Sexual Orientation Discrimination and Its Challenges for Nonprofit Managers

In the wake of the recent New Jersey Supreme Court decision, Dale v. Boy Scouts of America and Monmouth Council Boy Scouts (1999), this article examines the issue of sexual orientation discrimination and the challenges it presents nonprofit managers. Because of regional shifts in public opinion, the enactment of nondiscrimination laws at the state and local level, and now a state Supreme Court interpreting state law to include the Boy Scouts of America (BSA) as a “public accommodation,” nonprofit managers may face a more complex legal and moral environment. It is hoped that this article will challenge nonprofit managers to carefully reexamine their membership and personnel policies with respect to lesbians and gay men and begin preparing their organizations for this cultural change.     

Do profits “crowd out” donations,or vice versa? the impact of revenues from sales on donations to local chapters of the American Red Cross

This article examines the relationship between donations to the American Red Cross and the profits, sales, costs, and prices of health and safety classes offered by local chapters. Two important questions are examined: Do profits from sales of services “crowd out” donations to local chapters of the American Red Cross? Do managers respond to changes in donations by changing prices, output, or costs of saleable services? The results suggest that nonprofit managers should pay close attention to the potential impact on donations of any change in the prices charged for saleable goods and services, and that profits, costs, and prices of services are influenced by donations.     

Structure and accountability a study of national nonprofit associations

In the 1990s, the integrity and performance of nonprofit organizations in the United States have come increasingly under attack, and there are new calls to hold nonprofit organizations more accountable for their behavior and performance. This article reports on a study of the organizational structures of national nonprofit associations and asks how these umbrella organizations can help to self-regulate the sector through appropriate checks and balances between the national organization and local affiliates. The authors identify a number of differences in how associations with alternative structures hold local affiliates and national organizations responsible for their performances, and they conclude that structure is an avenue of self-regulation for nonprofit organizations deserving further attention.     

Crisis in leadership or failure to plan?

During the past ten years, succession planning and managing executive transitions have emerged as important issues in the nonprofit sector. Demographers and economists have speculated for years about the potential effects of the retirement of baby boomers. The time has finally arrived: the oldest of the baby boomers are now eligible for retirement. The question that remains is how this trend will affect the nonprofit sector and the communities they serve. This study examines the issues of turnover and succession planning at the executive level, along with career development among young nonprofit professionals in Charlotte, North Carolina. Not only do the findings suggest that the community may very well see a crisis in leadership, but they also illustrate a growing disconnect between executive leaders and young professionals in nonprofit organizations. In addition to struggling with the realities of working in the nonprofit sector (limited benefits, challenging workloads), most young professionals reported that they felt undervalued by older managers and staff, and very few aspire to the position of executive director. Taken together, these findings have important implications for the local community and the broader nonprofit sector.     

The Blog-Mediated Crisis Communication Model: Recommendations for Responding to Influential External Blogs

Practitioners and academics are buzzing about the impact of the blogosphere on public relations practices. Emerging evidence indicates that strategically managing blog-mediated public relations may be especially critical for crisis managers. Yet, no known research provides a comprehensive, theoretically sound approach indicating how crisis managers should engage with the blogosphere. Therefore, this study proposes a new conceptual model to help public relations professionals navigate the evolving blogosphere: the blog-mediated crisis communication model. This model helps crisis managers monitor the blogosphere and respond, when appropriate, to influential bloggers. Future research will test the model in applied contexts, working with corporate, government, and nonprofit organizations.     

The regulatory breadth index: A new tool for the measurement and comparison of state-level charity regulation in the United States

The bulk of charity regulation in the United States occurs at the state level, yet state-level charity regulation remains relatively under-researched within nonprofit scholarship, particularly from a comparative perspective. The complexity and variation in statutory regulation, coupled with the large volume of legal research required to study state-level charity regulation systematically, has impeded scholarly progress toward a better understanding of the US charitable sector. We address this problem by deriving a state-level charity regulatory breadth index (RBI) that will enable nonprofit researchers to contextualize state-level charity research within a broader framework and to incorporate state-level regulation into analyses across states. Policymakers can also benefit from the ability to benchmark their regulatory regimes against their peers.     

Small organization mergers in arts and humanities

This chapter discusses a case study of the merger between two relatively small organizations: a local nonprofit arts council and a public county‐level humanities commission. As this case deviates from other merger analyses that tend to focus on larger health and social service agencies, the chapter examines how well key findings of the nonprofit merger literature apply to mergers of organizations of smaller size and in other fields. Generally, we find that the merger literature so far provides sufficient guidance for nonprofit managers in fields such as the arts, where merger pressures have only now begun to mount.     

The Who,Why, and How of Reinvention in Nonprofit Organizations

Although reinvention of government agencies is being extensively discussed, relatively little is known about the reinvention strategies of nonprofit organizations. This article reports survey results for a randomly selected group of nonprofit organizations from across the United States. We conclude that reinvention is being used as a management tool by nonprofit organizations and that it is affecting day‐to‐day operations. Regardless of how reinvention was implemented, these organizations generally view their reinvention activities as successful for increasing productivity, enhancing services, improving performance, and managing costs.     

Cause-related marketing,fundraising, and environmental nonprofit organizations

This article provides policy guidance to environmental nonprofit organizations, and, secondarily, to other nonprofits, that are considering entering into a cause-related marketing (CRM) alliance. Toward that end, insights into establishing CRM committees, sponsorship development, and regulatory awareness are offered to environmental nonprofit managers. The author argues that strong consumer support for local environmental concerns translates into strategic fundraising opportunities for regional, state, and local environmental organizations that have underutilized CRM in the past.     

Solutions out of context: Examining the transfer of business concepts to nonprofit organizations

Small nonprofit organizations face a dilemma when applying management theories and techniques developed for large, private businesses. Research evidence suggests both benefits and problems associated with application of these techniques. To avoid potential problems, nonprofit managers commonly limit the selection and transfer of business techniques to those that solve specific problems or appear consistent with nonprofit orientations. One consequence is that business solutions often create unintended negative outcomes that are due to contextual differences between the two types of organizations. One possible solution to this dilemma is adoption of bundles, or configurations, of practices that introduce important contextual checks and balances along with the specific tools and techniques. We explore this option through a critical, participatory ethnographic analysis of a small nonprofit service organization.     

Fraud survival in nonprofit organizations: Empirical evidence

This study examines the survival of nonprofit organizations after the discovery of a fraud. Literature on nonprofit fraud claims that fraud has a destructive impact on nonprofit organizations. This study is the first to provide empirical evidence of the impact of fraud on a nonprofit organization's survival, and to analyze the significance of underlying organizational and fraud factors. An analysis of 115 nonprofit organizations experiencing a fraud shows that over one fourth of these organizations did not survive at least 3 years beyond the publication of the fraud, a rate considerably higher than the typical nonprofit failure rate. This article investigates the characteristics of surviving organizations and finds that older and larger organizations are more likely to survive, indicating the liabilities of newness and smallness hold in fraud survival situations. In cases where an executive‐level perpetrator committed the fraud, or where the organization victimized the public, the organization was less likely to survive. These findings suggest nonprofit organizations, particularly those that are new or small, could benefit by implementing governance policies and procedures that are consistent with those employed by more established organizations.     

Employee creativity in U.S. and Lithuanian nonprofit organizations

This article reports findings from a study designed to test a model of creativity in the United States and Lithuania. Five independent variables were derived from the creativity literature: perceived leadership behaviors, organizational norms for creativity, group climate, job characteristics, and motivational orientation. They were used to predict creativity in a sample of 201 employees of nonprofit organizations. The results differed for the two countries. Interestingly, while in the United States organizational norms for creativity, extrinsic motivation, and hierarchical level were related to employee creativity, in Lithuania intrinsic motivation and education constituted major predictors of creativity. Based on the study results, I suggest practical implications for nonprofit managers on how to capitalize on their employees' creativity.     

An expanded theory of pluralistic interactions in voluntary nonprofit organizations

Demographic trends suggest a more culturally diverse society, yet research focusing specifically on the management of this diversity in nonprofit organizations is at a nascent stage. Furthermore, traditional ways of conceptualizing cultural diversity in U.S. society are becoming outmoded. Thus, nonprofit managers and leaders can benefit from new ways of thinking about and managing diversity. In this article, we extend our proposed representationinteraction model of diversity in voluntaristic nonprofits (Weisinger and Salipante, 2005) by more closely examining the interaction prong of our model in order to provide a more grounded understanding of this new approach to increasing pluralism. The expanded model that we discuss here is founded on interaction processes: in‐group identity and recategorization. This study enables us to transform our grounded theory into a theory of practices that leaders of voluntaristic organizations can directly apply. We present findings from a field study of a national nonprofit organization and discuss implications for practice and research.     

U.S. nonprofit organizations' demand for temporary foreign professionals

This article examines the demand by nonprofits in the United States for foreign professionals to fill a variety of specialized and managerial positions on a temporary basis. Our study contributes to understanding the demand side of the trend toward a more contingent workforce. We test predictors of nonprofit employers' pursuit of foreign labor for professional expertise and show an association between strategy to insource foreign labor and organizational resource level, mission, occupational need, and wage offer. Our findings suggest that government visa policies and practices affect labor pools for nonprofit organizations. Given that our study reveals varied interest by nonprofits in pursuing temporary foreign professionals, we end with a brief review and discussion of how the use of temporary and foreign professionals may influence the dynamics of nonprofit organizations and suggest additional research questions.     

The governance of nonprofit organizations: Law and public policy

Who should have the right to set the objectives of nonprofit organizations, hire their managers, set compensation standards, and in general control these organizations? Current law and public policy do not provide answers to these questions. Often, nonprofit organizations are controlled by managers and members of the boards of directors or trustees (many of whom are appointed by management). The goals of these individuals may not best serve the interests of those who support the operation of nonprofit organizations. This article proposes a legal and policy framework for empowering consumers, donors, and sponsors—those who have an economic demand for the nonprofit form of organization. The framework establishes a formal status of membership, accords standing in the court of law to members, enhances direct information dissemination by nonprofit organizations, and empowers state-sponsored agencies to support and oversee nonprofit organizations.     

The Effects of United Way Membership on Employee Pay in Nonprofit Organizations

This research investigates the relationship between United Way membership and the compensation level of employees in nonprofit organizations. This study is based on questionnaires completed by 1,811 employees from sixty‐nine nonprofit agencies in a large metropolitan area. Managerial capitalism, agency theory, and United Way funding and governance roles were used to develop the hypotheses. We found that employees of organizations belonging to the United Way receive pay premiums, suggesting that the United Way member agencies are higher‐quality agencies that pay their employees higher wages.     

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 role of county‐based funders in sustaining nonprofits within rural and urbanized counties

Social service nonprofit organizations in the United States originally relied on private donations and charitable events to sustain their operations. Using case studies, this article examines the role played by local officials in the thirty‐year survival of certain Indiana Youth Services Bureaus (YSBs) and highlights the salient factors that influenced the viability of some nonprofit organizations over the others.     

Corporate funding of the arts in a turbulent environment

Focusing on funding in culture and the arts, the author identifies a distinctive logic of company support for nonprofit organizations. Business giving is increasingly disciplined around company objectives, giving levels are driven by pretax earnings, and giving decisions are the province of managers who draw advice less from the arts community or public agencies than from other companies. At best, turbulence in government funding has modest effect on corporate support. In turn, change in corporate support has little impact on public backing. The separate logics of corporate and government support imply separate and distinctive long-term development strategies for nonprofit organizations.     

Agency Problems between Managers and Employees in Nonprofit Organizations: A Discrete Choice Experiment

Most principal–agent literature of nonprofit organizations has focused on the relationship between board members and managers. However, in addition to the role as an agent of the board, the manager also performs a role as principal with respect to the nonprofit employees. By using a discrete choice experiment, we identify the objectives of managers and employees in nonprofit organizations and assess the presence of agency problems in this relationship. Our sample consists of 76 headmasters, 161 teachers, and 39 administrative employees in 74 secondary nonprofit schools in Belgium. We find that the six objectives set out in the experiment play an important role for both headmasters and subordinate staff. However, the results also indicate that some of these objectives are significantly more important for the headmasters. In sum, our results suggest that agency theory and stewardship theory are not necessarily in conflict with each other but can be combined into a more general governance framework for nonprofit organizations. Consequently, we argue that incentive structures that incorporate different types of objectives can facilitate the recruitment and retention of employees in nonprofit organizations.