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.     

External environmental change and transparency in grassroots organizations in China

As the nonprofit sector emerges in China, so too do the concerns about nonprofit transparency. In response to calls for increased nonprofit information disclosure and the lack of related research, this study examines changes in transparency of Chinese grassroots nonprofit organizations. Using the first national Survey of Transparency on Grassroots Organizations (2013–2015), this study finds that Chinese grassroots nonprofit transparency has increased in the past few years. Applying resource dependence theory in China‐specific social contexts, this study highlights the importance of external resource to nonprofit transparency. These findings contribute empirical evidence to the nascent literature on nonprofit transparency and provide implications for enhancing nonprofit transparency in China and beyond.     

Toward the Importance of Nonprofit Brand Equity

Various brand evaluation approaches assess the value and equity of for‐profit brands; accordant approaches for nonprofit brands, however, have been limited, and there is disagreement on what makes up a strong brand in the nonprofit sector. In response, this article provides insights into the conceptualization and operationalization of stakeholder‐based nonprofit brand equity and derives an initial measurement index. We conceptualize nonprofit brand equity as having three dimensions—nonprofit brand awareness, nonprofit brand trust, and nonprofit brand commitment—thereby empirically investigating trust in nonprofit brand equity building for the first time. The methodological procedure for building the index is based on partial least squares path modeling, and we draw on a sample of forty brands (N = 3,617 brand evaluations) identified as some of the best‐known nonprofit brands in Germany. Applying the index yields some of the strongest German nonprofit brands; for example, German Red Cross has by far the highest value of brand equity, followed by Aktion Mensch and UNICEF. The nonprofit brand equity index provides the basis for nonprofit managers to compare their brands’ performance over time and develop accordant branding strategies; it can be also used by organizations from other countries.     

What Influences the Growth of the Chinese Nonprofit Sector: A Prefecture-Level Study

The nonprofit sector in China has experienced unprecedented growth in its scope and impact over the past four decades. Despite the significant growth, the distribution of nonprofit activities across localities is not well understood. This study combines administrative and census data to examine the size of the Chinese nonprofit sector across 334 prefectures. The study demonstrates a significant variation in nonprofit sector size across prefectures. The study further shows that population heterogeneity, government social spending, and government fragmentation have positive effects on boosting nonprofit sector size in a prefecture. Although diverse service needs affect the growth of the Chinese nonprofit sector, government activities play a more important role in mobilizing nonprofit activities and driving nonprofit sector growth.     

What Accounts for the Variations in Nonprofit Growth? A Cross-National Panel Study

Previous studies of nonprofit growth have lamented the lack of cross-national longitudinal data measuring the size of the nonprofit sector across countries, which has made it difficult to assess the current state of knowledge about the nonprofit sector beyond national boundaries. Recent progress in measuring nonprofit growth using panel studies or cross-national data has compensated for the limitations of the existing research, but even the recent data are either country specific or cross sectional in nature. This study takes on the challenge of supplementing the current research by measuring nonprofit growth using internationally comparable longitudinal data. Specifically, this study focuses on whether certain key indicators of the overall state of the economy can be used to predict and explain the size of nonprofit sectors cross-nationally. The overall state of the economy has considerable relevance for nonprofit growth, as it influences the levels of government funding and private philanthropy that benefit the nonprofit sector. The results indicate that the existing theories about the nonprofit sector account for variations in nonprofit growth but are limited in their explanations of the underlying dynamics of such variations beyond national boundaries. Social origins theory is a useful addition that helps to explain cross-national variations in nonprofit growth. Importantly, the interplay among the government, private philanthropy, and the nonprofit sector is dynamic, and its effect on economic indicators varies across nonprofit regime types when sociodemographic variables are controlled.     

How does a board of directors influence within‐ and cross‐sector nonprofit collaboration?

Board members play a significant, yet largely unexamined, role in nonprofit collaboration. Processes, such as finding prospective partners, creating common ground with a partner, and establishing appropriate collaborative governance implicate nonprofit board members. In contrast to the scholarship of the role of interlocking directorates as potential networks for nonprofit collaboration, this paper examines the role of board members' social and human capital on nonprofit collaboration with other nonprofits, businesses, and government agencies. Drawing on online survey data from 636 nonprofit organizations, this paper finds that board social capital—but not board human capital—is positively related to the presence and number of within‐sector and cross‐sector nonprofit collaboration. However, board human capital enhances nonprofit‐government collaboration, when board social capital is also high. The results provide a novel perspective in nonprofit collaboration and board management research.     

The anticipated growth of nonprofit unionism

Although unions are not typically associated with nonprofit organizations, many nonprofit agencies have unionized work forces. The author predicts that there will be an increase in the number of unions representing nonprofit employees. Parallels are drawn between the evolution of unions in the public and nonprofit sectors.     

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.     

Profits and incentive compensation in nonprofit firms

Incentive contracts based on profit sharing, cost reduction, or other measures of performance no longer need to endanger a nonprofit firm's tax exemption; such measures have been urged for adoption in the nonprofit sector. However, the nonprofit differs from the for-profit sector in that contracts have side effects on the solicitation and offering of donations and on the character of those who choose to work in the nonprofit sector. In addition, it is more difficult in the nonprofit sector to obtain an appropriate output measure for use in calculating bonuses.     

A Review of Models for Measuring Organizational Effectiveness Among For‐Profit and Nonprofit Organizations

Induced by unprecedented growth, invasion of for‐profit organizations in the nonprofit domain, and high‐profile cases of mismanagement in the nonprofit sector, a recent surge in the literature suggests ample opportunities for research to compare the organizational effectiveness of for‐profit and nonprofit organizations. This article presents a literature review of nonprofit organizational effectiveness from which four models of organizational effectiveness are selected. These models are discussed and analyzed because they apply to both for‐profit and nonprofit organizations.     

Sensegiving,Leadership, and Nonprofit Crises: How Nonprofit Leaders Make and Give Sense to Organizational Crisis

This study examined how 43 nonprofit leaders across 15 U.S. states make sense of organizational crises in nonprofit contexts, as well as what they think effective leadership is during crises. Findings revealed perceived nonprofit organizational crises emerging from disasters, disruption of mission delivery, internal stakeholder challenges, and unanticipated occurrences, while six major characteristics of effective crisis leadership emerged including being a team player, being strategic, being transparent with stakeholders, being quick to respond, being self-composed, and being prepared. Comparisons to previous empirical investigations of nonprofit leadership and crisis response yielded additional insights into effective crisis leader sensemaking in nonprofit contexts—most notably that nonprofit crisis leaders leverage sensegiving frameworks of instrumental knowledge, normalcy, and dynamic learning. Further analysis demonstrated these diagnostic and prognostic sensegiving activities to be more clearly observed than motivational sensegiving activities across crisis leaders in nonprofit contexts.     

Managerial Control and Strategy in Nonprofit Organizations: Doing the Right Things for the Wrong Reasons?

This article presents the second stage of a study that engages with the debate that has occurred within the nonprofit literature about the propensity and relative merits of nonprofit organizations adopting for‐profit approaches to management. Specifically, this qualitative investigation examines the ways in which nonprofit organizations use management control when implementing their chosen strategies. Although this topic has been the subject of considerable attention in the management accounting research, it has rarely been explored within a nonprofit context. This is surprising not only because of the considerable social and economic impact of this sector, but also because of the apparent trend toward sectoral convergence in many structural and processual respects, including strategic behaviors and approaches to control. Based on interviews with CEOs and senior executives in thirty‐two Australian nonprofit organizations, we find that the relationship between strategy and control in nonprofit organizations is similar to that in for‐profit organizations, but quite different reasons underlie nonprofit organizations' exercising of management control.     

Embedded Systems: The Case of HIV/AIDS Nonprofit Organizations in New York City

In this paper the notion of an embedded system is developed as an analytic model to examine how state–nonprofit relations develop and become differentiated, using the case of HIV/AIDS nonprofit organizations. Drawing on extensive fieldwork among three prominent HIV/AIDS nonprofit organizations in New York City, this paper shows how the kinds of relationships these nonprofit organizations are likely to form with state agencies are based on their embeddedness in the state–nonprofit system of relations. Three forms of embeddedness are distinguished according to the type and regularity of state–nonprofit contact—direct, outsider, and mediating. Importantly, it is shown how the configuration of relations within which an organization is embedded determines many of the organization's constraints and opportunities.     

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.     

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.     

Boards of directors in nonprofit organizations do they follow a life-cycle model?

In this study the authors used data from a survey of Canadian nonprofit organizations to empirically test hypotheses derived from models of nonprofit board “life cycles.” The authors suggest that while formal structural elements of board behavior change in the manner suggested by life-cycle models, the more enacted or behavioral aspects of nonprofit boards do not. The data further suggest caution in the use of life-cycle or age-dependent models to either explain or guide nonprofit board behavior.     

The Impact of Board Diversity and Expertise on Nonprofit Performance

This study examined the impact of board of director characteristics on nonprofit performance. Using data collected through a survey of nonprofit colleges and universities, the author provides evidence that specific board member characteristics are vital in shaping the financial and nonfinancial success of nonprofit institutions of higher education. Results indicate that both board member diversity and expertise are associated with better‐performing organizations. This work makes important initial forays into the relationships between board of director qualities and nonprofit performance. Although limited by the relatively small sample of colleges and universities, this study is unique in its ability to analyze nonprofit boards and both financial and nonfinancial performance measures.     

The State of Nonprofit Finance Research across Disciplines

The single largest determinant of nonprofit organization success is financial sustainability. Yet the study of nonprofit finance spans multiple disciplines, creating barriers for new researchers to the field. To address this challenge, this study addresses three primary questions across disciplines: How much nonprofit finance research has been conducted, what is the content of this research, and what is the impact of this research? This systematic literature search revealed 619 nonprofit finance research articles in twenty‐seven journals published in the disciplines of nonprofit management, public administration, accounting, and economics and finance between 1970 and 2014. The vast majority (415 of the 619 identified articles) were published in nonprofit management journals (either Nonprofit and Voluntary Sector Quarterly or Nonprofit Management & Leadership ). Across disciplines, there is an emphasis on determinants of giving, but we note some variation; for example, there is more emphasis on government funding in journals outside of nonprofit management. The impact of this research is significant, with more than 32,630 citations, or an average of 52.71 times per article. The resulting bibliography may be helpful to researchers seeking to discern the status of extant nonprofit finance research across multiple disciplines.     

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.     

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.