Foundations and innovation in the nonprofit sector

Using a sample of 17 foundations that are at the forefront of encouraging innovation this study explored foundations' motivations behind funding innovation, their perceived ability to impact the levels of innovation in nonprofit organizations, and strategies that foundations are using or can use to encourage innovation in nonprofit organizations. The results showed that among the major motives behind funding innovation were leveraging the capital, honoring the foundations' core identity (mission and values), and desiring to encourage innovation in nonprofit organizations. Five strategies/mechanisms that foundations are using/can use to encourage innovation in nonprofit organizations were identified: (a) offering innovation awards/grants as catalysts for innovation, (b) providing risk capital and supporting early stage idea development, (c) educating other foundations on the value of innovation and serving in a convener role, (d) serving as thought leaders, and (e) increasing nonprofit organizations' capacity for innovation. Implications for practice are discussed along with recommendations for future research.     

Public and private employment over the business cycle: A ratchet theory of government growth

Previous researchers have attempted to explain the growth in the size of government over time. Some have observed a “ratchet” effect and have attributed these observed jumps in the relative size of government to ideological shifts in response to severe crises. We explain these observed ratchets as the consequence of asymmetries in the response of government employment to the business cycle. A public-choice oriented model of the employment response to the cycle is developed and applied to state and local government employment data. The data confirm the presence of ratchet effects that correspond to the business cycle. Moreover, virtually all of the growth in the ratio of state and local government employment to private employment has occurred during recessions. The authors greatly appreciate the extensive comments of Randall 0. Holcombe and the late Richard McHugh on an earlier draft of this paper. Don Bellantés work on this paper was aided by a grant from the John M. Olin Institute for Employment Practice and Policy.     

The growth of the nonprofit sector in the 1980s: Facts and interpretation

The nonprofit sector was the growth sector of the 1980s. This is the conclusion reached from detailed examination of the growth trends of major industry groups in New York State in the years 1981 through 1987. The analysis in this article suggests that the growth of the nonprofit sector was due primarily to the strong orientation of the economy toward services, where the nonprofit sector has traditionally had an important presence. Within service industries as a whole, the nonprofit and for-profit sectors grew at comparable rates; however, nonprofit growth was concentrated in semipublic services and in services where information is often difficult for consumers to acquire and understand, while the for-profit sector grew in simpler and more privately oriented services. The analysis shows that the nonprofit sector filled much of the gap left by reduced or stagnating government services. However, the growth of the nonprofit sector may be difficult to sustain in the future if sufficient entrepreneurial talent and other resources are not forthcoming.     

Multiple business ownership in the farm sector: assessing the enterprise and employment contributions of farmers in Cambridgeshire

Multiple business ownership has become an important theme within the small firms research literature. While early studies emphasised its role in reducing business risk, more recently portfolio entrepreneurship has been recognised as an important growth strategy, particularly in sectors where economies of scale can be achieved at a relatively low level. Research studies specifically examining multiple business ownership are still scarce, but the parallels between portfolio entrepreneurship in non-farm sectors and farm pluriactivity have been noted. Although pluriactivity has been subject to extensive investigation in recent years, analysis has generally focused on farm-centred diversification, rather than the wider entrepreneurial activities of the farmer. Using a survey of nearly 300 farm owners in Cambridgeshire, this exploratory study analyses the incidence of portfolio entrepreneurship in the farm sector and assesses its contribution to enterprise and employment creation. The results demonstrate that a core of farmers have multiple business interests and that these additional business activities make a substantial contribution to both numbers of enterprises and employment creation. While previous studies of pluriactivity have generally used the farm business as the main unit of analysis, it is argued that including the wider business activities of the farm owner enables a more precise estimation of the total contribution of farmers to rural economic development.     

Variation in part‐time job quality within the nonprofit human service sector

This article extends the growing literature on the quality of part‐time employment to the domain of nonprofit human services, specifically grassroots organizations in which paid work is itself a relatively new reality. It addresses three central questions: How do part‐time and full‐time workers differ in their personal and household characteristics? How do part‐time jobs differ in access to employment benefits from their full‐time counterparts; and finally, How does benefits access vary among part‐time job titles? These lines of inquiry are examined using data from the populations of nonprofit domestic violence programs and their employees in a large midwestern metropolitan area. Analyses of worker‐level data reveal that part‐time workers in these settings disproportionately live with children, are in committed relationships, and report a strong preference for employment that facilitates work‐life balance; they are also less likely to be primary household wage earners. Analyses at the level of jobs suggest that employment benefits extended to part‐time jobs are minimal compared to their full‐time equivalents, but there are also striking variations among different part‐time titles. The results offer insights into the nature of part‐time work in these nonprofit human service settings and potential challenges for effective management.     

Building and valuing global brands in the nonprofit sector

Global nonprofit brands are the world's new “super brands” (Wootliff and Deri, 2001). Nonprofit organizations command unprecedented levels of trust, and nonprofit brand valuations are on par with major international corporations. Leaders and managers of nonprofits face new challenges in the stewardship of their brands. Based on current thinking in nonprofit management and detailed interviews with close to one hundred executives of ten international nonprofit organizations, this article draws strategic lessons on brand building and brand valuation activities of international nonprofits. The multiple roles and stakeholders that global nonprofit brands must address make nonprofit brand building complex and challenging. In particular, differences between advocacy and relief organizations must be explained. Despite the complexity, international nonprofit organizations may have an advantage over for‐profits in leveraging public trust and brand communication. Advocacy organizations in particular successfully link brand and cause to good effect. The valuation of nonprofit brands is a new strategic challenge with significant appeal, but also significant concerns for international nonprofits. In addition to providing nonprofit leaders and managers with a better understanding of brandbuilding activities, imperatives, and best practices in the field, this article outlines the opportunities and threats associated with the valuation of nonprofit brands.     

The British are not coming!: UK higher education and the nonprofit sector

The rationale for the growth of nonprofit management education in the United States has recently been charted by O'Neill (2005). Ten years previously, the United States and the United Kingdom were at similar levels of development. By 2006 the parallel lines had been broken. Why has nonprofit management education expanded in the United States while provision of graduate education for the voluntary sector in the United Kingdom has stood still? This article explores the factors that have prevented parallel growth in education provision. It argues that the university as an institution, both in terms of its nature and its power structures, is one of those factors. It presents the story of the closing of the world's first voluntary sector course at the London School of Economics and concludes with reflection on the likely future of voluntary sector management education provision in the United Kingdom.     

Exploring the link between government funding and efficiency in nonprofit colleges

Previous literature has suggested that federal funding can hinder the efficiency of nonprofit organizations, but this has yet not been empirically tested. This study used a two‐stage data envelopment analysis (DEA) model to measure the efficiency of a set of private nonprofit teaching‐oriented colleges, then estimate the impact of federal and state funding on organizational efficiency. The findings indicate that, on average, increases in neither state nor federal funding effect efficiency of nonprofit colleges. Increasing state funding negatively impacted the efficiency of public colleges (N = 799). This study suggests that the challenges for nonprofits that accompany government funding may not rise to a quantifiable negative effect on efficiency.     

Managers as knowledge generators: The nature of practitioner‐scholar research in the nonprofit sector

As nonprofit management education develops, it has the opportunity to consider new premises concerning managers' roles. In the design and practice of traditional management education, managers are assumed to be the ultimate users of knowledge. Less attention is given to educating managers to be knowledge generators who combine intimate understanding of issues, problems, and settings with established theory and methods. Based on a discussion of three research projects undertaken in nonprofit settings by participants in a doctoral program for advanced practitioners at the Weatherhead School of Management at Case Western Reserve University, we describe seven dimensions of practitioner‐scholar inquiry. The pattern of practitioner‐scholar research that emerges from these research projects is contrasted with two other modes of knowledge production. Implications for practitioner‐scholar inquiry and for the education of practitioner‐scholars in the nonprofit sector are discussed.     

Indicators of information and communication technology adoption in the nonprofit sector: Changes between 2000 and 2004

With the knowledge that information and communication technology (ICT) has brought about significant changes in the structure and functioning of businesses, this research provides information about the changes that have occurred in ICT adoption in nonprofit organizations between 2000 and 2004. Using archival data, it specifically investigates various indicators of ICT adoption and adoption readiness factors. Results illustrate that nonprofit organizations are beginning to position themselves to take advantage of the opportunities provided by ICT adoption.     

The strategic restructuring of nonprofit associations: An exploratory study

In the past decade, many voluntary associations have reported experiencing tension and frustration in the relationships between central offices and local affiliates. The current challenge is how to maintain cohesion of the association and the utility of the central office while accommodating the desire of affiliates for autonomy. Based on an eighteen-month exploratory study of the evolution of two associations, this article explores these tensions and offers five propositions for the effective restructuring of the leadership and governance of associations over time.     

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.     

The double-edged sword of social service contracting: public accountability versus nonprofit autonomy

The increased role of government contracts in the funding of nonprofits has heightened tensions as governments seek accountability and nonprofits seek to preserve autonomy. Considering both sides of the contract market this article suggests that the threat of government funding is exaggerated. Nonprofits are attractive contractor options because of their experience and trustworthiness. Governments should recognize that excessive intrusions limit the advantages of the nonprofit sector. At the same time, nonprofits should be conscious of the implications of public funding, just as they must be of other sources of funding.