Abstract
One of the most important current challenges facing non-profit organizations (henceforth, NPOs) is to demonstrate that resources are being used properly to fulfill their missions. The development of control mechanisms to facilitate the measurement of social goal fulfillment has thus become a priority. In this context, transparency and good governance are configured as essential strategic elements to build trust with different stakeholders. In this work, we show the value provided by management indicators as they have become a necessary tool to confirm that the use of resources, internal processes and decisions within NPOs are carried out with the highest levels of efficiency and excellence. Only in this way can social credibility be achieved. The success of an NPO is inextricably linked to the support of donors, users, public administration and society as a whole. To achieve our research objective, we build a measurement scale based on the case of the Spanish National Organization for the Blind (ONCE), one of the largest Spanish NPOs. Based on ONCE’s experience, we propose a management indicator model that covers all social dimensions. The model is empirically validated to standardize the indicators for the ONCE and for serving as a reference for other entities.
Highlights
We have witnessed the strong development of non-profit organizations (NPOs), with the NPO becoming a unique model in the provision of essential social services for the community (Connolly et al, 2013; Amagoh, 2015)
In section “Theoretical Framework and State of the Issue,” we review the relevant literature on the conceptualization of the organizations that make up the third sector and we justify how management indicators turn into a tool that responds to information needs
One of the great challenges facing NPOs today is the need to demonstrate that the funds received are managed efficiently
Summary
We have witnessed the strong development of non-profit organizations (NPOs), with the NPO becoming a unique model in the provision of essential social services for the community (Connolly et al, 2013; Amagoh, 2015). The increasing relevance of these entities is evident (Connolly et al, 2013), and their importance will continue to grow (Pennerstorfer and Rutherford, 2019) as social needs increase. The altruistic work of these organizations has received unquestionable social recognition (Rodríguez et al, 2012), mainly because these entities address a large part of the most important needs of our society (Schatteman, 2013). Transparency has become a key issue for NPOs (Sanzo-Pérez et al, 2017). The image they project to society has become essential (Tremblay-Boire and Prakash, 2015). The absence of transparency involves the loss of support from donors, volunteers, users and society in general, highlighting the failure of the organization (Hale, 2013)
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