Nonprofit governance in times of Covid-19: should organizations change their practices and strategy in the middle of a crisis?

Abstract

PurposeIn the face of crises, nonprofit organizations (NPOs) have focused on their financial viability but there are other operational aspects to consider (e.g. activity or volunteer involvement). This study aims to investigate whether governance changes made by NPOs in times of crisis have enhanced organizational viability in a broader sense.Design/methodology/approachThrough community-engaged research, the link between governance changes and organizational viability is examined. This study is based on a survey of 10,926 French NPOs and the conceptual framework of societal orientation.FindingsThey show that changing governance in the midst of a crisis can protect organizational viability, if the beneficiaries and members remain the core of the strategic target and if the content of volunteering remains stable.Research limitations/implicationsThis study, therefore, calls for a better study of the risks of governance changes for internal stakeholders, both at the level of scholars and within the organizations themselves. The results extend recent works on governance change and highlight the relevance of societal orientation in times of crisis.Practical implicationsThis study helps to counter the criticisms regularly made about governance (particularly in France) and highlights the importance of maintaining the board of directors in NPOs. It invites NPOs to make decisions that protect their values, mission and beneficiaries at all times.Originality/valueThis study focuses on societal orientation in relation to stakeholder theory, as well as the nonfinancial aspects of viability.