An increasing number of social ventures are for-profit companies (i.e., for-profit social ventures) that seek to advance a social cause while making a profit. In a series of seven studies, this ...research investigates consumer support for organizations as a function of their social mission and profit orientation. The impact of profit orientation on consumer support depends on the prominence of the organization’s social mission. For organizations with a prominent social mission, profits are interpreted as a signal of greed; absent a prominent social mission, a for-profit orientation can instead imply greater competence. As a result, consumer support of for-profit social ventures suffers in comparison to both nonprofits and traditional for-profits—a downside to the organizational benefits of for-profit social ventures identified in prior research. In addition, this research investigates organizational factors—including excessive organizational spending, profit perceptions, and operational efficiency cues—that alter greed perceptions and consequently support for for-profit social ventures. Together, this research sheds light on consumer reaction to organizations that support social causes, with implications for the social venture marketplace, including the nonprofit versus for-profit quandary faced by social entrepreneurs.
Nonprofit organizations (NPOs) becoming business-like is a contested issue. Some understand the adoption of business-like practices by NPOs as a case of adopting rational myths through institutional ...isomorphism and thus potentially dangerous for NPOs’ ability to fulfill their unique societal roles. Others are more optimistic, arguing that technical rationality is possible in the adoption of business-like practices, and that such practices can therefore support NPOs in fulfilling a wide range of societal roles. Drawing on survey data of NPOs in Flanders, we examine the relationship between the extent to which NPOs use business-like practices, and the extent to which they engage in various societal roles. We find that business-like practices are weakly related to NPOs’ societal roles. All roles are positively related to nonprofit managerialism and unrelated to NPOs’ reliance on commercial funding. Our results suggest that a certain optimism regarding the rational use of business-like approaches is justified.
The study of nonprofit advocacy has evolved significantly over the past two decades, yet gaps still remain in our understanding of the processes and roles of nonprofit organizations in policymaking ...and policy change. In part, these gaps may be exacerbated by limitations in the methodologies and research designs used to examine advocacy, despite the growing scholarship base. To investigate this possibility, this article reports the findings of a systematic literature review of 264 scholarly articles that examine the antecedents, processes, and/or outcomes of nonprofit advocacy. The sampling method relies heavily on scholarship published in six leading nonprofit and public administration journals. Although theory suggests that nonprofit organizations have a vital role in facilitating policy processes, much of the advocacy research relies upon a limited form of research questions and methods. Findings also reveal a need for greater precision in describing data, design, and methods, and suggest a need for clearer, validated measures of both nonprofit advocacy efforts and the resulting outcomes. Finally, we suggest new areas for nonprofit advocacy research, including investigating new venues, different levels of analysis, employing emerging research methods, and examining advocacy over time.
We examine relations between board size, managerial incentives and enterprise performance in nonprofit organizations. We posit that a nonprofit's demand for directors increases in the number of ...programs it pursues, resulting in a positive association between program diversity and board size. Consequently, we predict that board size is inversely related to managerial pay-performance incentives and positively with overall organization performance. We find empirical evidence consistent with our hypotheses. The number of programs is positively related to board size. Board size is associated negatively with managerial incentives, positively with program spending and fundraising performance, and negatively with commercial revenue, in levels and changes.
► Examines relations between nonprofit board size, managerial incentives and performance. ► Finds that number of programs is positively related to board size. ► Board size is negatively associated with managerial incentives. ► Board size is positively related to program spending and fundraising performance. ► Board size and programs are negatively related to commercial revenue and positively to donations.
We examine whether donors reward nonprofit organizations that report better governance. From a sample of 10,846 organizations from 2008 to 2010, we first identify seven nonprofit governance ...dimensions using factor analysis. We then test whether the quality of governance influences donor decisions by including the seven governance factors in the standard donor's demand model. We find consistent evidence that donations and government grants are positively associated with six of the seven factors that capture good governance, including formal written policies (e.g., conflict of interest), independent audits and audit committees, review and approval of executive compensation, board oversight (e.g., board independence), management characteristics (e.g., no related parties), and accessible financial information. Our results have implications for nonprofit managers and regulators. Moreover, mandatory disclosure of governance policies for nonprofit organizations provides an interesting contrast to mandatory adoption of governance policies for publicly traded companies.
In this empirical study, we examine whether systematic differences exist between government contracts with nonprofit and for-profit service providers. Based on principal–agent theory, we examine the ...potential comparative advantage of nonprofit organizations over for-profits in two areas: contracting process and contract performance. We test hypotheses using data from a national survey of local government contracts with private service providers. The results provide some support for the propositions that public officials trust nonprofits more than for-profits and grant them additional discretion. Even stronger support is found for the propositions that nonprofits are monitored less than for-profits and are awarded contracts of longer duration and for services characterized by higher levels of task uncertainty than those awarded to their for-profit counterparts. We find no significant differences in performance between nonprofit and for-profit contractors in terms of cost, quality of work, responsiveness to government requirements, legal compliance, or customer satisfaction.
This article considers one mechanism that could create a clearer accountability path between nonprofits and their beneficiaries: Outcome measurement. Outcome measurement focuses attention on a ...nonprofit’s beneficiaries and whether they are better off as a result of the nonprofit’s work. The article analyzed 10 outcome measurement guides targeted to nonprofits, totaling more than 1,000 pages of text. The analysis shows that the guides were neither uniform in the conceptualization of nonprofit beneficiaries nor in how they directed nonprofits to use outcome measurement with their beneficiaries. Despite scholars’ suggestion that a nonprofit’s relationship to their beneficiaries is a key accountability relationship, the guides suggest that beneficiaries have an ambiguous standing, relative to other stakeholders, in the nonprofit accountability environment.
In celebration of Nonprofit and Voluntary Sector Quarterly’s 50th anniversary, we present a bibliometric analysis of nonprofit research published between 1999 and 2019, within and outside of three ...core nonprofit journals—NVSQ, NML, and Voluntas. We seek to understand which journals, across scientific domains and social science disciplines, inform nonprofit research in one of three ways, by (a) publishing articles, (b) citing the three core journals, or being cited in these core journals. We found that nonprofit research published in economics and social sciences journals has kept pace with a large increase in indexed research. Meanwhile, though the core nonprofit journals robustly cite and are increasingly cited by business and management and public administration journals, they are less engaged with other social science disciplines. We discuss ways that the core journals could increase their visibility and penetration into these other disciplines and highlight perspectives potentially missing from the core journals.
Nonprofits and Business Harris, Margaret
Nonprofit and voluntary sector quarterly,
10/2012, Letnik:
41, Številka:
5
Journal Article
Recenzirano
Odprti dostop
Although the field of nonprofit studies now encompasses a substantial body of literature on the relationship between governmental and nonprofit organizations, the relationship between the business ...and nonprofit sectors has been less addressed by specialist nonprofit scholars. This Research Note aims to encourage further studies by nonprofit scholars of the business-nonprofit sector relationship. It looks at descriptive evidence to date, proposes a tentative resource-based framework for understanding how nonprofits and business relate to each other in practice and suggests some initial directions for developing a subfield within nonprofit studies.
Climate change is increasing the likelihood and magnitude of disaster impacts. The nonprofit sector’s ability to address disaster survivors’ needs will become an increasingly important aspect of ...adapting to a changing climate. Disaster recovery also provides time for nonprofits to affect community resilience to future disasters and climate change. This article analyzes a unique phenomenon of the sector during disaster recovery: Long-term Recovery Groups. These groups are increasingly encouraged by government and national nonprofits, yet little academic research exists on them. We assess the existence and location of groups, their missions and tasks, and their legal structure. We find heterogeneity in structure and location but similarity in stated goals of addressing failures of government and private sector recovery practices. These groups emerge, as expected, in areas with disaster losses and in areas with slightly greater social vulnerability. Most groups, though, miss the opportunity to include climate change as part of their mission.
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