Understanding the Compensation of Nonprofit Executive Directors: Examining the Influence of Performance and Organizational Characteristics

In this study we aimed to provide a better understanding of executive compensation in nonprofit organizations. We examined factors including organizational size, market, subsector, organizational type, staffing level, and organizational performance as potential influences driving variation across the nonprofit sector. The models utilize data on the population of nonprofit organizations required to file Form 990 returns with the Internal Revenue Service in order to broadly examine compensation. The results indicate associations between various measures of performance and compensation in nonprofit orga‐nizations and also suggest that different types of nonprofits may be sensitive to different measures of performance.     

A New Focus on Nonprofit ­Entrepreneurship Research

One distinctive contribution nonprofit entrepreneurship research brings to the broader domain of nonprofit studies is an explicit focus on the process of new nonprofit organizational emergence. This article asserts that in order for nonprofit entrepreneurship scholarship to continue to evolve, it is necessary to focus more on what happens before a new nonprofit is formally founded, during the so‐called nascent phase. Using conceptual as well as empirically derived arguments, this article illuminates why nascent nonprofit research is necessary and valuable to nonprofit entrepreneurship scholarship and highlights promising areas for future research.     

Building a legacy of volunteers through servant leadership: A cause‐related sporting event

This study explores the leadership style of the founder of a cause‐related sporting event and investigates the effects of this style on motivating volunteers. The National Kidney Foundation Surf Festival, established more than twenty‐five years ago to benefit people with kidney disease, was selected as an extreme case because of the event's longevity and success. Data were collected through semi‐structured personal interviews, document analysis, and personal observation. Results indicated that the founder is a servant leader. Three key themes of servant leadership, and its influence on volunteer motivation, emerged from the data: generating a shared vision dedicated to helping others, building a caring and loving community, and creating the freedom and resources for followers to become servants themselves. Our findings also indicated that the spiritual and moral tenets of servant leadership are applicable to secular nonprofit organizations.     

Devolution of Services to Children and Families: The Experience of NPOs in Nanaimo,British Columbia,Canada

This study focuses on the current experience of Nanaimos nonprofit family and child service organizations (N = 29) providing services on behalf of government and their adaptation to this devolution. The effects and consequences of contracting on organizational practices, accountability, and services were explored through interviews and focus groups with executive directors, board members, line staff, government representatives, and the United Way. Results show that a significant proportion of funding comes from provincial government contracts. The funding climate is uncertain, and there is considerable confusion, stress, and time involved with the contracting process. Accountability requirements are demanding and nonprofit organizations (NPOs) express concern about a shift to a business management model. Recommendations include a need for increased collaboration between NPOs, a body that speaks for the voluntary sector, and improved relationships between NPOs and government funders.     

Characteristics of Innovative Nonprofit Organizations in Argentina

The purpose of this study was to discover the characteristics of innovative organizations as perceived by employees of Argentine nonprofit organizations. The free listing technique, adapted from the field of cognitive anthropology, was used to achieve this task. Fifteen representatives of a variety of Argentinean nonprofit organizations participated in the study. Among the highest rated characteristics were: searching for new ways, solutions, and unconventional forms of work; adapting to new times; suggesting new forms for solving problems; and reflecting over organizational activities and actions. Rated as least characteristic were: encouraging role changes within teams; focusing on organizational mission; not being afraid of failure; and generosity (sharing information with other organizations).     

Institutional Pressures and Organizational Capacity: The Case of Outcome Measurement1

A central claim of new institutional theory is that organizations in a field come to exhibit shared characteristics over time. Recent literature emphasizes variation across field members, but has yet to concur on why differences occur. This study tests institutional explanations for the uneven implementation of one organizational practice—outcome measurement, an evaluative technique used to assess the impact of an organization’s programs. We analyze data from a new survey investigating the practices of nonprofit organizations (N = 379) and argue for the inclusion of the concept of organizational capacity to account for the uneven implementation of outcome measurement. As predicted by new institutional theory, organizations are more likely to adopt outcome measurement if key actors promulgate its use. However, the implementation of outcome measurement is best explained by the addition of the concept of organizational capacity alongside variables drawn from new institutionalism. Nonprofits with adequate organizational capacity, operationalized—following Weber’s concept of bureaucracy—as the presence of written rules and members with specialized knowledge, are better able to respond to isomorphic pressures to implement a new organizational practice. Our findings expand scholarship that examines the intersection of institutional dynamics and organizational traits in accounting for patterns of implementation of practices across an organizational field.     

Sustainability of Nonprofit Human Service Organizations in a Neighborhood Context

Nonprofit human service organizations (NHSOs) carry both practical and symbolic implications for serving local needs. Whether neighborhood characteristics influence the existence of NHSOs is a critical inquiry, albeit with mixed results. This study examines the relationship between neighborhood characteristics and organizational sustainability based on the data of the capital district of New York State. Spatial analysis showed that the largest concentration of NHSOs remains in the inner‐city neighborhoods. Regression analysis identified small revenues of organizations and density of African American residents as significant factors that are negatively associated with the longevity of NHSOs, controlling for neighborhood income level. These findings imply that small‐budget organizations in African American neighborhoods may experience a quick turnover, which prompts a deeper understanding of how NHSOs attempt to sustain in such neighborhoods.     

Examining the influence of organizational characteristics on nonprofit commercialization

A growing body of literature discusses the (dis)advantages of nonprofit organizations becoming commercial by engaging in the sale of organizational services and products. However, when explaining this phenomenon, scholars tend to focus on resource uncertainty, thereby disregarding the organizational ability to commercialize. Complementing resource dependency theory with insights from contingency theory, this study presents arguments drawn from a comparative case study of six sociocultural nonprofits in Belgium. We find that, when resource uncertainty is similar, organizational differences in terms of commercial income can be explained by differences in (a) organizational origins, (b) professional capacity, and (c) types of tasks. We conclude that organizational characteristics can either enable or disable the ability of nonprofits to commercialize and consequently their ability to self‐sustain in an increasing challenging resource environment.     

Media Publicity and the Voluntary Sector: The Case of Nonprofit Organizations in New York City

Media publicity is an important resource for contemporary voluntary associations, but very little is actually known about the resources and organizational characteristics that are most important for getting media attention. To address this question, we collected and analyzed data on the organizational attributes and news publicity of 739 nonprofit organizations in New York City. We find that an organization's income, paid staff, membership size, and library resources are significantly related to getting media publicity, whereas the number of chapter affiliations is inversely related to publicity. Association type is also a significant factor that influences an organization's ability to get publicity. We discuss the implications that these findings have for current debates about advocacy and civic engagement in the nonprofit sector.     

Interorganizational relations of nonprofit organizations: An exploratory study

In their several roles as appropriators, redistributors, and providers, nonprofit organizations are involved in complex transactions with organizations in the nonprofit, for-profit, and public sectors. The purpose of this exploratory investigation, based on a sample of New York State nonprofits, is to explain variation in the extent of intrasector and intersector transactions. Various kinds of prevailing environmental complexities, coupled with the ways in which organizations are structured to deal with these complexities, help explain variation in the extent of organizational transactions. Another important predictor is directors' perceptions of main problems affecting the activities of their agencies. These findings are consistent with the conclusion that environmental uncertainties and perceptions about them affect the nature and extent of interorganizational contact.     

Resource Dependence Patterns and Organizational Behavior/Structure in Korean Nonprofit Organizations

This article examines the relationships among the three dimensions of resource dependence patterns (RDPs) and organizational formalization and goals in nonprofit organizations (NPOs). These three RDPs (that is, the appearance of the financial resource inflow) are resource dependency, resource diversity, and resource competitiveness. The empirical findings suggest that high dependency on government funding (high resource dependency) is positively associated with organizational formalization, although resource diversity does not have any explanatory power on organizational behavior and structure, and that a very competitive environment for resource acquisition significantly affects goal setting in NPOs. In particular, resource competitiveness well explains goal clarity and goal change in NPOs. NPOs with high resource competitiveness present clearer organizational goals or missions and are likely to experience frequent goal change.     

Does Fundraising Professionalization Pay?

Although fundraising organizations in the third sector have gone through a progressive professionalization process, it remains unclear whether this development has led to any financial benefits. This article focuses on the question of whether or not it pays off for fundraising organizations to invest in professionalization. The data for this study come from 165 organizations representing 45 percent of the Swiss fundraising market. We first propose the term “organizational fundraising capability” as a new construct for measuring the degree of professionalization and rationalization in fundraising management. We then analyze its relationship to overall net revenue from donations as well as the growth of net revenue from donations. Our analysis indicates that, in addition to organizational size measured by total revenue, revenue share from donations, and expansion strategy, fundraising capability makes an important contribution to explaining both an institution's net revenue from fundraising and the level of increase in net donations. The consequences for the development of professionalization and rationalization in fundraising are discussed.     

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.     

Sociétés Coopératives d'Intérêt Collectif: The Arrival of Social Enterprise Within the French Social Economy

The French nonprofit sector has been in existence since July 1, 1901 when the legal form of associations was created. Since then, as a consequence of legal, fiscal, and cultural restrictions, it has developed characteristics that are markedly different to those of other nonprofit sectors. This paper focuses on one such characteristic that makes the French nonprofit sector virtually unique, that is the restrictions imposed on social entrepreneurism. It was not until July 17, 2001 that a new organizational form called Sociétés Coopératives d'Intérêt Collectif (SCIC) was created specifically to address this anomaly. This paper discusses the context within which this organizational form was created, and the potential advantages that it offers in respect to facilitating the development of social enterprises. The paper also explains why a specific organizational form was required and why it was placed outside the nonprofit sector. It concludes by identifying potential problems concerning organizational effectiveness in delivering socially beneficial services and the difficulties that may arise as a consequence of SCIC's unique governance structure.     

Cooperative Membership and Community Engagement: Findings From a Latin American Survey

Cooperatives as organization have mainly been explored in the field of business and management due to their operation in the business sector, and studies of nonprofit organizations have given little attention to them. Consequently, cooperatives studies have tended to examine economic outcomes, such as productivity and job security, comparing them to conventional business firms. Nevertheless, cooperatives are membership associations and have organizational characteristics in common with other types of voluntary associations. Furthermore, one explicit organizational principle of cooperatives is concern for community, and their contributions to the community have been covered frequently by media. Therefore, it is imperative to examine cooperative members’ community engagement, and compare it to other types of association members. Using a national sample of Venezuelans, the relationships between association memberships and community involvement were compared across different types of associations. The results showed that cooperative members had a higher likelihood of being involved in community matters than those from other types of associations. Although the Venezuelan cooperatives have received vast support from the Chavez government for community development, this result can have an implication on the cooperatives’ organizational identity as those who provide members with resources necessary for civic engagement beyond the organizations.     

There Comes a Time: Biography and the Founding of a Movement Organization

The social movement literature lacks a historically sensitive analysis of pathways to founding and leading a movement organization. I connect biography and history to explain the timing and form of organizational emergence. I show how Robert Welch’s founding of the conspiratorial John Birch Society was pre-dated by moral shocks, a supportive culture and social network, experience organizing people in committees, as well as some dumb luck (in the form of fortuitous timing), all of which grew his reputation in the latent conservative movement. A national reputation allowed him to gather resources and unite regionally dispersed radical rightists into a coherent national organization.     

How organizational characteristics affect the adaptive tactics used by human service nonprofit managers confronting financial uncertainty

The way that nonprofits respond to funding uncertainty is crucial to their ability to meet goals and position themselves for future success. This article investigates how structural, managerial, and financial characteristics affect the adaptive tactics used by human service nonprofits during times of financial stress. These tactics include adding new programs, reducing programs or staff, expanding or starting joint programs, pursuing earned income, and expanding advocacy involvement. Using longitudinal data on human service nonprofits collected on either side of the 2002–2003 economic downtown, we find that larger size provides organizations with a unique ability to choose among different adaptive tactics, as larger size was significantly predictive of adding new programs, reducing programs, expanding advocacy, and pursuing earned income. Strategic planning was positively associated with innovative tactics such as starting joint programs or pursuing earned income. Financial stress or declines in an organization's major funding source led to cutbacks, as expected, but managers who foresaw these challenges were able to respond proactively by adding programs or starting joint programs. However, managers with more training did not respond much differently than did other managers, and organizational age and use of performance management tools had no effect in guiding organizational responses to financial uncertainty.     

Religious Nongovernmental Organizations: An Exploratory Analysis

This paper represents the first systematic attempt at an analysis of religious nongovernmental organizations (RNGOs). Largely ignored as an organizational field, RNGOs constitute a new breed of religious actors shaping global policy–an organizational hybrid of religious beliefs and social activism at local, national, and international levels. This paper proposes a definition of RNGOs, traces the emergence of RNGOs from an historical perspective, and situates them in their current religious and sociopolitical contexts. Drawing on interviews and documentary data from a sample of 263 United Nations-affiliated RNGOs, the author proposes an analytical framework to examine the religious, organizational, strategic, and service dimensions of these organizations. Religious nongovernmental organizations' unique contributions to the redefinition of a just society as well as the sociopolitical challenges arising from their religious identity are discussed.