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1 – 10 of 912Sarah Willey, Matthew Aplin-Houtz and Maureen Casile
This manuscript explores the value of mission statement emotional content in the relationship between money raised by a nonprofit organization through fundraising efforts and the…
Abstract
Purpose
This manuscript explores the value of mission statement emotional content in the relationship between money raised by a nonprofit organization through fundraising efforts and the money spent. It proposes the emotional content of a mission statement moderates money spent and earned to ultimately to impact how much revenue a nonprofit makes through fundraising.
Design/methodology/approach
The manuscript evaluates the qualitative turned quantitative data (via text mining [TM]) in mission statements from 200 nonprofits serving the homeless sector via a moderation analysis. After segmenting the sampled nonprofits by gross revenue, the authors analyze the impact of the positive and negative emotional tone in each group to determine how the content of a mission statement impacts organizational revenue.
Findings
The paper provides empirical insights about how the emotional polarity of a mission statement influences money earned through fundraising. However, the positive and negative tone of a mission statement impacts organizations differently based on size. For nonprofits that report an annual revenue of less than $1 million, a positive tone in the mission statement results in higher revenue. Conversely, nonprofits that report over $1 million earn less revenue with a positive tone in their mission statement.
Research limitations/implications
Owing to the specialized group sampled, the findings possibly only apply to the sampled group. Therefore, researchers are encouraged to test the relationships found in other areas of nonprofits. However, the implications of mission statement polarity influencing financial performance in any population should be of keen interest to practitioners when crafting mission statements.
Practical implications
The finding that mission statement emotional tone influences the financial performance of a nonprofit has direct implications for the effective delivery of services in the nonprofit realm. Leaders of nonprofits can use the study’s findings to position their organizations to capture potential needed revenue in the crafting of their mission statements.
Originality/value
This paper uniquely exposes the moderating impact of the emotional tone in mission statements in relationship with financial performance.
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Ernan 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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Nonprofit organisations (NPOs) are an increasingly fundamental part of our society. Meeting rising demand requires NPOs to attract enough resources, especially volunteers, to…
Abstract
Purpose
Nonprofit organisations (NPOs) are an increasingly fundamental part of our society. Meeting rising demand requires NPOs to attract enough resources, especially volunteers, to enable service delivery. This paper aims to adopt a novel theoretical lens to reframe this marketing challenge to inform practice and extend theory.
Design/methodology/approach
Practice-based exploration of a volunteer-enabled NPO, parkrun, through in-depth interviews and secondary source analysis.
Findings
The research identified that the brand community connects volunteers through three inter-connected levels. The big idea of parkrun, the focal brand, resonated with people through being “on their wavelength”, something they believed in. The local, physical event meant engagement was “on their patch”, anchored in place. Finally, the brand community enables people to volunteer “on their terms”, with fluid roles and flexible levels of commitment.
Research limitations/implications
Not all NPOs have service beneficiaries who are able to volunteer, services with different volunteering roles, or operate through a local physical presence. However, taking a focal brand approach to consider the brand community through which people volunteer for an NPO, the practices that reinforce that community, and how to offer volunteers significantly greater flexibility in both role and commitment presents an opportunity for NPOs to rethink how volunteering works for them in the future.
Practical implications
Clear recommendations for practice include the opportunity to integrate service beneficiary with service delivery enabler (volunteer) to strengthen the implicit social contract, increasing participation to deepen the social identity felt towards the brand, and key practices that reduce barriers to volunteering.
Originality/value
The paper extends volunteering theory from the traditional individual needs approach to a focal brand community perspective. The marketing challenge of attracting volunteer resources to NPOs is understood through rethinking the boundaries between service beneficiaries and service enablers, anchored in social identity theory. It provides clear recommendations for practice through reframing the recruitment challenge.
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This research paper takes an interdisciplinary approach, drawing from empirical data, to explore the relationship between organisational change management and strategic leadership…
Abstract
Purpose
This research paper takes an interdisciplinary approach, drawing from empirical data, to explore the relationship between organisational change management and strategic leadership to promote growth in value-driven, membership-based organisations through a qualitative multi-case-based analysis and to provide a discussion on the philosophies and practices of leadership teams which underpin successful organisational change within such not-for-profit organisations.
Design/methodology/approach
Each participating organisation had 700+ members, had previously experienced prolonged periods of auditable membership growth and employed distinctly different organisational models to facilitate growth. A qualitative multi-case study approach was adopted informed by 32 interviews with eight leadership teams. A thematic analysis provided a comparative review of responses.
Findings
All case study organisations emphasised the significance of strategic leadership teams and clearly communicated vision and flexible organisational structures as central to their strategic planning and subsequent growth. This builds on previous research which has explored organisational change in not-for-profit organisations and strategic leadership in not-for-profit organisations, which explores the strong linkages between the roles and functions of strategic leadership, organisational structures designed with the adaptive capacity to manage continuous and convergent change and their impact on sustained growth. Such linkages are more specifically supported by extended tenure of office for those in senior leadership roles, clear delineation of roles and responsibilities, the adoption of an outward growth-oriented focus and adaptable structures that encourage wider participation in leadership and management functions for the fulfilment of the organisation's mission. Most significantly, these organisations plan with change and growth in mind.
Practical implications
The findings of this research have transferable value to other not-for-profit, membership-based, value-driven organisations as well as other faith-based organisations, which will help to provide future linkages between leadership structures, decision-making and organisational design and its impact on the not-for-profit organisations' capacity for sustained growth.
Originality/value
This research challenges previous conceptions on UK church growth trends and observes that all the case organisations presented different organisational structures which were intentionally designed, context specific and developed by leadership teams with sustained growth in mind. Results from psychometric testing of participants confirmed that senior leaders of large value-driven organisations that have demonstrated a capacity for sustained growth are consistently likely to exhibit leadership characteristics which demonstrate a balanced capacity for personal humility and a committed resolve or professional will, which is also reflected in a pragmatic-type leadership style, building on previous psychometric testing research in this context.
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