Nonprofit Management and Leadership

Publisher:: Wiley
Publication date:: 2021-02-01

ISBN:: 1048-6682

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Background risk and nonprofit endowment portfolio volatility
This article focuses on endowed operating public charities that receive income not only from sources such as donations, grants, and service fees but also from endowment portfolios. Using the Form 990 data between 2009 and 2016, this study examines if the risk from nonendowment income sources, namely background risk, is relevant to endowment portfolio volatility, and if there are any differences across four types of nonprofits where endowment assets are the most concentrated, including museums, universities and colleges, K‐12 schools, and hospitals. The results show that the association between background risk and endowment portfolio volatility is significant and negative for universities; however, it is either nonsignificant or significantly positive for other types of organizations. This study extends research on university endowments to other types of endowed nonprofits. The findings imply different endowment objectives and reflect different asset allocation strategies across types of organizations.
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Measuring quality for human service improvement: How nonprofits meet the quality requirements of public authorities
The growing pressure for service quality has led to an increase in the dissemination of quality models in nonprofit human service organizations. In spite of this, little is known about their implementation. The present study therefore examines how quality management directives imposed by public authorities affect the adoption and use of quality measurement systems under different sets of conditions. Key findings, based on survey data from 536 human service nonprofits in Switzerland, suggest that external quality requirements foster the adoption of measurement systems to the greatest degree, but simultaneously reduce their actual utilization for service improvement. The strength of these effects is contingent on the organizations' resources and the quality of indicators. Managers' commitment to quality measurement shows the strongest effect on the use of quality measurement systems. These findings and the implications for future research and practice will be discussed.
Stories of strangers: Writing donor acquisition letters in the human services
This study explores the choices fundraisers make in crafting letters to acquire new donors for a human services organization, and whether the type of client served affects those choices. We use an experiment to control for organizational differences, and code the resulting letters written for elements identified in theory and practice, then perform an exploratory factor analysis to find patterns of co‐occurring variables. Writers tended to focus either on the quality of the organization or the unmet need in the community, but not both. Two of the factors, Universalism and Security, describe distinct personal value constructs that may reflect the preferences of the writer or the presumed preferences of the reader. Compared to participants writing for an older adult client base, participants writing for clients with mental illness were less likely to use a negative frame, more likely to use statistical evidence, and used lower expectations in describing successful client outcomes. Within letters, clients were described using three patterns: by describing a stranger who is worth helping because of intrinsic attributes; by describing a stranger who is worth helping because of their relationships within the social order; by describing the client group using facts and statistics, rather than an emotionally compelling story narrative.
Research trends in nonprofit graduate studies in China: An inside perspective
This paper explores the growth of the academic study of nonprofit management and organizations in China by examining theses and dissertations written in China between 2000 and 2018. Using a keyword search, we collect and review 5,346 abstracts available in the China National Knowledge Infrastructure Thesis and Dissertation database. The number of these theses and dissertations accelerated between 2000 and 2015 and slowed thereafter. Most theses and dissertations focus on the external context of nonprofit organizations (78%) and fewer on nonprofit management per se (22%). Thematic analysis reveals several broad subjects of study including organizational development, the character of the external environment and internal operations, financial and other resource support, and organizational performance. Trends across the 19‐year study period relating to national regions of origin, discipline, and theme are also explored. The development of nonprofit studies in China in some ways resembles the growth of this field in the United States and other western countries in past decades, but with distinct Chinese historical, sociocultural, and geographical characteristics.
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Audience success or art for art's sake? Efficiency evaluation of dance companies in the United States
Our aim is to evaluate the performance of American dance companies, considering that the production process may be subdivided into consecutive stages consisting of fundraising, artistic production, and social impact. A three‐stage network‐Data Envelopment Analysis model is applied which takes account of the links between stages in the form of intermediate inputs/outputs and provides an overall indicator of efficiency together with partial performance indicators in the stages. Given the lack of information for some variables, we previously undertook a process to impute missing values following MICE (multiple imputation by chained equations) procedures. Results show that the highest levels of efficiency are achieved during the cultural creation stage, whereas the lowest correspond to social impact, indicating that dance companies pursue artistic excellence in their cultural programming, irrespective of their activity's commercial outcomes. Moreover, public and private funds are seen to be channeled following this guideline, thereby justifying the non‐profit status of these entities.
Donative labor effect of the nonprofit pay: A multilevel explanation
Studies on the nonprofit pay differential find that nonprofit workers in the child day care industry earn more than comparable for‐profit workers, whereas nonprofit lawyers earn less than lawyers in for‐profit firms. Are nonprofit day care center workers less altruistic than for‐profit day care workers or nonprofit lawyers? The answer is yet to come. The study aims to test the donative labor hypothesis, which is derived from altruistic motivation. To estimate the donative labor effects on the individual level, I apply cross‐classified multilevel modeling to disentangle the confounding effects on the industry level and occupation level. Data are pooled from Census 2000 and American Community Survey 2005–2016 to provide individual, industry, and occupation information. Industries are cleaned based on the Statistics of Income data from the National Center for Charitable Statistics. My analysis finds that nonprofit workers earn 4.3% less than comparable for‐profit workers net of industry and occupation effects. The study contributes to elucidating the explanatory levels of different theories. The random‐effects modeling has established an exhaustive inventory of nonprofit pay differential across industry and occupation levels.
Starting from scratch: Building of meaningful endowments by public charities
Most nonprofits lack a true endowment and endowment wealth is concentrated in a relatively small number of organizations and subsectors. This study supports an operational definition of material endowment, equal to or greater than annual expenses, and investigates how common it is for a nonprofit to establish a meaningful endowment over time. Specifically, we address whether the sector's enthusiasm over the potential of endowment building is reflected in charitable organizations' experiences. Using financial data, we find that building a meaningful permanent endowment is a rare achievement among public charities over a period of two decades. Meaningful endowment creation, achieved by less than 2% of the sample, is more common for organizations with donor attachments, the need for subsidization of mission services, those with more fundraising costs, and those with more donative revenue portfolios.