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1 – 10 of 520Ernan E. Haruvy and Peter T.L. Popkowski Leszczyc
This paper aims to demonstrate that Facebook likes affect outcomes in nonprofit settings. Specifically, Facebook likes influence affinity to nonprofits, which, in turn, affects…
Abstract
Purpose
This paper aims to demonstrate that Facebook likes affect outcomes in nonprofit settings. Specifically, Facebook likes influence affinity to nonprofits, which, in turn, affects fundraising outcomes.
Design/methodology/approach
The authors report three studies that establish that relationship. To examine social contagion, Study 1 – an auction field study – relies on selling artwork created by underprivileged youth. To isolate signaling, Study 2 manipulates the number of total Facebook likes on a page. To isolate commitment escalation, Study 3 manipulates whether a participant clicks a Facebook like.
Findings
The results show that Facebook likes increase willingness to contribute in nonprofit settings and that the process goes through affinity, as well as through Facebook impressions and bidding intensity. The total number of Facebook likes has a direct signaling effect and an indirect social contagion effect.
Research limitations/implications
The effectiveness of the proposed mechanisms is limited to nonprofit settings and only applies to short-term effects.
Practical implications
Facebook likes serve as both a quality signal and a commitment mechanism. The magnitude of commitment escalation is larger, and the relationship is moderated by familiarity with the organization. Managers should target Facebook likes at those less familiar with the organization and should prioritize getting a potential donor to leave a like as a step leading to donation, in essence mapping a donor journey from prospective to active, where Facebook likes play an essential role in the journey. In a charity auction setting, the donor journey involves an additional step of bidder intensity.
Social implications
The approach the authors study is shown effective in nonprofit settings but does not appear to extend to corporate social responsibility more broadly.
Originality/value
To the best of the authors’ knowledge, this study is the first investigation to map Facebook likes to a seller’s journey through signals and commitment, as well as the only investigation to map Facebook likes to charity auctions and show the effectiveness of this in the field.
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Melissa Intindola and Cari Burke-Kolehmainen
This study aims to provide a timely “first look” at the impact of COVID-19 lockdown restrictions on the financial distress of nonprofits.
Abstract
Purpose
This study aims to provide a timely “first look” at the impact of COVID-19 lockdown restrictions on the financial distress of nonprofits.
Design/methodology/approach
This study uses Internal Revenue Service Form 990 returns, US census information, and Oxford COVID-19 workplace restriction data and utilizes logistic regression to analyze results.
Findings
Nonprofits with greater COVID-19 lockdown restrictions are more likely to experience financial distress, whether measured by a 30% reduction in total, program, management and general, or fundraising expenses. This paper also examines results by subsector using National Taxonomy of Exempt Entities data and finds that the Human Services and Public and Society subsectors drive the full sample results when the authors use total, program, or managerial and general expenses in the measure of financial distress, and the Education and Environment and Animals subsectors drive the results when using fundraising expenses in the measure of financial distress.
Originality/value
Broadly speaking, this paper contributes to the limited research stream examining the impact of crises on nonprofits. More specifically, this study is among the earliest to rely on quantitative data to investigate such effects.
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Tom De Clerck, Leen Haerens, Delfien Van Dyck, Geert Devos and Annick Willem
Professionalization is an important issue in many all-volunteer nonprofit organizations (e.g. recreational sports clubs). Therefore, this study relied on the competing values…
Abstract
Purpose
Professionalization is an important issue in many all-volunteer nonprofit organizations (e.g. recreational sports clubs). Therefore, this study relied on the competing values framework and self-determination theory to investigate whether a newly developed intervention can effectively strengthen the management processes and leadership styles in all-volunteer sports clubs.
Design/methodology/approach
For this purpose, a rigorous non-equivalent pre-test post-test control group design was used. The intervention involved two sessions organized in sports clubs in which internal stakeholders (e.g. board members, coaches, volunteers) were invited to discuss change initiatives aimed at enhancing the organizational processes.
Findings
An effect on both the management processes and leadership styles was found. As for the management processes, the intervention had an impact on the internal processes, with especially the development of an internal communication plan and the annual assessment of the organization's operations being promoted by the intervention. Regarding the leadership styles, the intervention had an effect on the controlling and chaotic leadership style, with leaders becoming less chaotic and controlling in situations in which (respectively) the business plan was established and the tasks were distributed within the organization.
Originality/value
This intervention study adopted an innovative approach to organizational intervention research by focusing on the enhancement of both the management processes and the leadership styles. Its principles are also relevant and valuable to organizations operating in other organizational contexts.
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M. Candace Christensen, María Verónica Elías, Érica Alcocer and Shannyn Vicente
This study aims to illustrate how white supremacy culture can be produced within nonprofit organizations with a mandate to serve marginalized communities and provide practical…
Abstract
Purpose
This study aims to illustrate how white supremacy culture can be produced within nonprofit organizations with a mandate to serve marginalized communities and provide practical suggestions for preventing oppression.
Design/methodology/approach
The site of inquiry was a nonprofit organization in south central Texas that provides social support to queer and trans youth. Through critical ethnography, the researchers evaluated the organization's processes and structure (including hierarchy, decision-making, fundraising and interactions between leaders, partners and affected groups) to explore how the organization perpetuated attributes of white supremacy culture.
Findings
Data reveal that the organization alienates the youth, volunteers and employees through defensiveness, fear of open conflict, paternalism, perfectionism and power-hoarding.
Originality/value
A dearth of research focuses on how white supremacy culture manifests in organizations serving marginalized communities. This paper addresses this gap by focusing on a nonprofit organization in central Texas that supports queer and trans youth. The authors offer recommendations for addressing white supremacy culture in organizations and suggest future research opportunities.
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Arthur Allen, Laurie Corradino and Brian McAllister
The authors examine whether limitations in Form 990 result in zero or understated fundraising and administrative expenses for organizations supported by related organizations…
Abstract
Purpose
The authors examine whether limitations in Form 990 result in zero or understated fundraising and administrative expenses for organizations supported by related organizations. Form 990 does not consolidate financial information of legally separate related organizations, resulting in fundraising and administrative expenses being reported by supporting organizations but not by the supported organization.
Design/methodology/approach
The authors use the IRS Statistics of Income Sample Data Files and compare charities receiving support from related organizations (supported) to non-supported charities.
Findings
The authors find evidence that supported organizations are likely to report zero or understated fundraising expenses and zero administrative expenses. Those receiving related donations are more likely to have zero or understated fundraising expense while those receiving related compensation are more likely to have zero and understated fundraising and administrative expenses. The authors also find evidence that supported organizations receiving greater amounts of related donations and related compensation are also more likely to report zero and understated fundraising expenses as well as zero administrative expenses while greater amounts of related compensation are also associated with understated administrative expense.
Practical implications
Since donors and other stakeholders use Form 990 to evaluate nonprofits, its unconsolidated nature could result in a lack of comparability across organizations and misinformed resource allocation (e.g. donation) decisions. The results also have implications for researchers who use zero and understated fundraising and administrative expenses as proxies for low quality reporting or interpret them as data errors.
Originality/value
The paper examines the extent to which zero or understated fundraising expense reporting (i.e. the fundraising expense puzzle) is associated with supported organizations receiving financial support from related organizations. The authors also expand their examination to zero and understated administrative expenses.
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Niels Sandalgaard and Per Nikolaj Bukh
This study focuses on ratcheting and budget behavior in nonprofit museums. Specifically, the authors examine how performance compared with the budget affects future revenue…
Abstract
Purpose
This study focuses on ratcheting and budget behavior in nonprofit museums. Specifically, the authors examine how performance compared with the budget affects future revenue budgets, and how this differs from the extant literature focused on for-profit organizations. The study focuses specifically on the relationship between museums and their sources of public funding and how this affects how museums prepare budgets.
Design/methodology/approach
Based on four years of data covering 97 state-subsidized Danish museums, the authors analyze budget ratcheting using least absolute deviation (LAD) estimations in the form of median regressions.
Findings
The authors find that when actual revenue from admission charges is below the budget, the decrease in the following year's budget is greater than the increase in the following year's budget when actual revenue from admission charges is above the budget (i.e. the authors find asymmetrical ratcheting).
Research limitations/implications
The findings are based on a specific setting (Danish museums), and the results may not be generalizable to other settings.
Practical implications
This study provides insights into the museum sector and other sectors with similar characteristics and contributes to understanding the differences between museums and for-profit organizations when it comes to budgeting. As private-sector management practices are gaining ground in the museum sector, it is important to learn more about budgeting-related issues in this sector.
Originality/value
The asymmetrical ratcheting the authors find is the opposite of ratcheting typically found in for-profit organizations. The authors attribute the results to the incentive conflict between museums and their public funding sources. The authors point to the museums' dependence on public funding as an explanation for the results and, thereby, extend the knowledge on ratcheting to organizations with different characteristics than traditional, for-profit organizations.
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Also due to the “50+1 rule”, which exists in the German football Bundesliga and was introduced to regulate competition, clubs with a wide variety of legal forms participate. The…
Abstract
Purpose
Also due to the “50+1 rule”, which exists in the German football Bundesliga and was introduced to regulate competition, clubs with a wide variety of legal forms participate. The aim of this article is to explain the consequences of the rule, the dominance of nonprofit organisations in German football and to contribute to the discussion on whether other football leagues should follow this model.
Design/methodology/approach
The study looks at the German Bundesliga with its special 50+1 rule. With reference to stakeholder theory, the management challenges of participants in the Bundesliga are elaborated.
Findings
There are still clubs that participate as purely nonprofit associations, even though from an organisational point of view there are some arguments against this legal form. Due to the 50+1 rule, a nonprofit association has the majority of decision-making powers in each participating organisation. The goals desired by the 50+1 rule, such as “maintaining football as a common good” and at the same time “competitive balance”, do not seem to be achieved.
Originality/value
The article shows that regulation in the leagues appears to make sense and, in the case of the German Bundesliga, has led to participants with different legal forms. However, it also shows that the 50+1 rule is also associated with opposing goals that cannot be achieved in equal measure.
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Chengcheng Song and Echo Lei Wang
The paper examines the key driving factors behind the rapid and uneven growth of social enterprises in China based on Kerlin’s Macro-Institutional Social Enterprise (MISE) model…
Abstract
Purpose
The paper examines the key driving factors behind the rapid and uneven growth of social enterprises in China based on Kerlin’s Macro-Institutional Social Enterprise (MISE) model of social enterprise development, with an emphasis on testing key local institutional factors.
Design/methodology/approach
The study adopts the quantitative method approach. The hypotheses have been tested based on a cross-regional empirical analysis with two national datasets on China.
Findings
This study shows that among the state, market and civil society, local government support in terms of favorable policies is the sole determinant factor driving China’s social enterprise growth. On the other hand, the market is irrelevant and local civil society impedes social enterprise growth. This demonstrates that the current growth model is the result of government intervention.
Research limitations/implications
The datasets have a limited sample size. We suggest that future studies may collect a larger sample size with more comprehensive information. We think this study will encourage more comparative qualitative studies at the local level to reveal the underlying mechanisms of growth.
Practical implications
Since government policy is the determinant factor, the quality and quantity of government-backed incubation programs and platforms would matter the most for social enterprise growth. Our study also helps social entrepreneurs understand what factors matter when they try to develop social enterprises in China. They are advised to work on aspects of gaining legal legitimacy and political support in order to grow the sector.
Social implications
This conclusion suggests that professionals and practitioners should review the implications of the current growth of social enterprises in China, in terms of their sustainability, given their institutional isolation from other sectors.
Originality/value
Current studies have yet to thoroughly explore the role of meso- and micro-institutional factors in social enterprise development, especially in different contexts. With reference to Kerlin’s framework and the tri-sector model, this paper advances the understanding of social enterprise growth in China.
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Casper Hendrik Claassen, Eric Bidet, Junki Kim and Yeanhee Choi
Public sector institutional entrepreneurship efforts may contribute to addressing social challenges by creating an enabling regulatory environment that promotes social enterprise…
Abstract
Purpose
Public sector institutional entrepreneurship efforts may contribute to addressing social challenges by creating an enabling regulatory environment that promotes social enterprise formation and fosters complementarity between the public sector and social enterprises. The outcomes of such public sector institutional entrepreneurship are explored in this study. To assess the outcomes of such public sector initiatives in South Korea, the perspectives of executives (n = 40) of government-certified social enterprises are assessed.
Design/methodology/approach
Several research methodologies were combined, including purposive sampling with an 11-point Likert scale, hierarchical clustering and principal component analysis. The literature on government–nonprofit relations as well as public sector institutional entrepreneurship was leveraged.
Findings
This research results indicate that the enabling regulatory environment with entrenched funding and incubation mechanisms produces mixed-to-positive outcomes if framed with reference to public sector–social enterprise complementarity. The authors identified three perspective-based ideal types that have differential views of isomorphic regulatory pressures, the efficacy of incubation and scaling programs, participation in policymaking and other aspects of public sector patronage.
Originality/value
This study contributes to relating the literature on public sector institutional entrepreneurship and government–third sector relations by empirically assessing how social enterprises attracted by government demand-side signaling to become certified as social enterprises encounter and perceive an ostensibly enabling regulatory ecosystem, with its derivative policies and mechanisms, crafted by the public sector.
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Misun Lee, Ralph S. Brower and Daniel L. Fay
This paper analyzes how a national social enterprise policy encourages the social missions of social enterprises and uncovers the relationships between social enterprise…
Abstract
Purpose
This paper analyzes how a national social enterprise policy encourages the social missions of social enterprises and uncovers the relationships between social enterprise governance and labor equity, an area that has been rarely studied in nonprofit governance studies.
Design/methodology/approach
The study analyzes the effects of four legal requirements for work-integrated social enterprises (WISEs) codified by the Social Enterprises Promotion Act (SEPA, 2007) in South Korea. Then, it relies on panel regression analysis (2020–2022) to examine how the compositions of the governance of WISEs are related to their hiring and wage equity.
Findings
The institutional arrangements required by SEPA have resulted in positive social impacts for most WISEs. However, the results of regression models show that individual participant groups in the WISE governance achieved mixed results depending on the labor issue.
Research limitations/implications
Generally, this research explores the concept of diversity and its utility in nonprofit governance, with a particular focus on targeted diversity policies, demonstrating that governance arrangements influence the success of these policies.
Practical implications
The findings bring new insights for policymakers about “altruistic economic entities.” For practitioners in social enterprises, the results of the regression models underscore the importance of understanding the participant composition of decision-making meetings.
Originality/value
This study sheds light on labor equity, which government-certified social enterprises should achieve from the perspective of nonprofit governance.
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