Surviving the Black Swan Event: How Much Reserves Should Nonprofit Organizations Hold?

2021 ◽  
pp. 089976402110574
Author(s):  
Renée A. Irvin ◽  
Craig W. Furneaux
Keyword(s):  
Nonprofit Organizations ◽  
Economic Effects ◽  
Organizational Characteristics ◽  
Black Swan ◽  
Organizational Survival ◽  
Reserve Fund ◽  
Revenue Volatility ◽  
Civil Sector ◽  
Primary Current ◽  
Over Time

Organizational survival is a primary current focus, as the unforeseen economic effects of the pandemic ravage the civil sector. Over time, however, we turn to questions of resilience: How can organizations prepare for rare, but devastating, financial shocks? Three months of funds to cover operating expenses are often described as a suitable savings target. However, organizations differ greatly in their revenue volatility, which suggests that “3 months” may severely underestimate the reserves that certain organizations should hold. We measure revenue volatility and calculate reserve fund targets for 25 nonprofit subsectors, showing sharp differences in optimal savings levels ranging up to 1 year of total expenses. We also explore organizational characteristics associated with revenue volatility. We argue for a resilience strategy that goes beyond optimizing the contents of the revenue portfolio. Funders and nonprofit practitioners should consider the broader context of financial resilience that includes correctly sized reserves as a stabilizing force.

scholarly journals Organizational Characteristics Role in the Implementation of Information Security in Knowledge Management with a Focus on Employee Safety Behavior

2016 ◽  
Vol 10 (2) ◽  
pp. 123
Author(s):  
Abozar Solat Rafiee ◽  
Akbar Alem Tabriz ◽  
Mohammadreza Babaei
Keyword(s):  
Information Technology ◽  
Knowledge Management ◽  
Information Security ◽  
Organizational Characteristics ◽  
Safety Behavior ◽  
Senior Managers ◽  
Organizational Survival ◽  
Employee Safety ◽  
Knowledge Content ◽  
Main Components

Nowadays competitive advantage maintenance and organizational survival are not possible with no knowledge management. Due to the fact that the main components of the organizational knowledge transfer are human resources and this force only can produce and share knowledge content in the context of a safe system.  Therefore, the implementation of the information security and safety principles observance by the personnel are essential in knowledge management. Among these factors, organizational characteristics can be an affecting factor in the implementation of information security in knowledge management. In this study, the role of organizational characteristics on the implementation of the information security in organization's knowledge management with a focus on safety behavior of the staff in the Ministry of Communications and Information Technology and its subsidiaries, is investigated. The study type is applied research and the method is descriptive method which its population consists of senior managers and experts in the Ministry of Communications and Information Technology and its subsidiary companies. The sample size of 253 people has been set. A questionnaire was used to measure the research variables. Regression analysis was used to investigate the relationships between variables and AMOS software was used in this study. The results showed a significant relationship between organizational characteristics with safety behavior and also safety behavior with information security implementation in knowledge management. The organizational characteristics significantly are associated with the implementation of information security in knowledge management.

scholarly journals Better than before: the resilient organization in crisis mode

2018 ◽  
Vol 39 (1) ◽  
pp. 32-42 ◽  
Author(s):  
Epaminondas Koronis ◽  
Stavros Ponis
Keyword(s):  
Crisis Management ◽  
Design Methodology ◽  
Organizational Characteristics ◽  
Managerial Ability ◽  
Organizational Survival ◽  
Research Directions ◽  
Learning Abilities ◽  
Content Type ◽  
Practical Implications ◽  
Better Than

Purpose The paper aims to adopt a strategic view of organizational survival and argue that preparedness, responsiveness, adaptability and learning abilities constitute organizational drivers of resilience and provide a new direction on crisis management. Design/methodology/approach As a conceptual and literature exploration, the methodological focus is to combine various concepts within a unified model for resilience. Findings The proposed conceptual model highlights the need for strategic reconfigurations toward the construction of a resilience culture and the development of a supporting social capital in organizations. It also portrays organizational survival and sustainability as being dependent on strategic characteristics rather than on the managerial ability to handle situations and manage crisis. Research limitations/implications In this paper, implications, methodological concerns in the study of resilience and further research directions have been presented. Practical implications The paper approaches a new way of thinking about crises and provides a set of cultural and organizational characteristics that would increase resilience and crisis management abilities. Originality/value While organizations are nowadays more than ever affected by disruptions and crises, their inherent ability and strategies to protect their sustainability have been undertheorized. This paper aims at contributing to a growing and fruitful discussion.

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.

Service-Providing Nonprofits Working in Coalition to Advocate for Policy Change

2017 ◽  
Vol 47 (1) ◽  
pp. 27-48 ◽  
Author(s):  
John J. Chin
Keyword(s):  
New York ◽  
Nonprofit Organizations ◽  
Policy Change ◽  
Coalition Structure ◽  
Policy Advocacy ◽  
Organizational Survival ◽  
Advocacy Coalition ◽  
Implementation Level ◽  
Immigrant Health Policy

Nonprofit organizations that primarily provide social or health services can play an important role in policy advocacy, as indicated by recent research. Less is known about how and why they participate in policy advocacy, and concerns remain that their advocacy is overly self-interested. This case study of an urban immigrant health policy advocacy coalition made up primarily of service-providing nonprofits in New York City suggests that (a) service-providing nonprofits’ insights as daily case-level advocates for their clients generate unique contributions to policy change agendas, particularly at the policy implementation level rather than at the legislative level; (b) these organizations do not necessarily see a conflict between their organizational survival imperatives and social change objectives, nor between case-level and higher level advocacy; and (c) a coalition structure, leadership by an experienced advocacy organization, and dedicated foundation funding can elevate case advocacy concerns into a higher level and more sustained advocacy agenda.

scholarly journals Tracking Changes in US Organizations’ Workplace Health Promotion Initiatives: A Longitudinal Analysis of Performance Against Quality Benchmarks

2019 ◽  
Vol 34 (2) ◽  
pp. 142-149
Author(s):  
GracieLee M. Weaver ◽  
Daniel L. Bibeau ◽  
Kelly Rulison ◽  
Jeremy Bray ◽  
William N. Dudley ◽  
...  
Keyword(s):  
Health Promotion ◽  
Multilevel Modeling ◽  
Workplace Health Promotion ◽  
Organizational Characteristics ◽  
Workplace Health ◽  
Self Assessment ◽  
Convenience Sample ◽  
Organizational Assessment ◽  
Analysis Of Performance ◽  
Over Time

Purpose: To examine changes in organizations’ workplace health promotion (WHP) initiatives over time associated with repeated self-assessment using the Well Workplace Checklist (WWC). Design: Well Workplace Checklist data include a convenience sample of US organizations that selected to assess their performance against quality WHP benchmarks. Setting: Workplaces. Subjects: In total, 577 US organizations completed the WWC in 2 or more years from 2008 to 2015. Measures: The WWC is a 100-item organizational assessment that measures performance against the original set of quality benchmarks that were established by the Wellness Council of America (WELCOA). Analysis: This study examined changes in overall WWC scores as well as 7 separate benchmark scores. Multilevel modeling was used to examine changes in scores associated with repeated assessments, controlling for the year of assessment and organizational characteristics. Results: There were significant increases in overall WWC scores (β = 2.93, P < .001) associated with the repeated WWC assessments, after controlling for organizational characteristics. All 7 benchmark scores had significant increases associated with reassessment. Compared to other benchmarks, operating plan (β = 6.18, P < .001) and evaluation (β = 4.91, P < .001) scores increased more with each reassessment. Conclusion: Continued reassessment may represent more commitment to and investment in WHP initiatives which could lead to improved quality. Other factors that may positively influence changes in performance against benchmarks include company size, access to outside resources for WHP, and a history with implementing WHP.

scholarly journals The Liability of Volatility and How it Changes Over Time Among New Ventures

2019 ◽  
Vol 44 (5) ◽  
pp. 933-963 ◽  
Author(s):  
Erik Lundmark ◽  
Alex Coad ◽  
Julian S. Frankish ◽  
David J. Storey
Keyword(s):  
Strong Predictor ◽  
New Ventures ◽  
New Venture ◽  
Short Term ◽  
Average Decrease ◽  
Bank Accounts ◽  
Revenue Volatility ◽  
Changes Over Time ◽  
Over Time

This article theorizes how short-term revenue volatility affects new venture viability and how such volatility develops over time. Tracking the bank accounts of 6,578 new ventures over a 10-year period, we find that, even after controlling for a range of other factors, short-term revenue volatility is a strong predictor of venture exit. Although short-term revenue volatility is associated with the depletion of buffer resources and financial default, surviving ventures do not, on average, decrease their short-term revenue volatility over time. However, short-term revenue volatility decreases at the cohort level due to higher exit rates of volatile ventures.

scholarly journals Do Hermetic Storage Technology Significantly Abate Losses of Rice Over Time? An Economic Evaluation

2021 ◽  
pp. 52-59
Keyword(s):  
Economic Analysis ◽  
Net Present Value ◽  
Economic Effects ◽  
Cost Ratio ◽  
Rice Seed ◽  
Storage Technology ◽  
Plastic Bag ◽  
Traditional Technologies ◽  
Storage Technologies ◽  
Over Time

In Bangladesh, traditional technologies like Dole, Auri, Bamboo Gola, Motka, and Plastic bag are widely used in rice storage. Hot and humid weather of the country favors the growth of insects in these which are not functional for rice storage. Recently, hermetic bag (HB) GrainPro and PICS bags are suggested for rice storage without being subjected to economic analysis in the country. Very few empirical studies on the economic analysis of storage technologies were conducted at laboratory and field conditions. In it, losses of rice storage using traditional technologies and HB were evaluated to judge the economic effects of these. Moreover, determinants of storage benefit were analyzed for different devices and econometric modeling was formulated to have the understanding the benefit of reduced loss by storage over time. These benefits were found to increase with time meaning that a farmer gained more benefit by storing longer period in HB. Results showed that economically feasible and attractive in investing these technologies at a discount rate of 12 percent by using financial analytical tools like net present value (NPV) and benefit-cost ratio (BCR) of different storage technologies. The results also indicate that gain of storage clearly increased over time. Considering BCR, Plastic drum use in rice storage is the most profitable storage technology followed by GrainPro and PICS Bag for consumption. Regression analysis of treatment and time effect of storage indicated that percentage profit per month is found the highest in GrainPro bag followed by PICS bag, Dole, Plastic bag and Motka, respectively. Promotion of PICS and GrainPro bags in rice seed storage would be more cost-effective and economically feasible to farmers.

scholarly journals Nonprofit Strategic Management Revisited

2019 ◽  
Vol 9 (2) ◽  
Author(s):  
Eric W. Miller
Keyword(s):  
Human Capital ◽  
Strategic Management ◽  
Nonprofit Organizations ◽  
Customer Requirements ◽  
Environmental Pressures ◽  
For Profit ◽  
Wide Range ◽  
Efficiency And Effectiveness ◽  
Strategy Performance ◽  
Over Time

This article presents a review and analysis of empirically based research on strategic management in nonprofit organizations appearing in peer-reviewed journals between 1998 and 2015, and compares these findings with an earlier, similar study to determine how nonprofit use of strategic management has evolved over time. Findings suggest that determinants of strategic management have evolved beyond funder requirements to include environmental pressures to increase organizational efficiency and effectiveness, professionalize staff capacities, and respond to changing customer requirements. Nonprofits continue to use strategic management in response, and have recently adopted a wide range of for-profit strategies and practices in both strategy content and strategy performance areas. Strategic management offers both risks and rewards for nonprofits, but requires significant time, resources, and human capital that not all nonprofits readily possess.RÉSUMÉCet article présente l’évaluation et l’analyse de recherches empirique—parues entre 1998 et 2015 dans des revues évaluées par les pairs—sur la gestion stratégique d’organismes à but non lucratif. Il compare ces données avec uneétude antérieure similaire afin de déterminer comment la gestion stratégique par les organismes à but non lucratif a évolué. Les résultats suggèrent que les déterminants de la gestion stratégique ont progressé au-delà des besoins des subventionneurs, tenant compte aujourd’hui des pressions environnementales pour accroître l’efficience et l’efficacité organisationnelles, professionnaliser le personnel et répondre aux besoins changeants de la clientèle. Dans ces circonstances, les organismes à but non lucratif continuent de recourir à la gestion stratégique et ont récemment adopté un vaste éventail de stratégies et pratiques à but lucratif dans les domaines du contenu et de la performance stratégiques. La gestion stratégique, tout en posant certains risques, offre incontestablement des récompenses aux organismes à but non lucratif, mais elle requiert un temps, des ressources et une main d’oeuvre que les organismes à but non lucratif ne possèdent pas forcément.

The Economics of Forced Labor

Itinerario ◽  
1993 ◽  
Vol 17 (1) ◽  
pp. 59-77
Author(s):  
Stanley Engerman
Keyword(s):  
Economic Effects ◽  
Forced Labor ◽  
Change Over Time ◽  
Historical Literature ◽  
Over Time

The problem of forced labor has been at the center of much recent historical literature. If anything, the debate has shown that not all coercion has the same social, political, and economic effects upon the coerced laborer and his (or her) employer. Central to this debate is the question why coerced labor is needed, and why certain forms of coerced labor are chosen under certain circumstances. Why do the specific forms of coerced labor change over time and differ across space, and why, even in a given area at a given time, do differing forms of coerced labor exist?

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