Impact of the EU Structural Funds on Financial Capacities of Non-profit Organizations

To fulfil their role, non-profit organizations (NPOs) need sufficient capacities. These include, first and foremost, financial capacity. EU Cohesion Policy commands financial resources of 351.8 bn. EUR. The EU is also willing to support NPOs from this source. With such considerable funding, the research questions arise: How much money have NPOs received? What are the effects of such assistance on the financial capacities of NPOs? On a sample of 2715 non-profit organizations in the Czech Republic, we have found that EU subsidies have a positive impact on financial capacities, measured as real assets. It is caused by using EU funds for investment. We have not proved an effect on short-term financial capacities measured on revenues. Moreover, the distribution of financial support among PBOs is unequal as 4% of NPOs collected 80% of subsidies due to differences in skills among NPOs’ managers.     

NPO Financial Statement Quality: An Empirical Analysis Based on Benford’s Law

In order to assess the accuracy of the figures reported in NPOs’ financial statements, I perform a digital analysis on Belgian non-profit organizations’ financial statements for accounting years 2007 up to 2012. Specifically, I compare observed frequencies for digits in the second-from-the-left position with expected frequencies based on Benford’s Law. Results based on the full sample indicate that observed frequencies strongly conform to Benford’s Law (and thus suggest a high degree of accuracy of the figures reported in NPOs’ financial statements). Nevertheless, I note statistically significant deviations from Benford’s Law (both for the entire distribution and at the individual digit level). The largest deviation is noted for zeroes in the second position (i.e., a significantly positive deviation), which can be explained based on humans’ reliance upon so-called cognitive reference points. Considering different sub-samples, I note that observed deviations from Benford’s Law are largest for the smallest non-profits and those non-profits that rely most heavily on grants and/or donations.     

Role of Canadian user-led disability organizations in the non-profit sector

User-led disability organizations have emerged as an important force in the non-profit sector. While much is known about the traditional disability organizations that began to proliferate in the 1950s (e.g. National Institute for the Blind), relatively less is known about the user-led organizations that emerged in the 1970s. Using a collective case study approach, phase 1 was a policy review and key informant interviews with members of user-led and traditional organizations and government. Phase 2 surveyed affiliates of user-led organizations. Phase 3 integrated the findings from phases 1 and 2. Major themes were that user-led organizations: reflected a new paradigm and gave voice to people with disabilities; had a unique role in systemic advocacy and shaping policy; that leadership is critical but in need of rejuvenation; had links with other organizations which provide a collective voice, solidarity and hope; had diverse strategies for local resource mobilization; had financial support from government which was both constrained and mobilized.     

Application of an organizational evaluation capacity self-assessment instrument to different organizations: Similarities and lessons learned

Organizational evaluation capacity (EC) has received significant attention in the evaluation research literature in the past decade. Much of the focus has been on defining organizational evaluation capacity, which can be thought of as the competencies and structures required to conduct high-quality evaluation studies (capacity to do), as well as the organization's ability to integrate evaluation findings into its decision-making processes (capacity to use). This paper seeks to contribute to this growing body of knowledge through a multiple case study of EC across three different organizations (e.g., non-profit, provincial government and federal government, herein named sectors); the novelty of this particular study is that each case study is based on the use of a common measurement tool developed by Bourgeois, Toews, Whynot and Lamarche (2013). The cross-case analysis presented in the paper reveals that evaluation capacity tends to be higher, both in terms of capacity to do and capacity to use, in organizations that have developed systematic mechanisms to institute an evaluation culture within their walls. Interestingly, however, we also found that capacity to use does not first require capacity to do, as evidenced in the non-profit organization under study.     

Resource Dependence In Non-profit Organizations: Is It Harder To Fundraise If You Diversify Your Revenue Structure?

This article explores how fundraising efficiency is affected by changes in diversification of revenues in non-profit organizations. It uses random effect regression and Arellano–Bond models to study this phenomenon in a sample of 10358 US non-profits during the 1997–2007 period. We find a negative impact on fundraising efficiency when NPOs alter their locus of dependence and change their pattern of diversification. This effect is impacted by organizational size and industry. Previous studies have suggested that income heterogeneity is associated with organizational stability and financial strength. Using a change (versus level) model of funding diversity, our work shows that increased diversification leads to a higher operational inefficiency that could be penalized by potential donors.     

Social media and organizational visibility: A sample of Fortune 500 corporations

This study explores the factors that drive organizational social media visibility. Using a sample of Fortune 500 companies and influential non-profit organizations, findings reveal that mainstream media coverage significantly affects social media visibility whereas organizations’ social media use patterns have limited impact on overall organizational visibility. Implications for both the practice of public relations and further theorizing about social media studies are discussed.     

“…Do it with joy!” – Subjective well-being outcomes of working in non-profit organizations

Working in non-profit organizations has been shown to be good for individuals’ satisfaction with their jobs despite lower incomes. This paper explores the impact of non-profit work on life satisfaction more general for the British Household Panel Survey (BHPS) and finds a significant positive impact the size about more than a fourth of that of getting widowed. This effect is quite uniform across the subjective well-being distribution, and thus exists also for those who are already happy. Shadow prices peg this effect at around 22,000 GBP p.a., the average amount of equivalent net household income in the sample analyzed (which is roughly 27,000 GBP p.a.). The positive effect can be explained by third sector workers enjoying their day-to-day activities more, being (affectively) happier and feeling that they are playing a useful role in their lives.     

Deconstructing divisions: Cultural schismogeneses as sources of creativity in organizations

Drawing on Gregory Bateson's theory of cultural schismogenesis, the authors analyse such processes within two organizations: the Birdwatching and Bird Study Association of Slovenia and VU University Amsterdam. Both cases illustrate internal cultural divisions typical for non-profit organizations whose goals go beyond optimizing financial profits and can thus be interpreted in various, sometimes conflicting, ways. The article demonstrates how organizational members, through continuous processes of creative deconstruction, transform organizations by simultaneously creating both schisms and coalitions. This shows that, although cultural divisions may at first glance seem destructive, they are at the same time sources of creativity that permit organizational renewal and growth.     

Non-profit institutions in a flow of funds framework

The benefits of providing a separate accounting for non-profit organisations in the financial accounts of the United States are discussed. At present, national economic accounts in the US include non-profit organisations with individuals in the household sector; separate information on the financial activity of non-profit institutions until now has not been available. In this paper, aggregate statistics from federal government tax-exempt filings for non-profit institutions are put into a US flow-of-funds framework. The data for the 1982–1988 period indicate that non-profit institutions accounted for a significant and growing proportion of assets of the household sector in the United States. Their liabilities were also a surprisingly large share of the household sector total. Moreover, funds supplied by the non-profit sector for investment were in some years comparable to funds made available by several important groups of non-depository financial intermediaries. Separate accounting for non-profit organisations within national economic accounts would be likely to reveal an important channel for investment financing in the United States and would significantly improve our ability to measure and analyse the financial activity of individuals by allowing for a purer household sector.The analysis and conclusions set forth are those of the authors and do not necessarily indicate concurrence by Salomon Brothers, the Board of Governors, Federal Reserve Banks or other members of their staffs.     

Parental Socialization and Financial Capability Among Chinese Adolescents in Hong Kong

The financial capability of adolescents is important because it establishes cognitive and behavioral patterns that enable them to manage their financial resources in later life. Analyzing the data collected in a sample of 946 adolescent Chinese students from Hong Kong (55.7% female, mean age?=?14.5, range 12–18 years), the present study found parental socialization (i.e., direct parental teaching and parental financial norms) influenced adolescents’ financial behavior through via financial learning outcomes (i.e., subjective financial knowledge, adoption of modeled parental financial behavior, and objective financial knowledge) and financial attitudinal variables (i.e., perceived behavioral control and financial attitude). The findings suggest parents should intentionally teach financial knowledge, and convey clear and positive financial norms to adolescents.     

Revenue diversification among non-profits

Although the non-profit literature has grown substantially, the issue of how revenue diversification affects non-profits has not been fully explored. This paper presents several disciplinary perspectives regarding the financing of non-profits, what determines their ability to diversify, and the consequent effects on their behaviour. It first develops an index for measuring revenue diversification and applies it to a national sample of charitable non-profits. The results indicate that, while the perception that most non-profits rely on a single revenue source is exaggerated, the institutions in our sample have somewhat concentrated revenue. Our findings also suggest that the activity of a non-profit and the proportion of its expenditures that it devotes to fund-raising affect its ability to diversify its revenues concentration. While a number of anomalies exist, the weight of our evidence suggests that diversified revenue sources are more likely to be associated with a strong financial position than are concentrated revenue sources. Researchers interested in studying the life-cycle of non-profits, the factors that give rise to stability and growth, and the constraints on non-profit behaviour would do well to consider the diversification index presented in this paper.     

Exploring Organizational Form in the Affordable Rental Housing Sector

The nature and benefits of different kinds of affordable rental housing providers, and particularly for-profit housing developers, have been contested by practitioners and scholars. We contribute to this debate by exploring whether the missions, the resources harnessed to build housing, the human resources, and the involvement of residents in decision-making differ based on organizational form. Using case study design, we examine two third sector organizations (a zero equity cooperative and a community-based non-profit) and a for-profit located in Canada. The two third sector organizations had less knowledge of housing construction and harnessed in-kind contributions compared to the for-profit. These organizations, and again in contrast with the for-profit, also pursued social missions, including supporting other organizations and sharing their experiences related to housing construction. The zero equity cooperative featured greater resident involvement in the development and the management of the housing compared to both the community-based non-profit and the for-profit.     

Strengthening child and youth programs: A look at inter-organizational mentoring strategies

Community-based non-profit organizations rarely have access to research or evaluation evidence to inform their programs and often lack the capacity to gather or use this information independently. In 2016, Wisdom2Action—a network of knowledge mobilization (KMb) experts, policy makers and service providers across Canada—launched an inter-organizational mentorship program to facilitate the implementation and sharing of best and promising practices within community-based programs for young people. This article outlines the findings from a developmental evaluation of eight mentoring relationships. Drawing on the Promoting Action on Research in Health Sciences (PARiHS) model of KMb, we look at mentoring as a type of facilitation that supports the increased use of evidence and evaluation information by non-profit organizations and identify key themes that support effective organizational mentorship in this sector. Findings reinforce the importance of establishing connected relationships and understanding context in mentoring relationships, creating adaptive and responsive work plans, ensuring consistent communication, and maintaining a focus on capacity-building if knowledge mobilization is to occur.     

Computerizing the Small Non-Profit

Summary

Small non-profit organizations that computerize their operations face a number of problems because of their lack of financial resources and technically trained personnel. A group of computer consultants discuss typical experiences of computerization that bear on organizational and personnel issues, the organization's relation to consultants, and training. Factors emphasized are the importance of using informal computer champions; management involvement; obtaining second opinions on consultants' recommendations; paying consultants after satisfactory results are obtained; and training staff in small, incremental steps growing out of their job functions.     

The Slaughtered and the Survivors: Collaboration Between Social Economy Organizations as a Key to Success in Times of Financial Crisis

The objective of this study is to analyze the aspects that allowed a critical part of Social Economy Organizations (SEOs) to survive a recession period, especially participation in collaborative networks. The financial stress of an SEO will depend on the resources and capabilities available to the organization. To analyze the financial stress of Spanish SEOs, we defined a sample of 714 SEOs. Approximately half of these organizations suffered from financial stress in the analyzed period (2009–2012). The results obtained in this study reveal the existence of three factors that distinguish organizations under financial stress: (a) a high dependence on government funding; (b) changes in the relationship between staff and volunteers; and (c) a lack of access to markets. The combination of these three elements results in an unsustainable situation for the organization. The development of a collaborative profile increases the SEO’s probability of surviving the adverse manifestations of its environment.     

The relationship between Web site design and organizational responsiveness to stakeholders

The Internet and World Wide Web are emerging as important public relations tools for both profit and non-profit organizations. Little evidence exists, however, about the extent to which new technologies help organizations build relationships with publics. This article examines the relationship between Web site design and organizational responsiveness to stakeholder information needs. Two organizational types with differing levels of resource dependency (general environmental activist and watchdog groups) are examined. Our analysis assesses each organizational type’s general dialogic capacity as well as the responsiveness of the organizations to requests for information.     

Public reporting: A neglected aspect of nonprofit accountability

Nonprofit organizations have a compulsory external accountability (largely involving financial reporting) to government agencies such as the Internal Revenue Service and state regulators. They also have a pragmatic “must‐do” accountability to their funders, clients, and other obvious stakeholders. But are nonprofits also accountable to the public at large? If so, how can such accountability be implemented, given the diffuseness and breadth of the public as an audience? This article suggests that nonprofits should consider the citizenry as a stakeholder, if only due to the substantial taxpayer subsidy of the sector. The theory of public reporting that emerged in public administration literature beginning in the 1920s and 1930s can be helpful. Using principles, templates, and examples from public administration, nonprofit organizations can pursue more vigorous public reporting as one method to increase citizen confidence in their activities and in the sector as a whole.     

Participatory Design in Women’s Organizations: The Social World of Organizational Structure and the Gendered Nature of Expertise

Participatory design is an approach to designing technological systems that differs from traditional approaches to design in many respects. The goal of participatory design is to encourage users of technological systems to actively participate in the process of designing technological systems. The end goal of participatory design is to enable users of technological systems to articulate their needs, and to develop technological systems that account for those needs. In this paper I attempt to extend the analysis of gender as a factor in participatory design initiative by focusing on the challenges of implementing participatory design in the context of non-profit women’s organizations. The context for my discussion is set by outlining a recent initiative to design a nationwide feminist computer network in Canada. Scholarship on participatory design, feminist organizing and the implementation of computer systems in non-profit organizations is discussed in relation to original research carried out in the Canadian province of Newfoundland. Organizational structures that differentiate feminist non-profit organizations from other organizational forms and the gendered nature of expertise are identified as particular challenges that must be addressed in order for participatory design to be successful when women’s groups are the participatory designers.     

Tax-based research and data on non-profit organisations

Tax-exempt, non-profit organisations represent a significant and growing sector within the US economy. Between 1975 and 1990, assets of tax-exempt organisations increased in real terms by over 150 per cent while the revenue increased by over 227 per cent. This compares to a growth in real GDP of 52 per cent over the same period. A variety of tax policy issues on tax-exempt organisations and the non-profit sector can be addressed using several sources of data collected by the IRS from federal information and tax returns of exempt organisations. The Statistics of Income (SOI) Division, using sample data, conducts studies of many of the different components of the tax-exempt sector, including non-profit charitable organisations, organisations exempt under sections 501(c)(4)-(c)(9), private foundations and 4947(a) charitable trusts, and the unrelated business income of tax-exempt organisations. Income statement, balance sheet and other financial data, as well as a great amount of non-financial information, are collected in these SOI studies. The primary purposes of this article are: first, to document the role of the non-profit sector in the US economy and the evolving growth and change within the sector from the mid-1970s through to the present; and, second, to describe the ongoing SOI studies of tax-exempt organisations, the products and services available through SOI, and the future statistical plans at SOI for data collection and analysis of tax-exempt organisations and the non-profit sector.     

Revisiting the Prediction of Financial Vulnerability

Whether or not a nonprofit organization is vulnerable to financial problems is a concern of all stakeholders of the organization. Recently, Greenlee and Trussel (2000) and Trussel and Greenlee (2001) expanded Tuckman and Chang's work (1991) to predict which organizations are financially vulnerable. This article extends the work of these authors by developing a model of financial vulnerability that includes four financial indicators, controls for the sector to which an organization belongs, and is based on a sample of over ninety‐four thousand organizations. The model is useful as a screening, monitoring, and attention‐getting device.