The Role of Relationships in Effecting Outcomes as Related to the Impact of Nonprofit Financial Misconduct

The Role of Relationships in Effecting Outcomes as Related to the Impact of Nonprofit Financial Misconduct
Author: Adrienne Darrah
Publisher:
Total Pages: 0
Release: 2023
Genre:
ISBN:

Charitable nonprofit organizations in the United States have remained mission-based since they were first introduced in the late-1800s. As an archaic human carryover, modern-day philanthropy is heavily reliant on the goodwill of individual donors. Since the Twelfth Street YMCA in Washington, DC, held the very first professional fundraiser in 1905, fundraising has become engrained in American society and continues to evolve through the adoption of professional and public standards. Similar to the other sectors, the nonprofit sector is not impervious to managerial missteps and may find itself in the midst of a scandal. Nonprofit scandals are often the outcome of an organization's failure to institute mechanisms for internal oversight or the organization's lack of ethical business practices as they are presented through shared information with external stakeholders. Though an organization's misconduct does not guarantee a scandal will come to fruition, scandals that do, can adversely impact not only the nonprofit organization itself but also the nonprofit sector as a whole. This is particularly noteworthy for a sector that is dependent upon individual donations to support its work. A charitable nonprofit organization's dependence on its stakeholders, can be explained by considering the organization's innate lack of financial resources. With a foundational business model that relies on donor stakeholders to donate these resources, a charitable nonprofit organization is inherently vulnerable to external controls and demands. Though most organizations prefer not to cede any level of independence to their external stakeholders, a nonprofit's control is contingent upon the organization's level of dependence on its donor stakeholders. By nature, a charitable nonprofit organization relies on its donors for revenue, which epitomizes the resource dependence tenet regarding an organization being beholden to its external stakeholders. This is due in part to the constraints placed on the nonprofit's access to its basic resources. Nonprofit's that misbehave through misconduct or misappropriations are believed to be susceptible to donor sanctions, including the withholding of financial resources. This study aimed to examine whether a nonprofit's stakeholders' exposure to negative information regarding the organization's misuse of raised funds has a detrimental impact on the donor's future philanthropy and their uncertainty regarding donating to that organization. Donor status, both as a singular variable and as an interaction with the experimental stimuli, was also measured to assess its impact on uncertainty. Donation uncertainty was measured to examine how it affects the nonprofit-donor relationship and ultimately donation intention and word-of-mouth intention. Previous research has focused on relationships in regard to fundraising, however, little research has investigated the issue of uncertainty and its impact on donation intention. It has long been accepted that previous donor status and organizational behavior both impact donation intention. However, the findings in this study indicate that there may not be a significant relationship between previous donation status or organizational behavior and donation uncertainty. There is, however, a significant relationship between uncertainty and relationship management and relationship management and donation intention and word-of-mouth intention. Further studies are needed to investigate donation uncertainty in more detail given its significant impact on the nonprofit-donor relationship. This study included a total of 331 participants who were recruited through Amazon Mechanical Turk (MTurk) and randomly assigned to two treatment conditions or one control condition. The experiment required study participants to first read pieces of information followed by responding to a questionnaire. The collected data was analyzed using R, AMOS, and SPSS.

The Governance-performance Relationship: Examining the Impact of Nonprofit Governance on Financial Performance in Medium-sized Nonprofit Organizations

The Governance-performance Relationship: Examining the Impact of Nonprofit Governance on Financial Performance in Medium-sized Nonprofit Organizations
Author: Fredrik O. Andersson
Publisher:
Total Pages: 205
Release: 2012
Genre: Electronic dissertations
ISBN:

As the nonprofit sector has grown rapidly in size and significance in recent decades, the role and impact of governance of nonprofit organizations have become increasingly important and popular topics among nonprofit scholars and practitioners. Extensive research and practice in nonprofit governance are based on the premise that a well-performing governance function coincides with effective and high-performing organizations, yet the empirical assessment and knowledge about the mechanisms that links governance to performance are still limited. This dissertation focuses on how nonprofit governance, and the boards entrusted to fulfill this critical function, impacts nonprofit organizational performance by examining how three critical governance elements - board composition, funding strategy, and planning and evaluation practices - affect the financial performance in 152 medium-sized nonprofit agencies.

Measuring the Impact of the Nonprofit Sector

Measuring the Impact of the Nonprofit Sector
Author: Patrice Flynn
Publisher: Springer Science & Business Media
Total Pages: 328
Release: 2001
Genre: Business & Economics
ISBN: 9780306465482

One of the major tasks facing researchers, practitioners, and funders is the development of empirical tools to measure the inherent worth of nonprofit organizations as well as the sector as a whole. Renowned scholars present chapters on the state of the art of performance measurement in the nonprofit sector and seek to establish a framework for a long-term research agenda to identify, quantify, and self-assess those qualities that make the nonprofit sector unique.

Financial Management for Nonprofit Organizations

Financial Management for Nonprofit Organizations
Author: John Zietlow
Publisher: John Wiley & Sons
Total Pages: 791
Release: 2018-04-06
Genre: Business & Economics
ISBN: 1119382599

Essential tools and guidance for effective nonprofit financial management Financial Management for Nonprofit Organizations provides students, professionals, and board members with a comprehensive reference for the field. Identifying key objectives and exploring current practices, this book offers practical guidance on all major aspects of nonprofit financial management. As nonprofit organizations fall under ever-increasing scrutiny and accountability, this book provides the essential knowledge and tools professional need to maintain a strong financial management system while serving the organization’s stated mission. Financial management, cash flow, and financial sustainability are perennial issues, and this book highlights the concepts, skills, and tools that help organizations address those issues. Clear guidance on analytics, reporting, investing, risk management, and more comprise a singular reference that nonprofit finance and accounting professionals and board members should keep within arm’s reach. Updated to reflect the post-recession reality and outlook for nonprofits, this new edition includes new examples, expanded tax-exempt financing material, and recession analysis that informs strategy going forward. Articulate the proper primary financial objective, target liquidity, and how it ensures financial health and sustainability Understand nonprofit financial practices, processes, and objectives Manage your organization’s resources in the context of its mission Delve into smart investing and risk management best practices Manage liquidity, reporting, cash and operating budgets, debt and other liabilities, IP, legal risk, internal controls and more Craft appropriate financial policies Although the U.S. economy has recovered, recovery has not addressed the systemic and perpetual funding challenges nonprofits face year after year. Despite positive indicators, many organizations remain hampered by pursuit of the wrong primary financial objective, insufficient funding and a lack of investment in long-term sustainability; in this climate, financial managers must stay up-to-date with the latest tools, practices, and regulations in order to serve their organization’s interests. Financial Management for Nonprofit Organizations provides clear, in-depth reference and strategy for navigating the expanding financial management function.

Relationships Break the Rules

Relationships Break the Rules
Author: Miriam Drennan
Publisher: Dust Jacket Media Group
Total Pages: 172
Release: 2021-10-11
Genre: Business & Economics
ISBN: 9781953285157

This book will help you . . . Think and act differently about the terms "fundraising" and "fundraiser" Settle the question: is fundraising a science or an art? Answer the question: why are 51% of "fundraisers" planning to leave their job in the next 12 months? Rethink your mandate that all non-profits believe they value people-but do they? Most if not all people know non-profits need money so why are spending time talking about it-really? Is being relational a culture for you or a strategy? Start a conversation

Model Rules of Professional Conduct

Model Rules of Professional Conduct
Author: American Bar Association. House of Delegates
Publisher: American Bar Association
Total Pages: 216
Release: 2007
Genre: Law
ISBN: 9781590318737

The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.

Governance Factors Affecting Nonprofit Organizations' Financial Health

Governance Factors Affecting Nonprofit Organizations' Financial Health
Author: Scott Dell
Publisher:
Total Pages: 109
Release: 2019
Genre: Corporate governance
ISBN:

Nonprofits have a significant impact on the world around us. They provide services for the common good and are having an increasing influence on the economy over time (Bureau of Labor Statistics, 2014; McKeever & Gatty, 2016; National Center for Charitable Statistics, 2018). There is a consensus among prior studies that effective corporate governance positively impacts the success and financial health of for-profit entities, including both internal (e.g., board size, number of independent directors) and external (e.g., institutional ownership and number of analysts following a firm) governance (Chen, Chung, Hsu, & Wu, 2010; Coles, Daniel, & Naveen, 2008; Eisenberg, Sundgren, & Wells, 1998; Guest, 2009; Moyer, Chatfield, & Sisneros, 1989). This present research shows that governance factors can also positively influence the success of nonprofits. This study analyzes the impact of internal governance such as board size, the existence of written policies, and presence of an outside audit, as well as external governance factors such as community religiosity and social capital, on a nonprofit organization's financial health. A nonprofit organization with stronger governance levels can expect to have better oversight, as the organization would garner additional attention by community professionals and other interested parties committed to making sure the organization puts its best foot forward in serving the community. Thus, I expect to find and provide evidence that these factors positively influence a nonprofit organization's financial health.

Three Essays on Nonprofit-government Interactions and the Effects on Citizen Participation

Three Essays on Nonprofit-government Interactions and the Effects on Citizen Participation
Author: Ruodan Zhang
Publisher:
Total Pages: 131
Release: 2020
Genre: Collective behavior
ISBN:

Nonprofit organizations serve an important function of "voluntary redistribution" in society (Witesman, 2016), and form different relationships with the government. This dissertation project examines nonprofits' role in involving citizens in public affairs and the effects of nonprofit-government interactions on civic participation, with a specific focus on two missing connections in this triangular relationship: the collective efficacy mechanism, and the government-nonprofit funding relations on individual volunteering. The overarching research question is "How do nonprofit-government interactions affect the recruitment the persistence of citizens as volunteers?" I argue that collaborative interactions between nonprofits and the government are likely to positively affect citizens' voluntary participation in public affairs, even in conflicts, and that on average, public funding facilitates nonprofits' function as "schools of democracy" (Tocqueville, [1835]2000). This project intends to contribute to the growing dialogue on the role of nonprofits in motivating and sustaining citizen participation, considering the nonprofit-government dynamic on the other hand. The three essays examine multiple ways in which citizens develop their civic life and speak truth to power. The first essay examines whether the funding relationship between nonprofits and the government has negative consequences on nonprofits' use of volunteers. The results suggest a small crowding-in effect, and show that the effect varies by nonprofit fields. In the second essay, I investigate the use of volunteers for lobbying activities, and examine whether the presence of government grants reduces the likelihood of such grassroots participation. The analyses show that government grants' effect varies by nonprofit sub-sectors0́4while human service organizations increase the tendency to use volunteer lobbyists, environment organizations report a significantly lower likelihood. The final essay explores mechanisms behind citizens' persistence in protests, and I argue that the strength of "collective efficacy" predicts protesters' persistence.

For-Profit Enterprise in Health Care

For-Profit Enterprise in Health Care
Author: Institute of Medicine
Publisher: National Academies Press
Total Pages: 580
Release: 1986-01-01
Genre: Medical
ISBN: 0309036437

"[This book is] the most authoritative assessment of the advantages and disadvantages of recent trends toward the commercialization of health care," says Robert Pear of The New York Times. This major study by the Institute of Medicine examines virtually all aspects of for-profit health care in the United States, including the quality and availability of health care, the cost of medical care, access to financial capital, implications for education and research, and the fiduciary role of the physician. In addition to the report, the book contains 15 papers by experts in the field of for-profit health care covering a broad range of topicsâ€"from trends in the growth of major investor-owned hospital companies to the ethical issues in for-profit health care. "The report makes a lasting contribution to the health policy literature." â€"Journal of Health Politics, Policy and Law.