Nonprofit organizations draw financial support from multiple sources including contributions, earned income, government support, and returns on investment, but the source of variation in income ...portfolios is not well understood. The authors draw on a ‘‘benefits theory of nonprofit finance’’ to illuminate the relationship between the programs and services that a nonprofit provides and the sources from which it obtains income. The authors analyze detailed revenue and expenditure data from eighty-seven Jewish Community Centers, estimating models that show significant associations between expenditures on particular types of services and the sources of an organization’s revenue. Specifically, expenditures on services of a more private goods nature are associated with greater reliance on earned income while expenditures on services of a more public goods nature are associated with greater reliance on charitable sources. Results are potentially important for nonprofit management practice because they suggest closer coordination of an organization’s resource development strategy with its programming.
In an era of dramatic financial challenges, pressure is growing for U.S. nonprofit organizations to consolidate. Yet, we know little about the current concentration of the sector and even less about ...the degree of competition in various nonprofit subsectors. In this paper we offer a detailed analysis of concentration patterns across the sector and analyze variations in these patterns by subsector and metropolitan areas. It is well known that measuring concentration is not identical to assessing effective competition and is but a starting point for a more thorough competitive analysis. An important distinction is made between the concentration of resources within larger subsector organizations and inequality in the distribution of resources across those organizations. Some subsectors may be concentrated yet behave competitively because resources are distributed relatively equally among several large organizations. By contrast, other concentrated subsectors may behave less competitively because resources are very unequally controlled by a few organizations. Understanding the patterns of both concentration and inequality in the nonprofit sector is likely a prerequisite to drawing defensible conclusions about the degrees of competition in the sector and the desirability of further consolidation. This analysis has implications for both public policy and philanthropy. It bears on the issues of whether antitrust policy should be forcefully applied to the nonprofit sector, whether government funding programs should encourage nonprofit consolidation or competition, and whether philanthropic institutions should implore nonprofit organizations to consolidate further or to compete more vigorously.
Nonprofit organisations finance themselves in diverse ways. Recent scholarship suggests that nonprofit income composition is related to the kinds of service benefits an organisation provides. Testing ...this idea has been difficult, in part because available data sources do not provide precise descriptions of the nature of service benefits and beneficiaries. The present paper overcomes this limitation by directly examining the missions, services, beneficiaries and finances of a sample of nonprofits through website analysis correlated with financial data from tax forms. The results offer strong support for a benefits-based theory of nonprofit finance. In particular, the public/private nature of services offered by a nonprofit organisation is a significant determinant of the kind and mix of revenue it attracts. This is an important finding, especially in today's challenging economic environment, because it suggests that an organisation's income strategy should be directly related to its programmatic mission.
Cost effective analysis (CEA) is used frequently in health and other fields in which controlled experiments are possible. The problem is, however, that for many activities that are outsourced in ...infrastructure finance, we have no comparison groups, and when comparison groups are present, we have no data on quality, presenting any interested researcher or decision maker with some serious dilemmas. In this article we establish some basic guidelines for the collection and use of quality data, and associate these with our own errors in attempting CEA with a lack of an existing quality measure.
Religious Attitudes and Charitable Donations Eger, Robert J; McDonald, Bruce D; Wilsker, Amanda L
The journal of applied business and economics,
06/2015, Letnik:
17, Številka:
2
Journal Article
Recenzirano
Nonprofit organizations play a vital role in the United States, often providing goods and services to populations where no alternative is available. We expand the understanding of nonprofit ...management by focusing on the influence of an individual's religious attitude on their charitable donations. Using a survey of 1,530 households, we find that religiously conservative individuals contribute more than liberals both in terms of support to religiously affiliated nonprofits and total donations to nonprofit organizations. The findings of this study hold important implications for nonprofits in terms of the types of services they provide and the stipulations placed upon service recipients.
Nonprofits receive funding from multiple revenue sources, including private contributions and earned program revenues. In this article, we hypothesize that the composition of revenues is a result of ...the nature of services provided—specifically whether services are public, private, or mixed in the nature of their benefits. Using subfields from three major fields in the National Taxonomy of Exempt Entities (NTEE), this study divides nonprofits according to service type and estimates the impact of service character on particular revenue streams and overall revenue diversification. Generally, we find that the proportion of revenues generated by earned program revenues is lowest for the category deemed public, highest for those with mostly private benefits, and midway for those classified as mixed. Similarly, the more public a nonprofit’s services, the greater its reliance on donations. We also identify some puzzling results that suggest the need for continued investigation.
Nonprofit organizations draw financial support from multiple sources including contributions, earned income, government support, and returns on investment, but the source of variation in income ...portfolios is not well understood. The authors draw on a "benefits theory of nonprofit finance" to illuminate the relationship between the programs and services that a nonprofit provides and the sources from which it obtains income. The authors analyze detailed revenue and expenditure data from eighty-seven Jewish Community Centers, estimating models that show significant associations between expenditures on particular types of services and the sources of an organization's revenue. Specifically, expenditures on services of a more private goods nature are associated with greater reliance on earned income while expenditures on services of a more public goods nature are associated with greater reliance on charitable sources. Results are potentially important for nonprofit management practice because they suggest closer coordination of an organization's resource development strategy with its programming.
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