Interlocking Boards in Nonprofit Organizations

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.

Is It “Just Work”? The Impact of Work Rewards on Job Satisfaction and Turnover Intent in the Nonprofit, For-Profit, and Public Sectors

2018 ◽  
Vol 49 (4) ◽  
pp. 495-511 ◽  
Author(s):  
Keely Jones Stater ◽  
Mark Stater
Keyword(s):  
Job Satisfaction ◽  
Nonprofit Organizations ◽  
Nonprofit Sector ◽  
General Social Survey ◽  
Turnover Intent ◽  
For Profit ◽  
Public Sectors ◽  
Work Rewards ◽  
The Impact ◽  
Social Rewards

This article uses the General Social Survey (GSS) to compare the effects of “social” work rewards on job satisfaction and turnover intent for nonprofit, public, and for-profit workers. Drawing on properties of the nonprofit sector, we hypothesize that social rewards should be more prevalent in nonprofit workplaces and have a larger impact on job decisions for nonprofit than for government and for-profit workers. Consistent with this, we find that social rewards are perceived as more prevalent in nonprofit organizations. In addition, having helpful coworkers and having a supervisor who cares about one’s welfare have larger effects on job satisfaction for nonprofit workers than for workers in the other two sectors, and having a helpful supervisor discourages turnover intent to a larger extent in the nonprofit sector than in the for-profit and public sectors. Overall, however, we find that differences in the magnitude of impact of social rewards by sector are less pronounced than theory would suggest.

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 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.

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. 

Board Capital and Board Effectiveness: An Examination of Florida Community Foundations

2021 ◽  
Author(s):  
Lauren Azevedo
Keyword(s):  
Nonprofit Sector ◽  
Board Members ◽  
Executive Directors ◽  
Board Effectiveness ◽  
Structural Capital ◽  
Community Foundations ◽  
Board Capital ◽  
Management Literature ◽  
The Impact ◽  
Community Foundation

Community foundations have considerable potential for positive social change in the communities they serve yet are understudied in nonprofit management literature. This exploratory study considers board capital of community foundations and the impact this has on board effectiveness. Based on survey data from 71 community foundation board members and executive directors representing 13 community foundations, the study uses regression to test hypotheses. The study finds that board capital, measured by human capital, structural capital, and social capital, plays a factor in board effectiveness. Further, community foundation boards in the survey population are highly effective and have unique attributes that make them distinct from other types of boards. Findings have potential for significant insight on an important segment of nonprofit sector organizations.

Crisis communication planning and nonprofit organizations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Brittany Haupt ◽  
Lauren Azevedo
Keyword(s):  
Emergency Management ◽  
Nonprofit Organizations ◽  
Crisis Communication ◽  
Academic Research ◽  
Content Type ◽  
Communication Plan ◽  
Planning Framework ◽  
Essential Services ◽  
The Impact ◽  
Communication Planning

PurposeThe purpose of this paper is to discuss the evolution of crisis communication and management along with its inclusion into the field and practice of emergency management. This paper also discusses the inclusion of nonprofit organizations and the need for these organizations to engage in crisis communication planning and strategy creation to address the diverse and numerous crises that nonprofits are at risk of experiencing.Design/methodology/approachThis paper utilizes a systematic literature review of crisis communication planning tools and resources focused on nonprofit organizations to derive best practices and policy needs.FindingsThe resources analyzed provide foundational insight for nonprofit organizations to proactively develop plans and strategies during noncrisis periods to support their organization when a crisis occurs.Research limitations/implicationsLimitations of this paper include limited academic research and practical resources related to nonprofit organizations and crisis communication planning. As such, several potential avenues for empirical research are discussed.Practical implicationsThis paper provides considerations for nonprofit organizations engaging in crisis communication planning and aspects leaders need to partake in to reduce or eliminate the risk of facing an operational or reputational crisis.Social implicationsThis paper highlights the critical need to generate a crisis communication plan due to the diverse crises nonprofit organizations face and their connection to the emergency management structure. Understanding the crisis and utilizing a crisis communication plan allows nonprofit organizations a way to strategically mitigate the impact of a crisis while also providing essential services to their respective communities and maintain their overall stability.Originality/valueThis paper is unique in its analysis of crisis communication planning resources and creation of a planning framework to assist nonprofit organizations in their planning efforts.

The Role of Web Assurance Seals in Nonprofit Giving

2019 ◽  
Vol 34 (2) ◽  
pp. 131-148
Author(s):  
Joseph Canada ◽  
Erica E. Harris
Keyword(s):  
Nonprofit Organizations ◽  
Positive Relationship ◽  
Data Availability ◽  
Charitable Contributions ◽  
The Public ◽  
For Profit ◽  
Donor Support ◽  
The U.S ◽  
The Web

ABSTRACT Using a sample of the 2,000 largest nonprofit organizations in the U.S., we document that the use of web assurance seals is not as commonplace as for-profit e-commerce websites. In particular, we find that only about 14 percent of sample organizations invest in web assurance seals. Those that do provide web seals are larger, less efficient, and spend more on fundraising and information technology. Interestingly, however, our size result weakens for the very largest organizations in our sample. In addition to our contribution to the web assurance literature, we also contribute to donations research in identifying another feature important to donors in the decision to give. Specifically, we find a positive relationship between web seals and donations, indicating that providing this type of assurance attracts more donor support. We believe this is particularly interesting given the relatively few organizations adopting this type of signal in the marketplace for charitable contributions. Data Availability: Data are available from the public sources cited in the text.

“Corporate governance” and performance in nonprofit organizations

2020 ◽  
pp. 147612702092125
Author(s):  
Dane P Blevins ◽  
Roberto Ragozzino ◽  
Rory Eckardt
Keyword(s):  
Corporate Governance ◽  
Nonprofit Organizations ◽  
Agency Problems ◽  
Chief Executive ◽  
Total Revenue ◽  
Publicly Traded ◽  
For Profit ◽  
Governance Practices ◽  
And Performance ◽  
Scholarly Attention

Corporate governance has received substantial scholarly attention for decades, although the focus of this research has by and large been on publicly traded for-profit organizations. However, agency problems are increasingly recognized in nonprofits. As such, we examine the application of corporate governance logic in the context of nonprofits. Our study relies on nearly a decade of data spanning 6853 US-based charities and comprising nearly US$346 billion in total revenue. Our results show that common corporate governance practices—such as independent boards, chief executive officer oversight, and transparency—enhance the degree to which donor contributions are allocated toward a charity’s mission. Overall, we assess the broader applicability and benefits of corporate governance and build on literature highlighting links between for-profit and nonprofit organizations. In doing so, we demonstrate the usefulness of governance in this economically and socially consequential context.

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

2015 ◽  
Vol 44 (1) ◽  
pp. 91-118 ◽  
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.

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

2011 ◽  
Vol 25 (1) ◽  
pp. 107-125 ◽  
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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