Tag Archives: nvsq

Benefit-Based Revenue Streams and Financial Health: The Case of Arts and Cultural Nonprofits

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. A large number of empirical studies have discussed the revenue diversification strategy for nonprofits, but little attention has been paid to the components of revenue portfolios, even though each revenue source flows into a nonprofit with its own characteristics. Drawing on Young’s benefits theory, this study tests the proposition that a nonprofit would be stronger financially if its income portfolio reflected the mix of benefits it provides. We find evidence that the benefit-based revenue strategy is associated with better financial outcomes using the data set from DataArts (2008–2016). Yet, this relationship is not linear, and the positive relationship is seen only when the share of benefit-based revenues is above a certain threshold. A detailed examination reveals that the benefit-based revenue strategy should be employed judiciously, depending on each organization’s own capacity. We discuss the ways nonprofits can employ benefit-based financing while diversifying revenue streams.

Nonprofit and Voluntary Sector Quarterly | https://journals.sagepub.com/action/showFeed?ui=0&mi=ehikzz&ai=2b4&jc=nvsb&type=etoc&feed=rss  

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Understanding the Donor-Advised Fund Giving Process: Insights From Current DAF Users

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. The growing use of donor-advised funds (DAFs) is changing the way many donors give to charity. Despite the increasing influence and importance of DAFs in the nonprofit sector, very little is known about how people actually use them. We conducted 48 in-depth interviews with DAF users, collecting rich qualitative data about why and how donors use DAFs. We use these data to sketch a DAF giving process with four phases and multiple decision points. We highlight some of the common donor strategies that are used with DAFs. Overall, we present evidence of abundant diversity in individual adaptation for giving through DAFs.

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The Prevalence of Ethnic, Cultural, and Folk Nonprofit Organizations in Increasingly Diverse Communities: A Case of Demand Heterogeneity

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. Building on the nonprofit density literature, we examine county-level factors that are linked to the growth of ethnic, cultural, and folk (ECF) nonprofits, a vital but often overlooked subfield of nonprofits. We draw county-level nonprofit, demographic, socioeconomic, and government data from 1995 to 2015 to examine how community factors, particularly immigrant and racial/ethnic composition, are associated with the number of ECFs. We pay particular attention to the influence of Asian and Hispanic populations, the two largest U.S. immigrant groups, and run national-origin subanalyses. Results suggest that ECFs have increased in counties experiencing new immigrant population growth. However, our study suggests that the growth in ECFs has not been evenly distributed across racial/ethnic groups, and there are important national-origin disparities among Asians and Hispanics. We conclude with a discussion of the importance of attending to how ECFs can support the needs of different racial/ethnic groups to better integrate U.S. communities.

Nonprofit and Voluntary Sector Quarterly | https://journals.sagepub.com/action/showFeed?ui=0&mi=ehikzz&ai=2b4&jc=nvsb&type=etoc&feed=rss  

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Charitable Giving in Married Couples: Untangling the Effects of Education and Income on Spouses’ Giving

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. This research note looks beyond the unitary household model and analyzes the influence of household resources by gender on charitable giving. We investigate the intrahousehold variables of income and education and their effects on giving behaviors in married couples. We use data from the longitudinal Philanthropy Panel Study (2005–2017) to examine how spouses’ income and educational differences affect charitable giving behaviors and introduce fixed effects to control for unobserved heterogeneity. Initially, we find a positive relationship between both the husband’s and wife’s earned and unearned incomes and the likelihood and amount of giving by married couples. However, when fixed effects are used, we find women’s earned income to be significantly associated with all forms of giving, showing that women’s labor market earnings disproportionately influence giving behavior. Education is less of a factor in whether couples give and influences giving only when the husband has more education than the wife.

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NGO Roles and Anticipated Outcomes in Environmental Participatory Processes: A Typology

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. Despite the plethora of research on environmental participatory processes, the forms of nongovernmental organization (NGO) involvement in these processes, and the influence of their involvement on participation outcomes, are still under-conceptualized. This article aims to develop a conceptual typology for NGO roles in environmental participatory processes and to suggest how these roles might be associated with participation outcomes. Following a review of public participation literature and NGO capacities, we present four prototypes of NGO roles along two axes: orientation axis and nature of involvement axis. The prototypes include Entrepreneur, Service-Provider, Enabler, and Partner. We then offer an empirical illustration of the typology using eight case studies across the globe and discuss how the four NGO roles might be associated with outcomes of participatory processes. The framework acknowledges the complex, sometimes limited, contribution of NGOs to participatory processes and suggests practical implications.

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Nonprofit Online Responsiveness: An Exploratory Field Experiment in China

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. This article assesses sources of nonprofit responsiveness and identifies potential drivers for responsiveness, using an online field experiment involving philanthropic foundations in China (N = 3,254). Baseline requests were sent out to the foundations through emails and vignettes were applied to treatment groups by inserting different identity claims or prompts into the contents of the emails. Experimental results showed that, compared with the control group, potential donors were more likely to receive responses, claims concerning government ties or media backgrounds resulted in fewer responses, and citing legal obligations could increase the odds of receiving satisfactory responses. Interpreting the results with reference to stakeholder salience theory, we argue that potential donors are the most salient stakeholders to foundations. Donor requests and legal obligations are the most effective forces driving foundations’ responsiveness in China.

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Mission, Motivation, and the Active Decision to Work for a Social Cause

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. The mission of a job affects the type of worker attracted to an organization but may also provide incentives to an existing workforce. We conducted a natural field experiment with 246 short-term workers. We randomly allocated some of these workers to either a prosocial or a commercial job. Our data suggest that the mission of a job has a performance-enhancing motivational impact on particular individuals only, those with a prosocial attitude. However, the mission is very important if it has been actively selected. Those workers who have chosen to contribute to a social cause outperform the ones randomly assigned to the same job by about half a standard deviation. This effect seems to be a universal phenomenon that is not driven by information about the alternative job, the choice itself, or a particular subgroup.

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Bridging the Gap: A Qualitative Analysis of What It Takes to Inspire Youth to Engage in Volunteering

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. This article explores how to inspire youth to volunteer. Drawing on ideas of inspiration and motivational framing, we develop insight into how constructing and cultivating a sense of efficacy and obligation pushes a young individual passively inspired by the good deeds and acts being performed in the third sector into becoming someone who is inspired to take action and volunteer. Getting out into the real world of practice allowed us to explore the situated practices carried out in a youth summer internship program. We find that five program practices—authorizing, creating safe relational spaces, reflecting, revealing privilege, and simplifying—fostered an emergent action-oriented set of beliefs that supplied the impetus youth needed to become inspired to volunteer. This has implications for our understanding of the inspirational process as well as for philanthropic foundations looking to design effective programs. Limitations and directions for future research are also discussed.

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Dealing With Paradoxes, Manufacturing Governance: Organizational Change in European Third-Sector Organizations

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. Third-sector organizations (TSOs) in Europe have been confronted with profound changes to their regulatory and societal environments. By applying the concepts of “organizational paradoxes” and “governance,” we analyze how TSOs have adjusted their governance as a response to these environmental challenges. Based on organizational case studies in France, Germany, and the Netherlands, we argue that TSOs have found multiple ways to address tensions at the organizational level, for example, by mobilizing and combining resources, re-arranging their organizational governance and by adopting new legal forms. These changes have resulted in hybridization and increased organizational complexity that might translate into the emergence of new paradoxes at the organizational level. Therefore, dealing with paradoxes constitutes an ongoing process for TSOs that goes beyond incremental adjustments.

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To What Extent Is Trust a Prerequisite for Charitable Giving? A Systematic Review and Meta-Analysis

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. Trust is assumed to be important for charitable giving. However, disparate associations have been found, and recent theoretical approaches emphasize motives for giving that do not rely on trust. To resolve this tension, we conducted a systematic review of evidence generated between 1988 and 2020. A meta-analysis of 69 effect sizes from 42 studies sampling 81,604 people in 31 countries confirmed a positive association between trust and giving across diverse measures, r = .22. Meta-regressions showed that organizational (r = .35) and sectoral trust (r = .27) were more strongly associated with giving than were generalized (r = .11) or institutional trust (r = .14). The relationship was also stronger in non-western (vs Western) countries and in nonrepresentative (vs nationally representative) samples. All evidence was correlational, and few studies measured actual behavior. We discuss implications for theories of trust and for fundraising practice, and highlight critical gaps in evidence.

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High-Capacity Donors’ Preferences for Charitable Giving

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. How can charities solicit high-capacity donors to provide the funds for matching grants and leadership gifts? In conjunction with Texas A&M University’s fundraising organizations, we conducted a field experiment to study whether high-income donors respond to nonpersonal solicitations. We also designed the experiment to test the impact of allowing for directed giving on the giving behavior of high-income donors and their willingness to direct their donations toward overhead costs. High-income donors are not responsive to letters or emails, regardless of whether they have the option to direct giving; we cannot conclude, therefore, that giving behavior is different for those who could direct giving compared with those who could not. Our results highlight the difficulties of motivating some high-income donors, especially when only impersonal communication is used.

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Pressure, Cost Accounting, and Resource Allocations: Experimental Evidence on Nonprofit Financial Decision-Making

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. Nonprofit organizations are under pressure to contain their overhead costs. This pressure can affect spending behavior and create an impulse to manipulate financial reporting data. Drawing on stakeholder theory, this study develops a comprehensive framework of ratio management pressure and examines the extent to which external and internal pressures affect financial decisions. We conduct a scenario experiment wherein financial managers perform accounting and spending tasks after subjection to various types of pressure: donor pressure, board pressure, or media pressure. We find that donor pressure significantly affects both accounting and spending behavior, whereas board and media pressure affect only accounting choices. Our research generates insights into the extent to which the observed practice of continuous cost containment is driven by external pressure or rather by organizations themselves. These findings are insightful for nonprofit leaders who wrestle with complex financial challenges and the expectations of multiple stakeholder groups.

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The Effect of Bundling Trade Association Monitoring and Female Board Representation on Loan Losses in Community Credit Unions

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. Loan book management is important to community credit union survival, particularly in deprived localities. Consistent with agency theory, prior studies of credit unions report an association among individual monitoring mechanisms, trade association monitoring, and female board representation, respectively, and reduced loan losses. This study provides a more nuanced understanding by investigating the moderating influence of these monitoring mechanisms on the relationship between loan losses and deprivation and by considering the effect of bundle combinations of different levels of the two monitoring mechanisms on loan losses. The results reveal that credit unions subject to trade association monitoring have the lowest loan losses. However, in the absence of trade association monitoring, female board representation has a moderating effect on loan losses as deprivation increases. Finally, trade association monitoring and female board representation have a substitutive, rather than a complementary effect on loan losses.

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Nonprofit Entrepreneurship: Gender Differences in Strategy and Practice

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. There is evidence of meaningful gender differences in behaviors, resources, and outcomes for traditional and social entrepreneurs. We examine if these differences exist among nonprofit entrepreneurs—those who found organizations in a sector where women outnumber men and the activities of many nonprofits are perceived as feminine. Using survey data from 667 nonprofit founders, we investigate human, social, and financial capital differences between men and women. We find no gender differences in human capital before starting a nonprofit. We find gendered differences in founding approaches—women are more likely to take on full-time roles during the start-up phase and utilize volunteers, while men take on more financial debt. Although gender differences between nonprofit founders are not as extensive as those found among traditional and social entrepreneurs, our findings indicate more equitable opportunities for female nonprofit entrepreneurs. These findings highlight the opportunities for interrogating the gendering of nonprofit development.

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Perceptions and Conceptions of “Place” in Australian Public Foundations

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. This study examines place-based philanthropy in public ancillary funds (PubAFs) in Australia. While PubAFs vary greatly in their purposes, stakeholders, and operating models, place emerges as a strong element of foundations’ perceived identity, strategic focus, and grantmaking. This article advances the understanding of philanthropic giving by investigating and identifying the perceptions of place by PubAF managers and trustees, contributing to a novel and valuable “insiders” perspective on PubAFs. Drawing on Agnew’s three elements of place, namely location, locale, and sense of place, key findings highlight PubAFs’ ties to place in multiple contexts and dimensions. This qualitative study contributes to understandings of the ways in which place shapes and defines giving by public foundations, overlaps and interacts with foundations’ mission and strategy, and affects philanthropic impact.

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Does Social Media Engagement Translate to Civic Engagement Offline?

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. People increasingly engage in politics on social media, but does online engagement translate to offline engagement? Research is mixed with some suggesting how one uses the internet maters. We examine how political engagement on social media corresponds to offline engagement. Using data following the 2016 U.S. Presidential Election, we find the more politically engaged people are on social media, the more likely they are to engage offline across measures of engagement—formal and informal volunteering, attending local meetings, donating to and working for political campaigns, and voting. Findings offer important nuances across types of civic engagement and generations. Although online engagement corresponds to greater engagement offline in the community and may help narrow generational gaps, this should not be the only means to promote civic participation to ensure all have a voice and an opportunity to help, mobilize, and engage.

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The Hidden Contributions of Local Staff When Hosting International Development Volunteers

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. This exploratory study identifies what additional work-roles local staff take on when their organization hosts a long-term international development volunteer, and explains why they do this. Analyzing interview data from a sample of local employees in Vietnamese organizations, the study identifies five work-roles: two that buttressed “volunteer and organization readiness” (preparing and orienting) and three that facilitated “volunteer performance” (translating, advocating, and mediating). These roles, often outside the formal work-role and expertise of the local employees, added to their cognitive and emotional loads and to a large extent went unrecognized by their employers. They were motivated by a combination of personal benefit (notably, opportunities to learn) and reciprocity norms that appear influenced, in part, by respondents’ cultural conditioning. The implications of this for volunteer-involved organizations, volunteers, and locals are discussed.

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Does the Economic Decline of the West and the Rise of China Encourage NGO Crackdown?

Nonprofit and Voluntary Sector Quarterly, Ahead of Print. Laws restricting foreign funding to domestically operating nongovernmental organizations (NGOs) have proliferated in developing countries. This is puzzling because Western powers support the norm that NGOs are critical for democracy and development, recommend governments partner with NGOs, and sometimes use trade sanctions to encourage adherence to this norm. We examine whether rising trade with China influences the onset of NGO restrictions. China, which has emerged as an important export destination, articulates a different norm of state sovereignty over NGOs and does not sanction developing countries that enact restrictive NGO laws. Analysis of 153 developing countries from 2000 to 2015 finds that increasing exports to China may double the risk of NGO crackdown, but only when accompanied by declining exports to Western democracies. NGO scholars should recognize there are multiple norms about state-NGO relationship and that norm acceptance is influenced by the economic clout of the power that espouses a particular norm.

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