition is anticipated as substantial numbers of baby boomers, now at the peak of their careers, reach retirement age. With nonprofit organizations growing in both size and number, an impending leadership deficit is a concern. To help prepare for these important transition events, this study focuses on planning for executive succession. A survey exploring details of succession planning was undertaken of executive directors of 501(c)(3) charitable nonprofits and CEOs of 501(c)(4) cooperative organizations—the more business‐oriented user‐owned and controlled nonprofit organizations prominent in agricultural, utility, and finance sectors. We found that planning and preparation do not match the level of interest and concern for executive succession. Although the replacement of long‐serving leaders is acknowledged as difficult, few proactive steps are undertaken.     

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.     

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.     

Engaging stakeholders through social networking: How nonprofit organizations are using Facebook

Since social networking sites, such as MySpace and Facebook, began allowing organizations to create profiles and become active members, organizations have started incorporating these strategies into their public relations programming. For-profit organizations have used these sites to help launch products and strengthen their existing brands; however, little is known about how nonprofit organizations are taking advantage of the social networking popularity. Through a content analysis of 275 nonprofit organization profiles on Facebook, this study examines how these new social networking sites are being used by the organizations to advance their organization's mission and programs. Solely having a profile will not in itself increase awareness or trigger an influx of participation. Instead careful planning and research will greatly benefit nonprofits as they attempt to develop social networking relationships with their stakeholders.     

Conflicting managerial cultures in nonprofit organizations

The increasingly managerial orientation of both staffs and trustees of nonprofit organizations appears to have led to conflict rather than cooperation. A case study of an organizational crisis explores how managerialism has obscured some of the unique constraints under which nonprofits operate and suggests ways of making these constraints more salient.