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.     

Determinants of Charitable Donations to Large U.S. Higher Education,Hospital, and Scientific Research NPOs: New Evidence from Panel Data

We provide improved evidence on effects that fund-raising, government support, and program revenue of U.S. higher education, hospital, and scientific research nonprofit organizations (NPOs) have on donations to those NPOs and provide improved estimates of price elasticities of donations to, and donor demand for output of, those NPOs. Applying econometric tests, we find the best-specified model is two-way fixed effects, which controls for organization-specific and time-specific factors. Results suggest that U.S. higher education, hospital, and scientific research NPOs fund-raise to the point where the marginal fund-raising dollar brings in zero dollars of donations, donor demand for output of hospitals and scientific research NPOs is price inelastic and price elastic, respectively, and results are not sensitive to specification of price.     

The Contribution of NPOs to Family Policy Formulation in EU Member and Applicant States

This paper examines the role of nonprofit organizations (NPOs) in the process of family policy formulation in eight member states and three applicant states of the European Union. Drawing upon interviews with representatives from the nonprofit sector, the author argues that the experiences of NPOs in family policy-making vary considerably between countries because of the way state–nonprofit relations operate. Social origins theory illustrates why these variations exist by pointing to broad societal influences on the nonprofit sector, but new empirical evidence presented here suggests that, in a particular policy field, other factors, such as the significance of the field on policy agendas, the strength of one particular organization in a specific cultural context, party ideology, and financial viability of the NPO, shape the role of organizations in the formulation of policies     

Nonprofit organizations in between the nonprofit and market spheres: Shifting goals,governance and management?

In spite of the belief instilled by the New Public Management reforms that nonprofit organizations (NPOs) can benefit from more management, more measurement and more market practices, systematic knowledge on the organizational effects of NPOs incorporating business practices in their day‐to‐day functioning remains absent to date. This research note addresses this limitation by reviewing 49 research articles. The focus lies on the redefinition of nonprofits' mission and income streams, changing governance arrangements and shifting management practices. We find that, despite numerous detrimental effects cited in the literature, (a) generating commercial income can contribute to the financial stability of NPOs, and (b) hybridization towards the market domain can strengthen the organizational legitimacy of NPOs, suggesting that imitating for‐profit enterprises might contribute to nonprofit functioning in perception, rather than in practice.     

Structural Isomorphism in Australian Nonprofit Organizations

This paper assesses the extent of structural similarity or isomorphism among nonprofit organizations in Australia. Based on neo-institutional theory, the paper explains such isomorphism in terms of these organizations subordination and dependency, the uncertainties they face, and the networks of experts of which they are a part. The analysis uses the nonprofit component of a 2001–2002 random sample of Australian employment organizations. It finds surprisingly little isomorphism in this subsample and few differences in isomorphism according to the level of the factors thought to produce similarity. The discussion of the findings focuses on the suitability of the nonprofit sector as the appropriate organizational field within which isomorphism involving these organizations is likely to be produced. Industries, which include all organizations that produce the same product or service, be they nonprofit, for-profit, or government, may be more appropriate interactional fields for the development of isomorphism.     

From Consultation to Participation

Empirical research in the literature on accountability of nonprofit organizations (NPOs) toward their beneficiaries is scarce, and the available studies have a number of limitations. Our study attempts to overcome some of them and focuses on one specific component of accountability toward beneficiaries: beneficiary impact on organizational decision making and output. Data were collected by surveying general managers of 790 Belgian NPOs in fourteen industries. Results show that most NPOs implement some mechanisms to involve beneficiaries and their representatives in organizational policy making, mechanisms that vary between and within industries. Despite the existence of such mechanisms, their perceived association with impact on policy making and associated potential organizational effects is weak, though positive.     

Nonprofit cash holdings and spending: The missing role of government funding

Charitable nonprofit organizations have long been under scrutiny with regard to how they manage excess funds, particularly cash holdings. Given previous empirical evidence, agency problems have been treated as an effective lens to explain the consequences of cash holdings among nonprofits. That is, nonprofit managers spend cash holdings for their own interests as opposed to the social interests of the organization. This study revisits the question of how charities manage extra cash and further examines the role of government funding in nonprofits' spending decisions. The results suggest that nonprofit managers make decisions on how to manage extra cash in accordance with the level of cash holdings; therefore, agency problems do not effectively explain how nonprofits manage extra cash. Furthermore, the results illustrate two contrasting roles of government funding in nonprofits' financial behavior: government funding may be used to monitor unscrupulous behaviors among managers, but it may also restrain nonprofits from investing in human capital.     

Challenges in Managing Nonprofit Organizations: A Research Overview

The topic of management and nonprofit organizations (NPOs) continues to fascinate scholars. This paper draws on varying theoretical perspectives to explore their respective contributions to our knowledge of NPOs. The two longstanding and contrasting disciplines of economics and sociology have contributed most, traditionally, to the study of NPOs. However, neither of these disciplines has resolved all the dilemmas associated with NPOs. The standard economic model does not apply well to the distinctive nonmarket situation of NPOs. The sociological perspectives offer interesting insight, but fail to develop plans of action for NPOs. However, both of these traditional perspectives are starting to be eclipsed by the focus on marketing research.     

What Drives Advocacy? An Exploration of Value,Mission, and Relationships

How advocacy is interpreted and how it fits into an organization’s strategy are areas in need of additional study. Moreover, because nonprofit organizations are believed to have advocacy-based missions that drive their activities and services, the connection between an organization’s mission and its advocacy activities also needs further study. In an effort to address these issues, the purpose of this qualitative study was to explore how advocacy is interpreted in the context of an organization’s mission and how advocacy activities are viewed within human service NPOs. Five themes were identified, all providing support for findings in previous advocacy research.     

Staffing,retention, and government funding: A case study

This study analyzes the implications of government‐contract funding on the staffing pattern of a nonprofit agency, the Canadian Red Cross, Toronto Region. Furthermore, the study explains the implications of the staffing pattern on services and on the agency's organization. Staffing is one area that the literature on nonprofit organizations has not adequately addressed. The findings indicate that contract‐based funding leads to the hiring of temporary staff and affects the retention of employees. Although contract funding has some benefits, temporary staffing is detrimental to the agency's services. It affects not only employee recruitment and retention but also training. The results highlight how change in government funding from grants to contracts resulted in the agency's new staffing strategy and ultimately reduced the effectiveness of the services the agency provided to the community.     

Social Origins of Civil Society: Explaining the Nonprofit Sector Cross-Nationally

Recent research has usefully documented the contribution that nonprofit organizations make to social capital and to the economic and political development it seems to foster. Because of a gross lack of basic comparative data, however, the question of what it is that allows such organizations to develop remains far from settled. This article seeks to remedy this by testing five existing theories of the nonprofit sector against data assembled on eight countries as part of the Johns Hopkins Comparative Nonprofit Sector Project. The five theories are: (a) government failure/market failure theory; (b) supply-side theory; (c) trust theories; (d) welfare state theory; and (e) interdependence theory. The article finds none of these theories adequate to explain the variations among countries in either the size, the composition, or the financing of the nonprofit sector. On this basis it suggests a new theoretical approach to explaining patterns of nonprofit development among countries—the social origins approach—which focuses on broader social, political, and economic relationships. Using this theory, the article identifies four routes of third-sector development (the liberal, the social democratic, the corporatist, and the statist), each associated with a particular constellation of class relationships and pattern of state-society relations. The article then tests this theory against the eight-country data and finds that it helps make sense of anomalies left unexplained by the prevailing theories.     

Nonprofit entrepreneurial orientation: A systematic literature review and conceptual framework

The purpose of this study is to propose a set of factors that characterize the manifestation of entrepreneurial orientation (EO) in nonprofit organizations (NPOs), and we performed a systematic review of the literature. Initially, 17 studies were identified in different databases, and after a full reading of the documents that met the objective of this study, we selected and qualitatively analyzed 14 theoretical and empirical studies about EO in the nonprofit context. The studies analyzed allowed us to understand the characteristics of organizational entrepreneurship in NPOs, through the dimensions of innovativeness, proactivity, risk‐taking, autonomy, and competitive aggressiveness, in addition to the reciprocity dimension, which emerged from the literature. By adding reciprocity as the sixth dimension of the EO construct, it was possible to group a set factors related to each dimension which, after being refined, supported the proposition of a conceptual framework for an empirical analysis of entrepreneurial behavior in different contexts of NPOs. This study contributes to the systematization of factors that configure the manifestation of EO in the nonprofit sector, by proposing a conceptual framework entailing six dimensions of EO and propositions for future studies.     

Which Nonprofit Gets More Government Funding?

Government represents one of the most important funding sources for nonprofit organizations. However, the literature has not yet provided a systematic understanding of nonprofits’ organizational factors that are associated with their receipts of government funding. This study combines interorganizational relationships and organizational institutionalism literature to examine the determinants of nonprofits’ obtainment of government funding. Based on a survey of human service nonprofits in Maryland, this research finds that nonprofits with higher bureaucratic orientation, stronger domain consensus with government, and longer government funding history are more likely to receive government contracts and grants. Nonprofits’ revenue diversification, professionalization, and board co‐optation might have very limited impacts.     

Non-profit,for-profit and government organisations in social service provision: comparison of behavioural patterns for Austria

This paper investigates behavioural differences between non-profit organisations (NPOs), government organisations (GOs), and private market organisations (PMOs) as suppliers of nursery schools and retirement homes. On the basis of Weisbrod's undersupply model, the differentiated demand approach, and the public finance argument on the redistributive role of government, three hypotheses are theoretically specified and empirically tested: client differentiation; product differentiation; and price differentiation. NPOs and PMOs are shown to provide qualitatively better services and charge significantly higher prices than GOs. A clustering of clients with similar socio-economic backgrounds can be observed: GOs provide services for clients with lower economic and social status than private suppliers. GOs, holding more than two-thirds of the respective markets, are responsible for a basic provision of services; they pursue distributional goals by producing services themselves; only rarely a contracting out to private suppliers can be noted.Christoph Badelt and Peter Weiss are both in the Department of Economics, Vienna University of Economics and Business Administration, Vienna, Austria.Financial support from the Research Foundation of the Austrian National Bank (Jubiläumsfondsprojekt no. 2814) is gratefully acknowledged. The authors wish to thank Helmut Anheier, Henry Hansmann and Burton Weisbrod for valuable comments on an earlier draft, which was presented to the International Conference on Voluntarism, Non-government Organisations and Public Policy, Jerusalem, May 1989. The usual caveat applies.     

Organizational Antecedents of Pay-for-Performance Systems in Nonprofit Organizations

The applicability of pay-for-performance systems (PfP-systems) in nonprofit organizations (NPOs) is discussed controversially both in literature and in practice. Existing theoretical models emphasize the importance of the employee’s motivation and output control for the effectiveness of PfP-systems. However, empirical evidence on which factors influence PfP-system’s introduction in NPOs is still lacking. Based on an exploratory study of nine Austrian NPOs, this paper develops hypotheses on what organizational factors distinguish NPOs that rely on PfP-systems for managing employees’ performance differences from those that use alternative approaches (e.g., job enrichment, NPO-spirit). Findings suggest that decisions on the application of PfP-systems are influenced by five determinants: perceived degree of competitiveness regarding funding and service provision; degree of strategic freedom; clarity of strategic objectives; existence of management instruments; and organizational culture.     

Nonprofit Development in Hong Kong: The Case of a Statist–Corporatist Regime

This paper adapts Salamon, Sokolowski, and Anheiers social origins theory to argue that the nonprofit regime in Hong Kong can be characterized as statist–corporatist. This statist–corporatist regime displays the hybrid character of both a statist and a corporatist regime: its statist character can be seen in the high degree of autonomy of the state, its tendency to limit freedom of association, and the low commitment to social provision. Its corporatist character is evident in the high level of participation by designated nonprofit organizations in selected areas of social provision under state funding. It is shown how the development of this nonprofit regime was historically shaped by four factors; namely, the interest of the colonial state in maintaining domination, economic and public financial policy, the historical formation of the welfare system, and political regime change. The findings illustrate the distinct historical forces and the path of development in an Asian state that might affect nonprofit development.     

MEDIATING CUTBACKS IN HUMAN SERVICES: A CASE STUDY IN THE NEGOTIATED ORDER

The nexus between the social world of private nonprofit service organizations (NPOs) and their environment is examined through data from a national study of reductions in fiscal support and through focused interviews with a sample of chief personnel in agencies in Maricopa County, Arizona. As a study in how some organizations adjust to changes in their funding environment, these data provide a basis for assessing the relative impact of fiscal restraint on organizations, as well as accounting theoretically for the impact of structure through interpretive process, social order through social control, and the construction of a negotiated order. When faced with reductions in federal support, NPOs took different courses of action in order to avoid negative impacts. Interpreting the data from a negotiated order perspective suggests that agencies' adjustments were mediated by an awareness of the national and local contexts, the services they offered, the clients they served, and their general capacity to maximize their resource mobilization potential . In some instances this adjustment amounted essentially to redefining their relevant environment, which was accomplished by integrating the format, logic, and criteria of the external world of business. The agencies survived and in some instances prospered, but their distinctive symbolic structure was compromised.     

How individuals use nonprofit organizations’ social media pages: Understanding functions of and networks from individual posts for social change

Previous research has regarded social media pages of nonprofit organizations (NPOs) as the organizations’ strategic space for public engagement and further collective action. However, individuals may take advantage of organizations’ pages to form networks beyond the organizations to achieve their own goals, extending their engagement to connective action. Based on content analysis of individuals’ posts on 100 NPOs’ social media pages, this exploratory study develops an original categorization scheme and reveals unique functions of and diverse networks initiated from such posts. In this way, this study combines research on public relations and connective action and captures the transformed roles and dynamics of the public and the organizations as they work toward social change.     

Success and Failure of Nonprofit Organizations: Theoretical Foundations,Empirical Evidence,and Future Research

Success and failure of nonprofit organizations (NPOs) have been prominent themes in the nonprofit community for more than 30 years. However, since there is no common understanding on success and failure of NPOs, the research field is still fragmented. Drawing from research on organizational success and failure in the for-profit context as a theoretical background, this paper systemizes the academic knowledge on NPO success and failure. By shedding light on theoretical approaches used, empirical evidence on the determinants of these constructs, and the sectors analyzed most frequently in this regard, the paper develops an instructive research agenda concerning studies on success and failure of NPOs.     

How the State Shaped the Nonprofit Sector: Public Funding in British Columbia

This article examines how the state has used its spending power to shape the nonprofit sector in British Columbia since the 1960s. The province's thriving nonprofit sector and its polarized political culture provide an ideal case study for exploring the relationship between the state and nongovernmental organizations. The following study documents changes in state policy, the trajectory of funding, funding patterns, and organizations that have received state funding. Although public funding for nonprofits in Canada has been pervasive for decades, there is little empirical evidence on the nature and scope of this funding. This article is based on an innovative new database that provides a comprehensive list of grants from the provincial government to nonprofit organizations between 1960 and 2014. Despite concerns regarding cuts to public funding in recent years, this study finds that there has been an overall increase in funding. However, there has also been a significant shift in funding from women's issues to Aboriginal peoples since the early 2000s.