The dilemma for small human service nonprofits: Engaging in collaborations with limited human resource capacity

• DOI: http://doi.org/10.1002/nml.21314
• Author: Shuyang Peng,Mirae Kim
• Published date: 01 September 2018
• Date: 01 September 2018

RESEARCH ARTICLE

The dilemma for small human service nonprofits:

Engaging in collaborations with limited human

resource capacity

Mirae Kim

1

| Shuyang Peng

2

1

Andrew Young School of Policy Studies, Georgia

State University, Atlanta, Georgia

2

School of Public Administration, University of

New Mexico, Albuquerque, New Mexico

Correspondence

Mirae Kim, Andrew Young School of Policy

Studies, Georgia State University, 14 Marietta St

NW, Atlanta, GA 30303.

Email: mkim141@gsu.edu

Although the topic of nonprofit collaboration has attracted

much scholarly attention, few studies have focused on col-

laborations of small nonprofits in particular. This study

examines the human resource capacity dilemma that many

small human service nonprofit organizations face and its

relationship to a nonprofit's collaboration efforts. Our

analysis is based on 2016 online survey data from

229 small human service nonprofit organizations with

annual gross receipts of less than $500,000. Descriptive

results show that most of the small human service non-

profits have very few paid staff. Even so, over 90% of

these small human service nonprofit organizations are

involved in formal collaborations and/or informal net-

works. Analytical results suggest that organizations are

more likely to participate in formal collaborations when

they have at least one or more full-time employees; these

collaborations help organizations obtain funding and meet

client needs. We discuss the implications of our findings

and offer insights for small nonprofits that aim to expand

service capacity through collaborations.

KEYWORDS

collaborations, human resource capacity, human

resources, small nonprofits

1|INTRODUCTION

A majority of nonprofits in the United States are small in terms of financial size. Nearly 80% of

reporting public charities operate with less than $1 million, and about three out of four registered

nonprofits report less than $500,000 in gross receipts According to the National Center for Charitable

Statistics’2013 Core Files. There is scant research that specifically pays attention to this subgroup

Received: 1 July 2017 Revised: 9 March 2018 Accepted: 21 March 2018

DOI: 10.1002/nml.21314

Nonprofit Management and Leadership. 2018;29:83–103. wileyonlinelibrary.com/journal/nml © 2018 Wiley Periodicals, Inc. 83

despite the massive number of small nonprofits. Small nonprofits make crucial contributions to build-

ing vibrant communities and addressing localized needs (Francis & Talansky, 2013). Yet they often

lack staff experienced in operations, rely heavily on volunteers, and work with a relatively weak

financial condition and limited visibility (Knox & Wang, 2016; Koenig, n.d.; Roeger, 2010). The

uniqueness of small nonprofits necessitates an exclusive and in-depth examination as they face

unique challenges and have distinct needs, compared with medium and large nonprofits.

Focusing on small nonprofits, this study examines two areas: collaboration and human resource

capacity. As anecdotes and professional reports have claimed, most small nonprofits operate with

limited financial and human capital and constantly stretch themselves to meet demands (Francis &

Talansky, 2013). Collaboration can be a viable solution for small nonprofits to address internal

resource constraints. Indeed, a number of studies have shown that nonprofits have more opportunities

to obtain resources, enhance visibility, improve service quality, and build a strong community when

they collaborate with other nonprofits, government agencies, and businesses (Grønbjerg & Child,

2004; Snavely & Tracy, 2000; Sowa, 2009).

Unfortunately, small nonprofits are less likely to have access to collaborations than larger non-

profits mostly due to their limited resource capacities (Garvey, 2006; Grønbjerg & Child, 2004).

Successful collaboration requires competency of staff and of organizations (Ritter & Gemünden,

2003; Takahashi & Smutny, 2002). Shumate, Cooper, Pilny, and Pena-y-lillo (2017) identified

board leadership and staff management as key dimensions of nonprofit capacities. Similarly, ear-

lier studies identified human resource capacity to be essential in establishing collaborative efforts,

managing ongoing collaborative tasks, and communicating with collaborators (Gazley & Brudney,

2007). Nevertheless, small nonprofits often find themselves understaffed to perform multiple func-

tions (Kinzey, 1999). Due to limited personnel, they might have to forgo opportunities to collabo-

rate with other entities in order to prioritize imminent client demands, even though partnering

with other organizations could help them expand service capacity over the long term. It is possible

that the presence of human resource capacity to collaborate with other entities may not necessarily

mean the organization will initiate and sustain collaborations. However, absent or limited human

resource capacity can preclude small nonprofits from reaping the benefits of collaboration and

may ultimately exacerbate the gaps between small and large nonprofits in terms of available

resources and service quality.

Surprisingly few studies have examined the human resource capacity of small nonprofits and

their collaborative efforts, let alone the relationship between the two. To advance our understand-

ing of small nonprofits and explicate the dilemma they face, this study seeks to examine (a) the

current status of human resource capacity in small human service nonprofit organizations; (b) the

extent to which these organizations are engaged in formal collaborations, informal networks, or

both types of relationships; (c) the relationship between human resource capacity and an organiza-

tion's participation in formal collaborations; and (d) the relationship between human resource

capacity and the formality of collaboration (formal, informal, or both formal and informal) an

organization is part of.

In the next section, we first define the concepts of formal collaborations and informal net-

works and then provide a brief background of the research conducted to date on nonprofit collabo-

rative relationships. We also highlight the significance of understanding the challenges that small

nonprofits face. Next, we present survey data and empirical methodology, followed by empirical

results. Finally, we discuss the implications of our findings, limitations, and future research

directions.

84 KIM AND PENG