Determinants of the recovery of financially distressed nonprofits

Financial ratios are traditionally used to predict and diagnose financial vulnerability; this is helpful, but leaves unanswered how the vulnerable nonprofit should prioritize this information in order to survive. Using panel data, this empirical study observes the financial behaviors of distressed nonprofits for 4‐year periods where the first 2 years are financially vulnerable. Two definitions of vulnerability are tested: when liabilities exceed assets (insolvency) and when net assets shrink by more than 25% annually (financial disruption). In determining which nonprofits recover during the final 2 years, we find that the type of vulnerability impacts which financial indicators a nonprofit should target, and that common tactics such as improving profitability may be counterproductive. Finally, we do not find evidence for liabilities of newness or smallness in the statistical analysis.     

Paying nonprofits: Streamlining the new york state system

Many state and local governments now rely on contracts with nonprofit organizations to deliver a broad range of public services. Nonprofits benefit from these contracts but can also experience costly delays in obtaining payment for services delivered. The article describes two laws adopted by New York State to curb these delays. One law deals with slow payment of vouchers. The other addresses the costly problem of delayed delivery of contracts for activities such as child care or services to the disabled where nonprofits cannot stop delivering services without harm to the recipients.     

Small,minority‐based nonprofits in the information age

Pundits of information technology stress that the Internet opens new arenas for nonprofits through the ability to share information both locally and globally. New technology also changes funders' and other evaluators' expectations regarding proposals. Although new technology makes life easier for organizations with budgets, time, and familiarity with technology to buy and use these new tools, nonprofits that lack these resources fall even further behind in their quest to support and improve their programs. Based on ethnographic research in Kenosha, Wisconsin, this article explores the role of changing technology in the ability of small nonprofits to succeed in implementing their organizational mission. Using case studies, this article compares the experience of nonprofits and church mission projects based in the African American and Latino communities in this small city to that of two mainstream organizations in gaining funding and the general perception of those agencies in the local community. The article argues that expectations about the use of technology increase the gaps between a community's haves and have‐nots. Kenosha organizations based in communities of color are particularly at risk due to already low funding and lack of staff familiar with new technologies. The article demonstrates that the key is often not access to technology or technical assistance but the time to make the best use of available technology.     

CompassPoint Nonprofit Services: strengthening the capacities of nonprofits (1971-2008)

CompassPoint Nonprofit Services is a nonprofit organization that delivers cutting-edge research and support services to the nonprofit community. Over its 30-year history, CompassPoint has transitioned from a small management support agency into a nationally-recognized leader in nonprofit capacity building and nonprofit management research. Through its strong internal operations and external connections, the agency has been able to stay current on the multiple challenges facing the local and national nonprofit community. CompassPoint has been a valuable resource for the nonprofit sector as it has struggled to retain its identity over the past 30 years, in relation to political and economic changes that have altered the functioning of the sector as a whole.     

Measuring quality for human service improvement: How nonprofits meet the quality requirements of public authorities

The growing pressure for service quality has led to an increase in the dissemination of quality models in nonprofit human service organizations. In spite of this, little is known about their implementation. The present study therefore examines how quality management directives imposed by public authorities affect the adoption and use of quality measurement systems under different sets of conditions. Key findings, based on survey data from 536 human service nonprofits in Switzerland, suggest that external quality requirements foster the adoption of measurement systems to the greatest degree, but simultaneously reduce their actual utilization for service improvement. The strength of these effects is contingent on the organizations' resources and the quality of indicators. Managers' commitment to quality measurement shows the strongest effect on the use of quality measurement systems. These findings and the implications for future research and practice will be discussed.     

Models and methods for characterizing the structural parameters of groups

This paper outlines and illustrates the application of loglinear models for characterizing the structural parameters of groups, as conceptualized by Blau (1974, 1977). Models for nominal parameters are those in which an ingroup outgroup distinction is embodied. Models for graduated parameters introduce distance effects. These models appear to be useful supplements to spatial techniques for identifying patterns of differential association, and they have implications for the calculation of proximity estimators in the use of those techniques.     

The most critical issue facing the ASA

The ASA worries that it may be allowing organizational fragmentation to contribute to intellectual disarray in the discipline. ASA should recognize that the increase in the number of sociologists has made it easier to start new, economically viable organizations, with their own journals, prizes, and meetings. A serious problem facing ASA is that the American Sociological Review shows an editorial bias toward quantitative research. Sociologists need to strengthen alternative organizations-regional and specialty-especially among groups which differ politically from ASA, so that it will not try to speak for all of us. He is co-editor (wih Michal M. McCall) ofSymbolic Interaction and Cultural Studies (1990, Chicago: University of Chicago Press).     

Making the most of investment in training

The paper addresses the dilemma of undertaking qualifying training, in a harsh and competitive economic climate against a backcloth of identifiable training need, particularly in residential services.

Certificate in Social Service (CSS) training is used as an example in order to examine ways in which operational and training priorities can be related to manpower planning and individual career expectations, in order to make the best use of scarce resources. Three stages are identified: before, during and after training, when careful thought can enhance the experience of students, their immediate colleagues at work and, most importantly, the clients.     

The quality of employment in the nonprofit sector: An update on employee attitudes in nonprofits versus business and government

Results from a survey of a national sample of 1,190 working adults update findings collected in 1977 (Mirvis and Hackett, 1983) on the characteristics and attitudes of people working in nonprofits. As in the earlier survey, it shows that people employed in the private nonprofit sector gain more satisfaction from their jobs than their counterparts in business and government and have more trust in their management. still, people working in nonprofits are just as concerned that their employers will “take advantage” of them and, in contrast to the 1977 survey, are no more psychologically committed to their organizations than are people in the other sectors.     

Individual versus family psychotherapy in managed care: comparing the costs of treatment by the mental health professions

In an effort to understand how psychotherapy is practiced in the "real world," outpatient claims data were examined to determine the cost of individual and family therapy provided by marital and family therapists, master's nurses, master's social workers, medical doctors, psychologists, or professional counselors. Claims for 490,000 unique persons over 4 years were obtained from CIGNA. Family therapy proved to be substantially more cost-effective than individual or "mixed" psychotherapy. Physicians provided care in the fewest sessions, marital and family therapists had the highest success (86.6%) and lowest recidivism rates (13.4%), and professional counselors were the least costly. Outcomes were overwhelmingly successful, with 85% of patients requiring only one episode of care.     

Ecological restoration volunteers: the benefits of participation

There is an international volunteer movement to protect and restore sensitive natural landscapes. In Illinois alone, almost 40,000 acres of rare prairie, oak savanna, wetlands and woodland ecosystems in urban and suburban communities are monitored and managed by volunteers. As natural habitats disappear or become degraded worldwide, it is increasingly important to understand how a personal involvement with nature, in the form of restoration, benefits the individual as well as aiding in species and ecosystem survival. This study examined the satisfactions that volunteers derive from prairie restoration in the Chicago metropolitan area. Questionnaire responses from 263 volunteers indicate that volunteers experience high levels of many different satisfactions. Tenure, frequency and extent of involvement in restoration were used to predict restoration satisfactions, life satisfaction and life functioning. Implications for recruiting and sustaining volunteer involvement in restoration efforts are discussed.     

Producing the natural: Mobilities and the managed aesthetics of nature

Nature can be a nebulous, often contradictory concept that holds immense cultural and emotional weight for many. Philosophers and social scientists have frequently dissected its meaning and shared significance, especially with respect to environmental issues. This paper analyzes nature as experienced and understood in everyday life in Western society, arguing that the most salient, intuitive mode of understanding the concept is a visual–pictorial one. It further argues that nature is expressed through emplaced aesthetics managed and produced through various forms of “mobility,” or socially produced movement, as theorized by the writers of the “new mobilities paradigm.” The paper considers two general contexts for this process: the production of aesthetic nature in urban settings and in extra‐urban landscapes. Furthermore, it argues that these aesthetic expressions have a great influence on the epistemology guiding popular sensibilities around our broader relationships to the nonhuman world and on the moral logic of much Western environmentalism.     

Expanding the repertoire of evaluation tools so that evaluation recommendations can assist nonprofits to enhance strategic planning and design of program operations

Data are the lifeblood of decision-making and provide a critical component into the complex mosaic from which decisions emerge. Evaluators and decision-makers should, therefore, continuously seek to explore the use of tools that can produce more meaningful, insightful, and useful data so that decision-making can be enhanced and improved. Traditional economic appraisal methods offer much and are very useful and relevant. Standard financial accounting reporting for tax purposes also provide insightful information on the organization’s financial health and that of its individual programs. However, neither offer insight into cost behavior—an important consideration for making program operations more efficient and for long-term strategic planning, forecasting, and design of program operations. Before COVID-19, programs were already challenged with competition for donor dollars and the pursuit for financial sustainability. The COVID-19 environment has considerably exacerbated these challenges. In this current environment, it is more important than ever for nonprofits to optimize limited financial resources to do more societal good. This paper will illustrate how selected concepts from cost and management accounting can be used by both independent program evaluators to improve their recommendations, as well as program administrators in-charge of nonprofits to enhance decision-making.