Resource dependence patterns, goal change, and social value in nonprofit organizations: does goal change matter in nonprofit management?

2018 ◽  
Vol 86 (2) ◽  
pp. 368-387 ◽  
Author(s):  
JungWook Seo
Keyword(s):  
Nonprofit Organizations ◽  
Resource Dependence ◽  
Nonprofit Sector ◽  
Social Value ◽  
Financial Resources ◽  
High Resource ◽  
Competitive Environments ◽  
Negative Effect ◽  
Resource Diversity ◽  
Goal Change

Resource acquisition is an important factor for the survival and success of nonprofit organizations. Nonprofit organizations are not free from the demands of potential funders and they experience involuntary goal changes in competitive environments. This article investigates the relationships among resource dependence patterns (resource dependency, resource competitiveness, and resource diversity), goal change, and social value in nonprofit organizations. The findings suggest that competition for financial resources (resource competitiveness) is positively associated with goal change in nonprofit organizations. Goal change in an environment of high resource competitiveness has a negative effect on social value. On the other hand, the empirical findings show that a diversified or balanced revenue structure (high resource diversity) helps nonprofit organizations to maintain their social value. Points for practitioners This study shows that frequent goal change can damage social value in the nonprofit sector. This can be interpreted as indicating that the involvement of external stakeholders makes it difficult to attain social value in that the demands of potential donors are a major cause of goal change in nonprofit organizations. To alleviate this problem, a nonprofit organization should try to reduce its dependency on one or a few financial resources for its autonomy and social value. In the mid- and long-term view, nonprofit organizations should enhance their financial independence in order to ensure their survival and success, as well as to improve their social value.

scholarly journals Increasing the Size of the Pie: The Impact of Crowding on Nonprofit Sector Resources

2017 ◽  
Vol 8 (3) ◽  
pp. 211-235 ◽  
Author(s):  
Erynn Beaton ◽  
Hyunseok Hwang
Keyword(s):  
Nonprofit Organizations ◽  
Fixed Effects ◽  
Free Market ◽  
Nonprofit Sector ◽  
Financial Resources ◽  
Limited Resources ◽  
Barriers To Entry ◽  
Human Services Organizations ◽  
Nonprofit Competition ◽  
The Impact

AbstractThe number of nonprofit organizations is rapidly increasing, which has led nonprofit practitioners to complain of funding scarcity, nonprofit scholars to closely study nonprofit competition, and policymakers to consider increasing nonprofit barriers to entry. Underlying each of these perspectives is an assumption of limited financial resources. We empirically examine this assumption using county-level panel data on nonprofit human services organizations from the National Center for Charitable Statistics. Contrary to the limited resources assumption, our fixed-effects models show that increasing nonprofit density, at its current levels, has the effect of increasing sector financial resources in each county. We suggest that these findings prompt a tradeoff for policymakers. A sector with free market entry results in a nonprofit sector with more, smaller nonprofits, but such a sector may have the capacity to serve more people because it has more total sector financial resources. Conversely, a sector with higher barriers to entry would translate to a sector with fewer, larger nonprofits with less overall capacity due to fewer sector financial resources.

A Field Too Crowded? How Measures of Market Structure Shape Nonprofit Fiscal Health

2018 ◽  
Vol 47 (3) ◽  
pp. 453-473 ◽  
Author(s):  
Laurie E. Paarlberg ◽  
Seung-Ho An ◽  
Rebecca Nesbit ◽  
Robert K. Christensen ◽  
Justin Bullock
Keyword(s):  
Market Structure ◽  
Nonprofit Organizations ◽  
Market Competition ◽  
Nonprofit Sector ◽  
Curvilinear Relationship ◽  
Fiscal Health ◽  
Negative Effect ◽  
Positive Effect ◽  
Sector Data

This article explores how various dimensions of market structure, often used to measure organizational crowding, affect the fiscal health of nonprofit organizations. Using 2011 National Center for Charitable Statistics (NCCS) nonprofit sector data, our findings generally support population ecology’s model of a curvilinear relationship between density and days of spending. However, we also find that single dimensions of market structure do not fully capture the effects of market competition. Increasing density has a negative effect on the fiscal health of organizations in markets in which resources are more evenly distributed among actors, whereas increasing density of organizations has a positive effect on organizational fiscal health in markets in which resources are less evenly distributed among actors. These results are sensitive to different specifications of fiscal health and field of nonprofit activity.

scholarly journals How Competition and Specialization Shape Nonprofit Engagement in Policy Advocacy

2014 ◽  
Vol 5 (2) ◽  
pp. 307-333 ◽  
Author(s):  
Heather MacIndoe
Keyword(s):  
Nonprofit Organizations ◽  
Nonprofit Sector ◽  
Policy Advocacy ◽  
Uncertain Environments ◽  
Organizational Sociology ◽  
Positive Effects ◽  
Competitive Environments ◽  
Policy Environments ◽  
The Relationship ◽  
Competition For Resources

AbstractThis paper extends research on nonprofit advocacy by exploring the relationship between competition, nonprofit mission, and policy advocacy. Previous research indicates that charitable nonprofits serving specialized populations, such as immigrants or veterans, often engage in policy advocacy. This could benefit marginalized populations whose interests are articulated by nonprofit organizations. However, population ecology theory in organizational sociology predicts that generalist organizations will outperform specialists in uncertain environments. At the very times when nonprofits serving specialized constituencies should focus on advocacy the most – for example to protect funding in competitive policy environments – they may be least able to do so. Drawing on survey data from charitable nonprofits in Boston, Massachusetts, we find that competition and specialization have direct positive effects on nonprofit engagement in advocacy and the use of formal and grassroots tactics. However, the effect of competition is weakened by nonprofit specialization. Nonprofit specialists that report higher competition for resources are less likely to participate in policy advocacy and use fewer formal and grassroots tactics. Specialists that report higher service delivery competition use fewer formal advocacy tactics. These findings suggest that we should be cautious in looking to the nonprofit sector, particularly organizations serving specialized populations, to provide constituent representation through policy advocacy in competitive environments.

Economic Way of Thought and Legislationon Nonprofit Organizations

2012 ◽  
pp. 48-63
Author(s):  
L. Yakobson
Keyword(s):  
Nonprofit Organizations ◽  
Empirical Data ◽  
Nonprofit Sector ◽  
Social Medium ◽  
The State ◽  
Rapid Changes ◽  
Comparative Advantages ◽  
Essential Prerequisite

The article considers proper legislation as an essential prerequisite for actualization of NPOs comparative advantages. Restrictions imposed on NPOs are reasonable if they are compensated by benefits from greater trust. The rigidity of constrains and requirements should be optimized while accounting for peculiarities of a social medium, the state of the nonprofit sector, and the governments readiness to encourage the development of the latter. As empirical data suggests, Russian NPOs being on different stages of maturity need separate legal treatment. In the meanwhile, interests that prevail in the NPOs community are not always conducive to rapid changes.

The Role of Nonprofit Sector Networks as Mechanisms for Immigrant Political Participation

2012 ◽  
Vol 7 (1) ◽  
pp. 27-46 ◽  
Author(s):  
Luisa Veronis
Keyword(s):  
Political Participation ◽  
Nonprofit Organizations ◽  
Latin American ◽  
Social Action ◽  
Multiple Scales ◽  
Nonprofit Sector ◽  
Ethnographic Study ◽  
Immigrant Community ◽  
Immigrant Political Incorporation

Issues of immigrant political incorporation and transnational politics have drawn increased interest among migration scholars. This paper contributes to debates in this field by examining the role of networks, partnerships and collaborations of immigrant community organizations as mechanisms for immigrant political participation both locally and transnationally. These issues are addressed through an ethnographic study of the Hispanic Development Council, an umbrella advocacy organization representing settlement agencies serving Latin American immigrants in Toronto, Canada. Analysis of HDC’s three sets of networks (at the community, city and transnational levels) from a geographic and relational approach demonstrates the potentials and limits of nonprofit sector partnerships as mechanisms and concrete spaces for immigrant mobilization, empowerment, and social action in a context of neoliberal governance. It is argued that a combination of partnerships with a range of both state and non-state actors and at multiple scales can be significant in enabling nonprofit organizations to advance the interests of immigrant, minority and disadvantaged communities.

Asian American Nonprofit Organizations in U.S. Metropolitan Areas

2005 ◽  
Vol 3 (1) ◽  
pp. 67-104 ◽  
Author(s):  
Chikan Richard Hung
Keyword(s):  
Nonprofit Organizations ◽  
Asian American ◽  
Public Interest ◽  
Community Organizing ◽  
Metropolitan Areas ◽  
Nonprofit Sector ◽  
Central Cities ◽  
Cultural Organizations ◽  
Related Information ◽  
Cultural Service

This article analyzes the characteristics of Asian American nonprofit organizations in major U.S. metropolitan areas. The data are based on internet archives of nonprofit organization Form 990 and related information. Asian American nonprofits are less than 20 years old on average. They remain a relatively small part of the nonprofit sector. Religious organizations are generally the largest group among Asian American nonprofits, followed by cultural organizations, service agencies, and public interest associations of similar proportions. Asian American secular organizations as a group tend to be younger, are more likely to be in central cities, in wealthy and poor communities, as well as in metropolitan areas with a more homogenous Asian ethnic population and a relatively more active general population in community organizing. The opposite is true for religious Asian American organizations. The pattern is less consistent among Asian American cultural, service, and public interest organizations. Regarding organization size, more established Asian American nonprofits, Pan Asian American organizations, and those agencies located in communities with larger Asian American population have more total assets and annual revenue.

ARNOVA's Symposium on Public Policy for Nonprofits

2011 ◽  
Vol 2 (1) ◽  
Author(s):  
Thomas Jeavons
Keyword(s):  
Public Policy ◽  
Nonprofit Organizations ◽  
Nonprofit Sector ◽  
Federal State ◽  
Voluntary Organizations ◽  
Public Charities ◽  
State And Local ◽  
The Impact ◽  
Local Levels

There are serious gaps in our knowledge and understanding of how public policy at the federal, state, and local levels affects the work of a wide array of nonprofit organizations. On October 4th and 5th, 2010, the Association for Research on Nonprofit Organizations and Voluntary Organizations (ARNOVA), with the support and encouragement of the Bill and Melinda Gates, Kresge and C.S. Mott foundations, convened a group of thirty nonprofit scholars and leaders to explore what we know about the impact of public policy on the nonprofit sector. The conference focused on how public policy helps or harms the ability of nonprofit organizations, particularly but not exclusively public charities, to fulfill their missions.

scholarly journals Shining a Light also Casts a Shadow: Neuroimaging Incidental Findings in Neuromarketing Research

Neuroethics ◽  
2021 ◽  
Author(s):  
Owen M. Bradfield
Keyword(s):  
Public Health ◽  
Rapid Growth ◽  
Incidental Findings ◽  
Brain Research ◽  
Social Value ◽  
Financial Resources ◽  
Potential Health ◽  
Functional Brain ◽  
Public Health Systems ◽  
The Social

AbstractRapid growth in structural and functional brain research has led to increasing ethical discussion of what to do about incidental findings within the brains of healthy neuroimaging research participants that have potential health importance, but which are beyond the original aims of the study. This dilemma has been widely debated with respect to general neuroimaging research but has attracted little attention in the context of neuromarketing studies. In this paper, I argue that neuromarketing researchers owe participants the same ethical obligations as other neuroimaging researchers. The financial resources available to neuromarketing firms and the social value of neuromarketing studies should command greater attention to the elucidation and management of incidental findings. However, this needs to be balanced against finite resources available within most public health systems.

scholarly journals The Impact of Audit Committees on US Nonprofit Organizations’ Governance

2020 ◽  
Vol 27 (1) ◽  
pp. 30
Author(s):  
Husam Abu-Khadra
Keyword(s):  
Nonprofit Organizations ◽  
Audit Committee ◽  
Nonprofit Sector ◽  
The United States ◽  
Preliminary Evidence ◽  
Securities And Exchange Commission ◽  
Audit Committees ◽  
Public Companies ◽  
Policy Makers ◽  
The Impact

All public companies in the United States are required by the securities and exchange commission (SEC) to have an audit committee. Such enforcement can be attributed to high-profile corporate failures and their connections to nonexistence, ineffective or weak audit committees and governance. Despite the efforts to establish a similar argument and enforcement structure for the nonprofit sector, the internal revenue service (IRS) has not pursued legislation, and no empirical evidence has been established to support any public policy changes. This paper contributes to the literature in this field by being the first study to examine 124,980 nonprofit organizations during the period of 2010 to 2015 to test the association between governance in nonprofit organizations and audit committees. We included fifteen measures from these organizations’ IRS Form 990 filings to formulate the study variables. We found significant evidence that the existence of audit committees improves the governance scores of nonprofit organizations. Our study findings have significant implications for nonprofit executives, policy makers and any other interested parties; these findings act as preliminary evidence to support more proactive policies regarding mandatory audit committees for nonprofit organizations. 

scholarly journals Measuring Concentration and Competition in the U.S. Nonprofit Sector: Implications for Research and Public Policy

2014 ◽  
Vol 5 (2) ◽  
pp. 231-259 ◽  
Author(s):  
Bruce A. Seaman ◽  
Amanda L. Wilsker ◽  
Dennis R. Young
Keyword(s):  
Public Policy ◽  
Nonprofit Organizations ◽  
Metropolitan Areas ◽  
Nonprofit Sector ◽  
Important Distinction ◽  
Effective Competition ◽  
Starting Point ◽  
Distribution Of Resources ◽  
Funding Programs ◽  
Concentration Patterns

AbstractIn an era of dramatic financial challenges, pressure is growing for U.S. nonprofit organizations to consolidate. Yet, we know little about the current concentration of the sector and even less about the degree of competition in various nonprofit subsectors. In this paper we offer a detailed analysis of concentration patterns across the sector and analyze variations in these patterns by subsector and metropolitan areas. It is well known that measuring concentration is not identical to assessing effective competition and is but a starting point for a more thorough competitive analysis. An important distinction is made between the concentration of resources within larger subsector organizations and inequality in the distribution of resources across those organizations. Some subsectors may be concentrated yet behave competitively because resources are distributed relatively equally among several large organizations. By contrast, other concentrated subsectors may behave less competitively because resources are very unequally controlled by a few organizations. Understanding the patterns of both concentration and inequality in the nonprofit sector is likely a prerequisite to drawing defensible conclusions about the degrees of competition in the sector and the desirability of further consolidation. This analysis has implications for both public policy and philanthropy. It bears on the issues of whether antitrust policy should be forcefully applied to the nonprofit sector, whether government funding programs should encourage nonprofit consolidation or competition, and whether philanthropic institutions should implore nonprofit organizations to consolidate further or to compete more vigorously.

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