Suchergebnisse

The literature on nonprofit growth contains a practical ambiguity regarding which types of revenues to cultivate as a start-up nonprofit. The revenue portfolio of a more established organization may be inappropriate (or unattainable) for a new one, but there may be perils in relying too long on sources of nonprofit start-up capital. We posit that nonprofit entrepreneurs choose to mimic larger organizations in their field for growth rather than rely on the revenue mix of their start-up stage. This study uses two different dynamic econometric models to estimate the role of revenue type and other organizational factors in the growth of young and small nonprofits. We find that mimicking the revenue habits of larger organizations is generally (but not universally) advisable, with most conclusions sensitive to subsector.

This research note introduces nonprofit researchers accustomed to the U.S. Form 990 to the Canadian data captured on the T3010 financial form that will soon be available to researchers on a broad scale. Similar to the Internal Revenue Service (IRS) Form 990, the Canada Revenue Agency (CRA) T3010 is an annual information filing required of every Canadian charity that meets certain requirements. However, several elements in the data are unique to the Canadian context, while others are similar to the Form 990 but must be interpreted with attention to differences in definition and accounting practice that might otherwise complicate attempts at cross-national comparisons. Once these elements and the data's limitations are understood, however, the forthcoming datasets will allow rich analysis for researchers and practitioners in areas that are yet unexplored with large data sources.

The nonprofit organizational life cycle literature has traditionally focused on the entry and exit processes; the intermediate organizational life stages between these bookends have received less attention. Almost half of all nonprofits at any given time operate in an early life stage with less than US$100,000 in revenue, minimal overhead spending, and no paid managers. This study examines the process by which nonprofits leave the small, informal, startup phase and begin the next life stage characterized by growth and formalization. We identify financial and organizational characteristics that predict whether the nonprofit will successfully transition out of the early and informal life stage. We find that investments in professional fundraising and access to government funds are predictive of the transition out of the start-up phase, while traditional financial predictors such as revenue concentration, equity ratio, fixed cost ratios, and the accumulation of unrestricted assets have modest to no effects.

AbstractThe nature of the interactions between the organizational entities involved in contracting receives less attention than the efficiency of the procurement and distribution of those services. This is particularly true in periods of policy turbulence, where tensions are high and environments unstable. This study builds on earlier theoretical contributions by cataloging almost 100 different strategies in interviews with state agencies and related policy experts, then distilling important traits and modifying earlier analytical constructs to reflect the empirical findings. The result is a new understanding of the range of relationships and extent of collaboration in contracting interactions at different points in the policy process. This study contributes to the literature not only through the elicitation and nature of these contracting strategies but also by contributing to the theoretical underpinnings of both collaboration in contracting and how such relationships provide a means of navigating periods of policy turbulence.

The nonprofit starvation cycle is a debilitating trend of under-investment in organizational infrastructure that is fed by potentially misleading financial reporting and donor expectations of increasingly low overhead expenses. Since its original reporting in 2004, the phenomenon has been referenced several times, but seldom explored empirically. This study uses 25 years of nonprofit data to examine the existence, duration, and mechanics behind the nonprofit starvation cycle. Our results show a definite downward trend in reported overhead costs, reflecting a deep cut in administrative expenses partially offset by an increase in fundraising expenses. The organization's size is instrumental to its behavior, with a sharp rise in reported overhead occurring when revenues equal $100,000, but diminishing at $550,000. Finally, the brunt of the cuts have fallen on nonexecutive staff wages and professional fees, which heightens the concern of potentially ill effects derived from a fixation on overhead cost reduction.

The movement to democratize data and the advent of virtual research teams provides a near-perfect opportunity for an explosion of comparative nonprofit research. This manuscript provides a useful framework for scholars interested in utilizing comparative nonprofit data. By documenting how the lived context of the data is influenced by governmental, institutional, and social forces, we illustrate how effective comparative data work will involve knowing both the how (data details) and the why (institutional history) of the data elements. We offer three extended examples to illustrate the complexity of comparative data: the definition of nonprofit, the concept of governance, and the definition of financial liability. This approach provides a thoughtful path of not only careful empirical work but also the route to theoretical improvements as well. Furthermore, comparative work also leads the researcher to question assumptions and document the processes which shape the data, even within their singular context.