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

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.

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ARNOVA's Symposium on Public Policy for Nonprofits

Nonprofit Policy Forum ◽

10.2202/2154-3348.1032 ◽

2011 ◽

Vol 2 (1) ◽

Cited By ~ 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.

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The Impact of Audit Committees on US Nonprofit Organizations’ Governance

JABM JOURNAL of ACCOUNTING - BUSINESS & MANAGEMENT ◽

10.31966/jabminternational.v27i1.560 ◽

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.

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The new public service? Empirical research on job choice motivation in the nonprofit sector

Personnel Review ◽

10.1108/pr-07-2012-0120 ◽

2015 ◽

Vol 44 (1) ◽

pp. 91-118 ◽

Cited By ~ 14

Author(s):

Jessica Word ◽

Sung Min Park

Keyword(s):

Nonprofit Organizations ◽

Work Motivation ◽

Nonprofit Sector ◽

Professional Associations ◽

Job Security ◽

Hierarchical Regression ◽

Future Research ◽

Job Choice ◽

Content Type ◽

The Impact

Purpose – The purpose of this paper is to examine the factors influencing the decision of managers to work in the nonprofit sector and how these choices are shaped by intrinsic and extrinsic motivations. Additionally, this research examines the impact of job choice motivation on social, community and professional outcomes and the unique characteristics of managers in the nonprofit sector. Design/methodology/approach – This research employed data from the National Administrative Studies Project (NASP-III) survey, which measured the mid- and upper-level managers working in nonprofit organizations in Illinois and Georgia. The survey measured the manager’s perceptions of various organizational issues, including work motivation, mentoring and communication, career histories, hiring practices, and organizational cultures and structures. The data were then analyzed using a hierarchical regression model. Findings – The findings of this research support the idea that intrinsic motivation is an important aspect of job choice motivation for individuals in the nonprofit workforce. In addition, the findings suggest other characteristics, including policies that enhance work life balance (WLB), advancement, and job security, are important to understand the job choice motivations of nonprofit managers. This research also found not all types of nonprofit agencies attract similarly motivated individuals, or lead to equivalent community outcomes. Research limitations/implications – The organizations represented in the NASP III sample included more membership and professional associations than the overall nonprofit sector. This over representation partially limits the generalizability of these findings but it also allows the research to more thoroughly understand this unique subset of organizations that serve predominantly the narrow interests of their members. Practical implications – This research highlights the advantage nonprofit employers have over other organizations in terms of using intrinsic motivations to attract employees. However, the findings also suggest nonprofit organizations need to focus on human resource (HR) strategies including policies that enhance WLB, advancement, and job security to compete with other employers for talent. Finally, the research also suggests the need to tailor HR strategies to groups of nonprofit employees based upon important employee characteristics such as gender, job type, and prior career experience. Originality/value – This study extends a well-developed body of knowledge on motivations and selection of career paths to individuals working in the nonprofit sector. It also suggests variations among employees and organizations matter in terms of the type of individuals attracted to particular career path in nonprofits. Additionally, this research suggests future research needs to include more nuanced examinations of the differences which exist among organizations in the nonprofit sector rather than simply focussing upon similarities across the most prevalent types of nonprofit organizations.

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The Impact of Regulation on the U.S. Nonprofit Sector: Initial Evidence from the Nonprofit Integrity Act of 2004

Accounting Horizons ◽

10.2308/acch.2011.25.1.107 ◽

2011 ◽

Vol 25 (1) ◽

pp. 107-125 ◽

Cited By ~ 25

Author(s):

Daniel G. Neely

Keyword(s):

Nonprofit Organizations ◽

Financial Reporting ◽

Nonprofit Sector ◽

Reporting Quality ◽

Charitable Organizations ◽

Time Period ◽

Financial Statement Audit ◽

Before And After ◽

Financial Scandals ◽

The Impact

SYNOPSIS: The early 2000s revealed a series of high-profile financial frauds in the corporate and nonprofit sectors. In response to several of these financial scandals, California passed the Nonprofit Integrity Act (NIA) of 2004. This seminal piece of governance regulation sought to increase financial transparency and mitigate fundraising abuses by California charitable organizations. This study examines the characteristics of California charitable organizations before and after the Act to understand the initial impact the Act had on nonprofit organizations. Key findings from the study include limited reported improvement in financial reporting quality and an increase in accounting fees following the implementation of the Act. California nonprofits subject to the Act’s provisions did exhibit an increase in executive compensation following the implementation of the Act; however, the increase was less than that exhibited by the population of nonprofits during the same time period. Overall, the results of this study suggest that the initial impact of regulations similar to the NIA is greatest for organizations that did not previously have a financial statement audit.

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Interlocking Boards in Nonprofit Organizations

Accounting Horizons ◽

10.2308/horizons-16-104 ◽

2020 ◽

Vol 34 (2) ◽

pp. 1-17

Author(s):

Rebecca I. Bloch ◽

Erica E. Harris ◽

Amanda N. Peterson

Keyword(s):

Nonprofit Organizations ◽

Nonprofit Sector ◽

Academic Research ◽

Data Availability ◽

Shared Knowledge ◽

Board Members ◽

Washington Dc ◽

For Profit ◽

Governance Practices ◽

The Impact

SYNOPSIS A board interlock occurs when a board member from one organization joins the board of a separate organization. This interlock forms a social network between board members, through which information, knowledge, practices, and policies flow between organizations. Academic research on for-profit entities suggests that interlocks are a conscious strategic choice made by organizations (Hallock 1997). We study board interlocks in the nonprofit sector. In doing so, we shed light on the impact of interlocking boards on nonprofit governance, organizational efficiency, and donations secured. Using a sample of more than 3,000 industry-diverse nonprofit organizations in the Washington, DC metropolitan area, we find that interlocked organizations have better governance practices and run more efficient operations, in line with the diffusion of best practices and shared knowledge and experience between organizations. Furthermore, we find that interlocked organizations report more donations, consistent with the expanded network provided by these relationships. Data Availability: The data used to perform this study are publicly available via GuideStar.

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Assembling the Puzzle of the Nonprofit-Economic Development Linkage

Nonprofit Policy Forum ◽

10.1515/npf-2012-0016 ◽

2013 ◽

Vol 5 (1) ◽

pp. 45-65 ◽

Cited By ~ 2

Author(s):

John F. Brennan ◽

Laurie Paarlberg ◽

Michele Hoyman

Keyword(s):

Economic Development ◽

Nonprofit Organizations ◽

Church Attendance ◽

Nonprofit Sector ◽

Secondary Data ◽

Organizational Structures ◽

Business Associations ◽

Fraternal Organizations ◽

Complex Relationships ◽

The Impact

AbstractThis study seeks to quantify the impact of the nonprofit sector on economic development by more clearly defining the diverse roles that nonprofits may play in development – instrumental, expressive, and connective. We begin by summarizing existing research on nonprofit organizations and economic development. Using secondary data, we test our model in 360 U.S. metropolitan areas for the years 2001–2006. Do nonprofit organizations produce economic growth? Our statistical findings suggest, “Not really” and “It depends.” While some forms of nonprofit organizations (business associations) are positively related to growth, others such as congregations and social and fraternal associations may have a dampening effect. Overall, our findings suggest complex relationships between individual forms of capital, organizational structures, and development that may be place and time dependent. While our findings currently provide little guidance for policy makers attempting to promote economic development, our findings do have important implications for nonprofit and public policy scholars. Any attempt to explore the relationship between nonprofit activity and development must untangle indicators of individual behavior (church attendance or census return rates) from indicators of organizational structures (such as the number of specific organizations). Second, any effort to understand the impact of the nonprofit sector should disaggregate sector measures based upon a conceptual understanding of the diverse roles of various organizational types (for example, human service organizations versus social and fraternal organizations). Finally, growth and development and the role of the sector are contextual, exhibiting significant regional and temporal variation.

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The Impact of Audit Committees on US Nonprofit Organizations’ Governance

JABM JOURNAL of ACCOUNTING - BUSINESS & MANAGEMENT ◽

10.31966/jabminternational.v27i2.690 ◽

2020 ◽

Vol 27 (2) ◽

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

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The impact of the patent system on the social welfare: A critical view

Intangible Capital ◽

10.3926/ic.789 ◽

2018 ◽

Vol 14 (2) ◽

pp. 253

Author(s):

Gregorio Giménez

Keyword(s):

Social Welfare ◽

New Technologies ◽

Innovation Policy ◽

Free Market ◽

Patent System ◽

Barriers To Entry ◽

Market Mechanisms ◽

Critical View ◽

The Social ◽

The Impact

Purpose: This article offers a critical view of the impact of patents on economic activity.Design/methodology/approach: We develop two analytic innovation models. They help us to understand how the strength of the patent system affects 1) the industry profits 2) the social welfare.Findings: The strengthening of patent systems could cause a decline in the activities of imitation and, therefore, a decrease in competition, a reduction in the production and assimilation of new technologies and could create barriers to entry into technology-intensive sectors, increasing the costs of production. We will show that a lower strength patent system and an increase in the activities of imitation can i) increase the benefits to industry as a whole ii) lead to greater social surplus.Originality/value and social implications: Much of the literature on innovation has traditionally seen imitation processes as harmful to the development of new technologies, and detrimental to the welfare of consumers, producers and society at large. That is why policies aimed at strengthening the patent system and discouraging imitation processes are associated with improvements in social welfare, —fostering innovation, trade, foreign investment and technology transfer—. However, our findings should lead us to rethink how optimal innovation policy should be designed. The problems associated with restrictions on the free market involve costs that outweigh the social benefits that patents can provide. Market mechanisms can effectively reward innovators for being the first to bring a product into the market, without the need to grant a monopoly.

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Testing Nonprofit State Culture: Its Impact on the Health of the Nonprofit Sector

Nonprofit Policy Forum ◽

10.1515/npf-2018-0012 ◽

2018 ◽

Vol 9 (3) ◽

Cited By ~ 1

Author(s):

Sarah L. Pettijohn ◽

Elizabeth T. Boris

Keyword(s):

Nonprofit Organizations ◽

State Government ◽

Nonprofit Sector ◽

The United States ◽

State Regulation ◽

State Culture ◽

Nonprofit Funding ◽

The Government ◽

Using Data ◽

The Impact

AbstractGovernment monitors, regulates, and funds nonprofit organizations, making it is a key player in the health of the nonprofit sector in the United States. However, not all states treat nonprofits similarly. Prior work identified three types of state nonprofit culture (Pettijohn, S. L., and E. T. Boris. 2017. State Nonprofit Culture: Assessing the Impact of State Regulation on the Government-Nonprofit Relationship. Grand Rapids, MI: ARNOVA Presentation.), or a unique set of attitudes and beliefs that shape the operating norms between state government and nonprofits. This article analyzes whether differences among state nonprofit culture are measureable in the government-nonprofit relationship. Using data from the Urban Institute’s 2013 Nonprofit-Government Contracting and Grants survey, we find there are significant differences in the government-nonprofit funding relationships, which means nonprofits operating in certain state nonprofit cultures face different types and degrees of risk to their organization’s overall health.

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Policy analysis and the nonprofit sector

Policy Analysis in the United States ◽

10.1332/policypress/9781447333821.003.0014 ◽

2018 ◽

Author(s):

Steven Rathgeb Smith

Keyword(s):

Public Policy ◽

Strategic Planning ◽

Policy Analysis ◽

Nonprofit Organizations ◽

Return On Investment ◽

Nonprofit Sector ◽

Policy Research ◽

Theory Of Change ◽

The Impact ◽

Related Process

This chapter explores the use of policy analysis by nonprofit organizations, from its beginnings in the late 19th century to its significant expansion in the last 30 years. While policy analysis in nonprofits began as an extension of advocacy efforts for particular reform agendas, scarce funding, professionalization of the nonprofit workforce, and greater emphasis on accountability have increased the use of outcome-oriented policy analysis approaches including the theory of change, logic models and log-frames, and collective impact or social return on investment approaches. Nonprofits have also begun to use the related process of strategic planning to identify benchmarks and targets and to structure periodic assessment. Nonetheless, nonprofits continue to undertake policy research and to use policy analysis to influence public policy in ways that advance their mission and goals. As the use of policy analysis in nonprofits expands, one challenge will be to take a broad view of the potential outcomes of nonprofits to ensure the impact of nonprofits is adequately assessed.

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