Is it more difficult to replace the volunteer directors of non‐profit organizations that have recourse to public funds? Evidence from France

Abstract

AbstractMany non‐profit organizations experience difficulties in replacing the members of their boards of volunteer directors. And yet, despite the rich literature on the governance of these organizations, such difficulties have been investigated only to a very limited extent. The present article seeks to ascertain whether there is a correlation between these difficulties and the share of public funds in the resources of French non‐profit organizations. To that end, this study draws on a database derived from a survey of these organizations that remains without precedent in France. The investigation reveals a positive correlation between the expression of that difficulty in replacing directors and the extent to which organizations’ financial resources are dependent on public funds. However, this correlation is confined to certain fields of activity, notably the social and charitable field. Moreover, it is not linear. It generally tends to stabilize beyond a 25% threshold of dependency on public financing.