NPO Financial Statement Quality: An Empirical Analysis Based on Benford’s Law

In order to assess the accuracy of the figures reported in NPOs’ financial statements, I perform a digital analysis on Belgian non-profit organizations’ financial statements for accounting years 2007 up to 2012. Specifically, I compare observed frequencies for digits in the second-from-the-left position with expected frequencies based on Benford’s Law. Results based on the full sample indicate that observed frequencies strongly conform to Benford’s Law (and thus suggest a high degree of accuracy of the figures reported in NPOs’ financial statements). Nevertheless, I note statistically significant deviations from Benford’s Law (both for the entire distribution and at the individual digit level). The largest deviation is noted for zeroes in the second position (i.e., a significantly positive deviation), which can be explained based on humans’ reliance upon so-called cognitive reference points. Considering different sub-samples, I note that observed deviations from Benford’s Law are largest for the smallest non-profits and those non-profits that rely most heavily on grants and/or donations.     

Red Cross Society in Imperial China, 1904–1912: A Historical Analysis

The Red Cross Society was introduced to China in the 1900s, when the nation was under the authoritarian reign of Qing dynasty. Famines and rebellions, along with the invasion of foreign military forces, created tremendous humanitarian crises that the corrupted imperial government was incapable to address. The Red Cross model was found to be a pragmatic solution by Chinese philanthropists. Using archived press releases, correspondences, and government statements, the study reconstructs the founding process of the first Chinese Red Cross organization from 1904 to 1912. The analysis reveals that the organization reflected the congruent interest of the imperial court and social elites in preserving the sovereignty and was therefore promoted by key players from both political and civil spheres. The trajectory of Red Cross movement in imperial China supports the synergism perspective of institutional theories. It demonstrates how micro-level factors such as leadership ties and alliances contribute to the interdependence of public and private sectors and facilitate the transformation of traditional charity to modern philanthropy.     

Trust,Social Capital,and the Coordination of Relationships Between the Members of Cooperatives: A Comparison Between Member-Focused Cooperatives and Third-Party-Focused Cooperatives

In recent years, nonprofit scholars have increasingly studied the phenomenon of social enterprises which has become a generic term describing a wider reorientation among third sector organizations. The emergence of social enterprises has also led to a dynamic of hybridization and broadening in the cooperative sector, similar to an earlier dynamic of “economization”, but this time on the other end of the organizational spectrum. This paper aims at developing a fine-grained conceptual understanding of how this organizational dynamic is shaped in terms of member coordination, thus contributing to a more comprehensive theoretical understanding of different organizational forms of cooperatives. Specifically, to highlight the difference to traditional member-focused cooperatives, the paper introduces the term third-party-focused cooperatives for those social enterprises which emphasize economic goals as well as control and ownership by a particular community (typically place-based). The key result of the paper is that with the shift from member- to community-focus in cooperatives, the main coordination mechanism becomes one of norm-based trust on the basis of generalized reciprocity. In contrast to traditional maxim-based trust member coordination on the basis of relation-specific reciprocity, this enables third-party-focused cooperatives to mobilize bridging and linking social capital, facilitating collective action aimed towards the community interest. The findings suggest that this identity shift requires a mutual re-positioning between the cooperative and the nonprofit sector, in terms of umbrellas as well as regulatory and legislative bodies.     

Participation and Local Governance Outcomes: Evidence from Ukraine

As participatory governance approaches to local development get adopted also in transition countries, one of the key questions is how participation actually impacts local governance outcomes. This study examines the link between non-electoral participation and different public goods outcomes in rural Ukraine along with identifying the role of community-based organizations (CBOs). Using a unique survey data from Ukraine, I approach these questions empirically explicitly distinguishing between different public goods outcomes. I find that participation appears to be positively associated with local school and water supply outcomes. In addition, CBOs are found to be associated with better quality of water supply systems motivating a discussion about establishment of service cooperatives for water supply as a functional local governance arrangement.     

Neighborhood Association Participation and Formal Volunteering in Japan

We examine the effect of participation in neighborhood association (NHA) activities on volunteering using the 2010 Japanese General Social Survey data. We find that controlling for established predictors of formal volunteering such as demographic and socioeconomic variables, NHA association participation, either operationalized as a dichotomous or interval variable, positively predicts volunteering. Moreover, some of the established predictors of volunteering (e.g., marital status and associational membership) are useful in predicting NHA participation. Our results indicate a complementary relationship between volunteering and NHA participation. We discuss implications of our study for future research on community volunteering in Japan and elsewhere.     

Open Innovation in Nonprofit Sports Clubs

This research paper investigates open innovation—that is, the use of purposive inflows and outflows of knowledge in order to innovate—in the context of nonprofit sports clubs, and is based on the content analysis of semi-structured interviews held with representatives of eleven sports clubs. The study develops a framework that describes open innovation activities in nonprofit sports clubs as facets of four superordinate dimensions, namely permeability of the club’s boundary, application and implementation of open innovation practices, managerial competencies, and the environmental and organizational surroundings in which the club operates. Within these dimensions, subordinate facets such as commitment of the club’s president and the strategic use of coopetitive environments explain how and why sports clubs are successful at implementing innovations and how their nonprofit status (e.g., volunteer work) contributes to (or is in conflict with) innovation. The findings provide implications for nonprofit organizations inside and outside the sports sector.     

The Participation of Civil Society Organizations in Public Policies in Latin America

Throughout Latin America, the relationship between government and civil society organizations (CSOs) has been characterized by opposition, substitution, and submission; and, the incipient path to cooperation is barely noticeable. For their part, participatory public policies make sense within a theory of democratic governance. Democratic governance seeks two propositions: (a) participation from other social actors will give rise to more efficient government action; and (b) citizen support will emerge from the said government action. This paper criticizes the current relationships between the governments and CSOs in this region. In addition, it explores the potential strategies that could be adopted were there a cooperation between these two entities. The paper is supported by theoretical literature as well as by a revision of some cases of participatory public policies that are currently active in the region. The paper proposes that the strategies of opposition to government and government substitution have to be abandoned in this region. The paper focuses on civil organizations (CSOs). It is true that they do not constitute the entirety of civil society; however, they are frequently the most organized compared with other civic actors, such as social movements, families, and individual initiatives. CSOs form only a part of the diversity known as civil society; however, they significantly contribute to the discussion about the public good, and very often they participate in providing such goods. The future of participatory democracy in Latin America is related to our ability to achieve a more complete participation of CSOs in the entire process of participatory public policies—from the formation of public agendas to their design, implementation, and evaluation.     

Agents for Change or Conflict?

In today’s Latin America, governments implementing public policies for development and against poverty and inequality meet with social movements that engage in practices for social change, poverty reduction, and empowering. In this context, we analyze the interplay between both processes, describing its conflicts in three specific dimensions: the material, the democratic, and the environmental. Social movements are permanently contesting and challenging public policy when they autonomously appropriate public policy resources; yet, governments respond with criminalization and cooptation strategies. In a setting where social conflict takes place in response to existing poverty and inequality levels, movements challenge development and poverty reduction projects of an ‘assistentialist’ and extractivist nature, and propose an integral understanding of development and the emergence of new relationships among individuals, society, and the environment.     

NGO Networks,the Diffusion and Adaptation of NGO Managerialism,and NGO Legitimacy in Latin America

Nongovernmental organization (NGO) networks have become key instruments used by NGOs in Latin America. Because these networks have important roles to play in advocating for the sector, earning public support, and improving the provision of public goods and services, understanding these networks is important to understanding the NGO sector more broadly. The article examines how NGO networks use collective texts to diffuse and adapt managerial practices. NGO networks use elements of managerialism and their adaptations to signal quality, secure recognition in social development, identify strengths and weaknesses of the sector, and define civil society in order to garner sector legitimacy. While looking at managerialism from a critical perspective, the article finds that understanding NGOs networks and the diffusion and adaption of NGO practices can further pinpoint effective sources of sector legitimacy and help to strengthen the sector’s role in social development.