The Governance of Nonprofit Organizations: Empirical Evidence From Nongovernmental Development Organizations in Spain

2006 ◽  
Vol 35 (4) ◽  
pp. 588-604 ◽  
Author(s):  
Pablo de Andrés-Alonso ◽  
Natalia Martín Cruz ◽  
M. Elena Romero-Merino
Keyword(s):  
Nonprofit Organizations ◽  
Empirical Evidence ◽  
Development Organizations ◽  
Nongovernmental Development Organizations

scholarly journals Market Orientation in NGDOs: Construction of a Scale Focused on Their Stakeholders

2019 ◽  
Vol 8 (8) ◽  
pp. 237 ◽  
Author(s):  
Valero-Amaro ◽  
Galera-Casquet ◽  
Barroso-Méndez
Keyword(s):  
Nonprofit Organizations ◽  
Market Orientation ◽  
Nonprofit Sector ◽  
Reliability And Validity ◽  
Management Philosophy ◽  
Social Legitimacy ◽  
Development Organizations ◽  
Orientation Scale ◽  
Optimal Values ◽  
Nongovernmental Development Organizations

Nongovernmental development organizations (NGDOs) have traditionally enjoyed notable recognition and visibility within the field of nonprofit organizations. However, the situation of this sector is problematic in its need to respond to various threats whether programmatic, financial, or of social legitimacy. This study poses as a hypothesis that market orientation, as a management philosophy which many NGDOs could adopt, may be fundamental for them to deal successfully with the challenges they face. An analysis of the literature on market orientation in the nonprofit sector showed that the existing models of market orientation did not adequately capture NGDOs’ real working context, thus recommending a broader market approach based on proposals oriented to the stakeholder and to social aspects. For this reason, the objective of the study was to create a scale of market orientation adapted to the reality of the work of NGDOs. Analysis of a sample of 104 Spanish entities allowed an eight-factor market orientation scale for NGDOs to be created and validated, which reached optimal values of reliability and validity.

The Nonprofit Starvation Cycle: Empirical Evidence From a German Context

2019 ◽  
Vol 48 (3) ◽  
pp. 467-491 ◽  
Author(s):  
Peter Schubert ◽  
Silke Boenigk
Keyword(s):  
Nonprofit Organizations ◽  
Empirical Evidence ◽  
Nonprofit Sector ◽  
Government Funding ◽  
Financial Data ◽  
Organizational Infrastructure ◽  
The U.S ◽  
Over Time

The nonprofit starvation cycle describes a phenomenon in which nonprofit organizations continuously underinvest in their organizational infrastructure in response to external expectations for low overhead expenditure. In this study, we draw on nonprofit financial data from 2006 to 2015 to investigate whether the German nonprofit sector is affected by this phenomenon, specifically in the form of falling overhead ratios over time. We find reported overhead ratios to have significantly decreased among organizations without government funding and that the decrease originates from cuts in fundraising expenses—two results that are in contrast to previous findings from the U.S. nonprofit sector. With this study, we contribute to nonprofit literature by engaging in a discussion around the starvation cycle’s generalizability across contexts.

Neighborhood Development Organizations and Neighborhood Disadvantage: Race, Resources, and Inequality in Chicago

2020 ◽  
pp. 089976402094192
Author(s):  
Bryant Crubaugh
Keyword(s):  
Nonprofit Organizations ◽  
Residential Mobility ◽  
Neighborhood Disadvantage ◽  
State Governments ◽  
Organizational Resources ◽  
Neighborhood Development ◽  
Racial Inequalities ◽  
Black Neighborhoods ◽  
Beneficial Effects ◽  
Development Organizations

This article analyzes the relationship between neighborhood development organizations (NDOs) and neighborhood disadvantage in Chicago between 1990 and 2010. NDOs are often seen as interdependent partners with local and state governments in the co-production of social welfare, but not all have equally beneficial effects. Instead, NDOs are associated with lowering rates of disadvantage in majority non-Hispanic White neighborhoods, leaving other neighborhoods behind, especially predominately Black neighborhoods. Organizational resources and residential mobility help explain this inequality. NDOs in majority Black neighborhoods are less likely to have the organizational resources that enable NDOs to affect neighborhood disadvantage. When NDOs are associated with the lowering of neighborhood disadvantage, it is often in neighborhoods with preexisting advantage or high rates of residential mobility. As cities continue to rely on nonprofit organizations such as NDOs for neighborhood development, this research gives a clearer understanding of how this reliance may contribute to perpetuating racial inequalities.

Expense Misreporting in Nonprofit Organizations

2006 ◽  
Vol 81 (2) ◽  
pp. 399-420 ◽  
Author(s):  
Ranjani Krishnan ◽  
Michelle H. Yetman ◽  
Robert J. Yetman
Keyword(s):  
Nonprofit Organizations ◽  
Empirical Evidence ◽  
Large Body ◽  
Positive Association ◽  
Financial Statements ◽  
Managerial Incentives ◽  
Managerial Compensation ◽  
Anecdotal Evidence ◽  
Financial Reports

We examine whether nonprofit organizations understate fundraising expenses in their publicly available financial statements. A large body of anecdotal evidence notes that an inexplicable number of nonprofits report zero fundraising expenses. We provide empirical evidence that the zero fundraising expense phenomenon is at least partly due to inappropriate reporting. We then examine to what extent these misreported expenses are the result of managerial incentives. Prior research finds an association between reported expenses and managerial compensation as well as the level of donations received. Using these findings we construct two incentive variables and find a positive association between misreporting behavior and managerial incentives. Our results also suggest that the use of an outside accountant reduces the probability that a nonprofit will misreport expenses, consistent with the use of an outside paid accountant increasing the reliability and usefulness of nonprofit financial reports. Finally, we find that SOP 98-2 reduced the probability that a nonprofit will misreport fundraising expenses.

Examining the Agency-Foundation Relationship in Local Park and Recreation Services

2022 ◽  
Author(s):  
Nicholas Pitas ◽  
Samantha Powers ◽  
Andrew Mowen
Keyword(s):  
Service Delivery ◽  
Nonprofit Organizations ◽  
Empirical Evidence ◽  
Future Research ◽  
Community Based ◽  
Big Picture ◽  
Recreation Service ◽  
Park And Recreation ◽  
Community Based Services ◽  
Practical Implications

Local park and recreation agencies supply a variety of community-based services, often at little or no direct cost to users. To supplement tax-based allocations, many agencies rely on partnerships with park foundations, nonprofit organizations that directly support park and recreation service delivery. Despite their prevalence and importance, there is a lack of empirical evidence about the agency-foundation (AF) relationship; this project begins to address this need, and seeks to inform the efforts of professionals navigating these partnerships. Results from a survey of National Recreation and Park Association (NRPA) member agencies (n = 235) illustrated that these partnerships are generally viewed as close, effective, and strong, and of particular value relevant to “big picture” agency activities such as fundraising and community engagement. A comparison of communities indicates that the AF relationship is more common in larger communities, and among larger and more complex agencies. Practical implications for practitioners and potential directions for future research are discussed.

Nonprofit Commercial Revenue

2010 ◽  
Vol 41 (6) ◽  
pp. 686-704 ◽  
Author(s):  
Janelle A. Kerlin ◽  
Tom H. Pollak
Keyword(s):  
Institutional Theory ◽  
Nonprofit Organizations ◽  
Empirical Evidence ◽  
Resource Dependency ◽  
Panel Analysis ◽  
Dependency Theory ◽  
Commercial Activity ◽  
Government Grants ◽  
Private Contributions ◽  
Government Grant

This article examines whether there has been an increase in nonprofit commercial revenue and if so whether declines in government grants and private contributions were behind the rise. A number of nonprofit scholars have held that nonprofit commercial activity increased significantly during the 1980s and 1990s. Following on resource dependency theory, they suggest that nonprofits use commercial income as a replacement for lost government grant and private revenue. However, authors for and against this thesis have provided little empirical evidence to test these claims. This study uses the Internal Revenue Services’ Statistics of Income database to track sources of revenue for charitable nonprofit organizations from 1982 to 2002. Trend and panel analysis show that although there was a large increase in commercial revenue, there is little evidence the increase was associated with declines in government grants and private contributions. Findings point to institutional theory and have important implications for policymakers and nonprofit practitioners.

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