Larger Nonprofits Research Articles

Nonprofit Planning and Impact with Regard to the 2018 Tax Law

The Tax Cuts and Jobs Act (TCJA) is considered the largest tax overhaul since 1986 and was anticipated to produce declining charitable donations for nonprofits and was expected to create disruption across the nonprofit sector in 2018. This study tests whether small nonprofits (under $250,000 in revenues) or large nonprofits (over $250,000 in revenues) planned differently due to the law and secondly, how they were affected by the law. Utilizing survey data from 50 nonprofits, this research offers qualitative data on both large and small nonprofit organizational awareness as it relates to the rollout of the law.

Do Charities Clarify or Conceal? Text Complexity and the Financial Performance of Large Nonprofits

Do Charities Clarify or Conceal? Text Complexity and the Financial Performance of Large Nonprofits

Nonprofit Board Network and Total Contributions

ABSTRACT We utilize two theoretical frameworks to explore the impact of nonprofit board networks on the ability to raise funds. Consistent with the information sharing perspective, we find that having more network connections leads to higher contributions. However, consistent with the finite resource perspective, we find that a higher connection intensity leads to lower contributions. Our additional tests suggest that larger nonprofits, nonprofits that invest more in fundraising, and those that are better governed are better able to take advantage of board connections and mitigate the negative consequences of connection intensity. Our findings suggest that the impact of nonprofit board networks on total contributions is complex and not one-sided.

Nonprofit Planning and Impact with Regard to the 2018 Tax Law

The Tax Cuts and Jobs Act (TCJA) is considered the largest tax overhaul since 1986 and was anticipated to produce declining charitable donations for nonprofits and was expected to create disruption across the nonprofit sector in 2018. This study tests whether small nonprofits (under $250,000 in revenues) or large nonprofits (over $250,000 in revenues) planned differently due to the law and secondly, how they were affected by the law. Utilizing survey data from 50 nonprofits, this research offers qualitative data on both large and small nonprofit organizational awareness as it relates to the rollout of the law.

The geography of giving: Nonprofit philanthropy, public parks and land conservation in the United States

AbstractFaced with budget cutbacks, state and local governments struggle to adequately fund public parks and support land conservation. “Support nonprofits” are charitable organizations soliciting voluntary contributions of money, property, and service to protect parks and natural systems (Gazley, 2015). From 2000 to 2015, the number of support nonprofits increased by 188% and total nonprofit revenue increased by 263%, outpacing growth in public charities nationwide (NCCS). The rapid growth in support nonprofits prompts key questions about access and equity: Which communities benefit from support nonprofits? Do support nonprofits advocate for public land conservation? Using a novel national dataset pairing large nonprofits with the counties they serve, the article has three key findings: (1) counties in metropolitan areas with well‐educated, liberal residents are more likely to have a support nonprofit fundraising for public land, and (2) there is no correlation between public funding for parks and support nonprofit presence. In addition to philanthropy, (3) counties with support nonprofits are more likely to pass ballot initiatives funding public land conservation. It is imperative that policy‐makers and conservation advocates consider how nonprofit philanthropy maps on to—and augments—existing inequality in access to parks and natural resource conservation.

Nonprofits and C Corporations: Performance Comparison

We extend the performance comparison study of nonprofits (NPs) and pass-throughs by examining large NPs and large C corporations (CCs). Unlike that study, we also examine performance outcomes under two different tax shield policies. We use the Capital Structure Model as our main methodology. Our purpose is to compare large NPs with large CCs in terms of debt choice, valuation, leverage gain, and growth-related outcomes. All tests considered, NPs (compared to CCs) have a 34.90% valuation advantage; achieve a 78.12% greater increase in value when going from nongrowth to growth (using a 12.34% lower plowback ratio and 10.97% less in retained earnings); attain a 2.56% greater optimal leverage ratio; and, realize 10.97% less in dollars added from debt. We show that switching from an interest tax shield to a retained earnings tax shield increases CC value between 1.35% and 3.28%. The NP value limit is only 0.42% since NPs pay little taxes. Our findings are value-additive for the comparative ownership form research.

Lower Prices for Customers, and Less Charity Care? The Prospects for Mixed-Market Competition With Nonprofit and Hybrid Firms

In recent years, the emergence of new legal forms allowing for-profit firms to incorporate with a formal commitment to both profit and social purpose has disrupted the traditional American business-charity dichotomy. The arrival of these hybrid firms can be expected to affect the functioning of markets and poses a potential challenge to the role played by large nonprofits that provide quasi-public services such as education and health care. We construct duopoly models of competition between a nonprofit firm and either a traditional for-profit firm or a hybrid firm, simultaneously choosing output levels of a homogeneous good. We show that when the nonprofit competes with a hybrid firm it becomes less competitive in the sense that its output level contracts, it raises less net revenue with which to fund charity care, and it is more easily driven out of the market.

Current Topics in Health Care Law

Current Topics in Health Care Law

Fraud case highlights need for audit committees, diligence

While most larger nonprofits have audit committees in place that provide oversight of the organization's finances—making financial fraud more difficult to pull off unnoticed—many smaller organizations don't. Instead, these groups typically just depend on the treasurer to keep tabs on finances and report out to the rest of the board and executive leadership where things stand. Experts have long cautioned against having that much responsibility under one role, with no other oversight, and with good reason: it makes the organization much more vulnerable to theft and embezzlement.

The use and consequences of perquisite types in nonprofit organizations

We document perquisite use in the nonprofit sector, the determinants of that use, and the ensuing consequences. Relative to the for-profit sector, the nonprofit sector is characterized by a lack of residual ownership rights and less detailed disclosure requirements, factors that have the potential to influence this piece of the compensation package. Using a sample of over 126,000 organization-year observations from 2008 to 2018, we document that approximately 24% of organizations report providing one or more of their executives with perquisites. We find that perks are more likely in larger nonprofits with excess endowments and fewer governance policies, and less likely at organizations with more outside monitors. We also find that perk disclosure has a negative impact on future donations. However, when we decompose our analysis by type of perk, we find evidence that some perks have a positive effect on future donations. Our results are robust to a variety of alternative formulations and provide useful insights for nonprofit regulators, boards, and donors.

Intersectoral cooperation to increase HPV vaccine coverage: an innovative collaboration between Managed Care Organizations and state-level stakeholders

ABSTRACT In order to reduce disparities in human papillomavirus (HPV) vaccine coverage, intersectoral approaches are needed to reach vulnerable populations, including Medicaid enrollees. This manuscript describes a collaboration between Medicaid Managed Care Organizations (MCOs), the American Cancer Society, and a state health department in a Midwestern state to address HPV vaccination. Qualitative interviews (n = 11) were conducted via telephone with key stakeholders from the three participating organizations using an interview guide designed to capture the process of developing the partnership and implementing the HPV-focused project. Interviews were transcribed and coded using thematic analysis. Interviewees described motivation to participate, including shared goals, and facilitators, like pooled resources. They cited barriers, such as time and legal challenges. Overall, interviewees reported that they believed this project is replicable. Conducting this project revealed the importance of shared vision, effective communication, and the complementary resources and experiences contributed by each organization. Valuable lessons were learned about reaching the Medicaid population and groundwork was laid for future efforts to serve vulnerable populations and reduce health disparities. This work has significant implications for other organizations seeking to partner with large nonprofits, state health departments, MCOs, or others, and the lessons learned from this project could be translated to other groups working to improve vaccination rates in their communities.

The Impact of Chain Standardization on Nursing Home Staffing.

Standardization in production is common in multientity chain organizations. Although chains are prominent in the nursing home sector, standardization in care has not been studied. One way nursing home chains may standardize is by controlling the level and mix of staffing in member homes. To examine the extent to which standardization occurred in staffing, its relative presence across different types of chains, and whether facilities became more standardized following acquisition by a chain. We estimated predictors of the difference between facility and chain staffing using Generalized Estimating Equations with 2000-2010 data. This study included nursing homes nationally, excluding hospital-based homes and homes in Alaska, Hawaii, and the District of Columbia. Chain ownership was coded from text identifying chain names. Two nurse staffing measures were used: staff hours per resident day and staff mix. Very large for-profit chain nursing homes and large nonprofits had less variation in staff hours per resident day (P<0.001) but greater variation in staffing mix (P<0.001) compared with the chain average nationally. Large for-profit chains and medium nonprofit chains had greater dispersion on staff hours per resident day (P<0.001), while large nonprofit chains had greater dispersion in staffing mix (P<0.001). The difference between facility and chain staffing decreased over time. The largest chains (for-profit and nonprofit) had less staffing variation compared with national standards, suggesting they were best at implementing corporate practices. Following ownership changes, staffing converged towards chain averages over time, suggesting standardization takes time to implement.

Increasing the Size of the Pie: The Impact of Crowding on Nonprofit Sector Resources

AbstractThe number of nonprofit organizations is rapidly increasing, which has led nonprofit practitioners to complain of funding scarcity, nonprofit scholars to closely study nonprofit competition, and policymakers to consider increasing nonprofit barriers to entry. Underlying each of these perspectives is an assumption of limited financial resources. We empirically examine this assumption using county-level panel data on nonprofit human services organizations from the National Center for Charitable Statistics. Contrary to the limited resources assumption, our fixed-effects models show that increasing nonprofit density, at its current levels, has the effect of increasing sector financial resources in each county. We suggest that these findings prompt a tradeoff for policymakers. A sector with free market entry results in a nonprofit sector with more, smaller nonprofits, but such a sector may have the capacity to serve more people because it has more total sector financial resources. Conversely, a sector with higher barriers to entry would translate to a sector with fewer, larger nonprofits with less overall capacity due to fewer sector financial resources.

Characteristics of Patients Who Elect Full Resuscitation Status During Enrollment in the Medicare Hospice Benefit in Two Large Nonprofit Hospices: A Retrospective Review (TH371B)

Characteristics of Patients Who Elect Full Resuscitation Status During Enrollment in the Medicare Hospice Benefit in Two Large Nonprofit Hospices: A Retrospective Review (TH371B)

Data show modest increase in 2015 nonprofit fundraising totals

Nonprofit Business AdvisorVolume 2016, Issue 319 p. 7-7 Industry News Data show modest increase in 2015 nonprofit fundraising totals First published: 18 March 2016 https://doi.org/10.1002/nba.30178Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Abstract Charitable donations to U.S.-based nonprofits grew by about 1.6 percent in 2015 on a year-over-year basis, according to the latest research by nonprofit software company Blackbaud. However, growth rates differed significantly according to organization size, with large nonprofits—those with annual total fundraising of $10 million or more—growing by about 1.4 percent, while small groups—those with less than $1 million in total fundraising—logged a growth rate of 5.5 percent, on average, the company said. Medium organizations, meanwhile, averaged a decline of 0.7 percent for the year. Volume2016, Issue319April 2016Pages 7-7 RelatedInformation

Ethnographic Foresight: Understanding Your Customers' Futures

Trends are a commodity. You are one Google search from discovering hundreds of forecasts, trend lists, and predictions for your industry. Unfortunately, so are all of your competitors. Innovating against these known trends is table stakes. You need to do it just to stay in the game, but doing so will likely yield only market-rate growth unless your company already has a particular advantage. To grow at above-market rates and achieve truly transformational innovation, companies need to create a proprietary understanding about the future. This enables them to focus innovation, acquisitions, and other activities to build unique capability in tomorrow's growth areas. One way to achieve proprietary understanding of the future is through ethnographic foresight. This research method combines customer ethnography techniques with foresight tools to anticipate future customer demand and build new capabilities ahead of competitors. Ethnographic foresight has a rich history: futurist Arnold Mitchell created the VALS (Values, Attitudes, and Lifestyles) instrument as a foresight tool to understand how society might develop in the future for a 1978 study at SRI International; it became one of the first foresight-related tools used by business (Yankelovich and Meer 2006), and it's still in use today. VALS identified specific groups of consumers who shared unique values that were expressed through behavior and consumption. Companies were then able to develop products and services aimed at those values and begin to anticipate how those groups might behave in different potential futures. Today the use of ethnography for business that VALS helped engender is very sophisticated; it underpins the marketing activities of many companies. Ironically, though, ethnography is not commonly used as VALS was originally intended, to understand the broader future of society. Rather, business ethnography often focuses on understanding customers as they are now. Ethnographic foresight combines business ethnography with foresight tools such as scenario planning, systems thinking, and forecasting to unearth unique insights into the future. There are three main ways to do ethnographic foresight: * Incasting--placing your current customers into new futures and evaluating how they might respond, * Forecasting--identifying new consumer behaviors and looking for how they might be creating unique futures, and * Co-evolution--recognizing that people both shape and are shaped by the future and developing ways to monitor this co-evolution over time. An example ripe for ethnographic foresight is playing out right now with the rise of the Millennial generation. Connected technologies, a parental focus on safety and security, and a slow economy are shaping the values and behavior of Millennials. Applying the tools of future ethnography can yield a rich harvest of insight to drive product, service, and business model innovation: * Using incasting, we can ask how the expression of Millennial values might change in different futures or contexts. For instance, as the financial hangover from the Great Recession finally dissipates, the United States, with its large, highly trained workforce, could be poised for a sustained period of above average financial growth. How might Millennials react to this economic boom scenario, which would be unfamiliar to them? How would their desire for access, as opposed to ownership, be expressed? How would their need for virtual experiences and companionship change or be enhanced by increased disposable income? * Using forecasting, we can look for affluent Millennials, use ethnographic techniques to discover behaviors or desires that differentiate them from the rest of their generational Christian Crews has over 15 years of experience applying foresight to innovation and strategy for large corporations, nonprofits, and government agencies. He designed and Implemented the IRI2038 project for IRI in 2012-2013 and is a leading practitioner and innovator in scenario planning methods. …

Management trends: Internationalization of non-profit organizations

Non-profit organizations are increasingly gaining importance in the modern economy with their development and their numbers increasing day by day. It is very important to note that non-profit organizations are often subject to various benefits that the for-profit companies are not. Thus, for example, preferential tax status of non-profit organizations is manifested primarily in the form of exemption from corporate income tax. In addition, private non-profit organizations enjoy various other state, local and federal taxes exemptions. Under certain conditions, these organizations are exempt from taxes on donations and membership fees. A feature that differentiates various non-profit organizations and profit-oriented companies is their source of income. Profit oriented companies depend on their income, obtained from sales of their goods or services to customers, who usually cover the price and cost of goods and services plus the profit. In contrast, nonprofit organizations are very dependent on membership fees, tax exemptions, members donations or depend on funds of the sponsoring agency which covers most of their costs, for example a federal government agency. Those non-profit organizations that have substantial operating costs beyond national borders and do not identify themselves as purely domestic in their mandate are International non-profit organizations. Most non-profit organizations remain in their national boundaries, on the territory of the country in which they were created, but a large number of non-profit organizations rapidly internationalize, and some larger non-profits have grown into important global actors. The paper includes the following sections: (1) introduction, (2) why is the 'non-profit' important, (3) the internationalization of non-profit organizations, (4) sources of income of non-profit organizations (4.1.) causality of impact and of strategic decisions in cases pertaining to universities, (5) the limits of strategic management impact on non-profit organizations (6) management trends in non-profit organizations, and (7) conclusion.

Leveraging Generational Differences to Reduce Knowledge Transfer and Retention Issues in Public Administration

Two of the biggest issues facing large non-profits and organizations employing civil servants today are knowledge transfer from the retiring Baby Boomers to their younger replacements, the Gamers, and the retention of those younger employees. Government and non-profit organizations should consider investing time and resources into understanding the demographic shift currently in process in the global workforce. Retirees are replaced by people 35 years old or younger who think, learn, believe, respond, and work differently further increasing the cultural gap that must be traversed in order to successfully transfer knowledge. This younger demographic is raised on technology and may not remember a time when there were no computers, video games, mobile devices, and the Internet. Members of this younger generation are “digital natives” who bring different skillsets to the workplace such as stronger visual memory capabilities, greater memory retention and recall, and self-actualization. Non-profit and civil servant employers must learn to take advantage of these unique traits in order to overcome the challenges presented by this demographic shift.

The Investment Returns of Nonprofit Organizations, Part II

We continue our examination of the investment performance of nonprofit charities and foundations. This analysis tests hypotheses about what types of organizations do better. Our motivating intuition is that nonprofits with greater focus on investment performance will secure higher returns. Our hypotheses are tested by regressing the rate of return for each organization on various characteristics. As expected, nonprofits whose primary business is predominantly financial, such as insurance providers and pension or retirement funds, consistently earn higher returns. The data also support our hypotheses that larger nonprofits, older nonprofits, and private foundations will tend to outperform. The evidence is mixed as to whether nonprofits that pay higher executive salaries or spend more on management earn higher returns.

Networking Modes and Performance in Israel's Nonprofit Organizations

The present article examines the relationship between networking modes and performance for 138 nonprofits in Israel. We draw upon the bridging and bonding concepts and social exchange theory and introduce the sharing and consulting networking modes to predict performance in terms of organizational growth in resources. We suggest that differences in networking modes (1) reflect variations in organizational size and age and (2) affect organizational growth in resources. We show that (1) the consulting networking mode is more frequent among managers of smaller and younger nonprofits, (2) sharing is characteristic of managers in older and larger nonprofits, (3) sharing has a strong effect on organizational growth, and (4) the sharing and consulting modes are better predictors of organizational performance than those of bonding and bridging. The results indicate that nonprofit growth in organizational resources is possible with networking when managers aspire to higher involvement in the networking process due to the scope and extent of goals.