Nonprofit Density Research Articles

The Relationship Between Nonprofit Density and Socioeconomic Indicators in an Emerging Country

The Relationship Between Nonprofit Density and Socioeconomic Indicators in an Emerging Country

Connecting founding and dissolution: A demographic study of the US nonprofit sector

AbstractDespite a rich literature on nonprofit density, the founding and dissolution of nonprofit organizations remains poorly understood. This study explores the founding and dissolution in nonprofit populations including density dependence, resource concentration, government size, and hypothesizes that dissolution creates an entrepreneurial opportunity. The hypotheses are tested using county level data covering the continental US from 2010 to 2016 (N = 21,756). The results show government size, competition, and resource concentration are important for understanding founding and dissolution, and establishes strong support for a link between the events: a one standard deviation increase in the number of dissolutions in a county predicts an increase of 1.5% (CI: .72–2.31) in the nonprofit founding rate. The study highlights ways for public officials to support nonprofit entrepreneurship and calls for renewed interest in ecological applications in contemporary nonprofit populations.

Understanding Location and Density: A Spatial Analysis of Cuyahoga County Ohio’s Nonprofit Sector

Theories of density dependence emphasize the role of competition and legitimation in organizational life. However, agglomerative configurations and ecological processes vary substantially over space, resulting in heterogeneous sub-populations which organizations select into by choosing locations. Using geostatistical data constructed from form-990 submissions and the American Community Survey, this article studies the role of location and density in the operations of nonprofits using generalized additive models. After controlling for organizational and neighborhood features, the results show substantial variation in the effect of location on total and contributed revenue. Nonprofit density is positively associated with the location effects across a range of distances. The results suggest organizations benefit greatly from locating in high-density regions and may be most sensitive to variation in density in their immediate proximity. The study emphasizes location dependence through the importance of location and the intra-county distribution of nonprofits.

Social capital and the nonprofit infrastructure; an ecological study of child maltreatment.

Child maltreatment is a significant social problem that responds to neighborhood conditions, including disorder and support. Using administrative sources with the census response rate and geocoded nonprofit tax forms in a cross-sectional ecological design (N = 443), this article explores two understudied supportive factors in neighborhoods: aggregate social capital and nonprofit organizations. A series of Poisson models show aggregate social capital and nonprofit density are negatively related to child maltreatment rates, while the relationship between social capital and child maltreatment rates varies by the number of nonprofits present in the neighborhood. The results provide new insights into the ecology of child maltreatment and illustrate the importance of norms and formal organizations when addressing collective action problems.

Individual- and Community-Level Factors Associated With Voluntary Participation

Voluntary participation in local groups or organizations varies by individual and across communities. Few studies examine the influence of structural resources on voluntary participation, with prior studies often considering it a single, binary action. Drawing from three data sources, we examined the extent to which individual-level and community-level factors—including the presence of nonprofit organizations—were associated with voluntary participation. We model participation as two distinct actions and estimate the likelihood of respondents participating in one organization or group compared with the likelihood of participating in multiple organizations or groups. We found individual characteristics such as homeownership, marriage, and better health were associated with participation in only one group or organization. Identifying as White, having some college education, more children per household, and church attendance were positively associated with participating in one group or organization and subsequent participation. At the community level, nonprofit density was positively associated with voluntary participation.

The Geography of Grantmaking—Does Location Matter? Neighborhood Effects and Foundation Philanthropy

The neighborhood effects scholarship in urban sociology demonstrates the importance of geographic location to many social outcomes previously thought to be solely determined by individual characteristics (e.g. educational attainment). This article applies the theory and methods of neighborhood effects research to the study of community-based nonprofit organizations. If neighborhood composition and processes matter for individuals, do they also influence organizational outcomes such as resource procurement? An analysis of foundation grantmaking in the city of Chicago reveals that nonprofits’ ability to secure grants is influenced by both organizational and neighborhood characteristics. Larger, younger nonprofits with lower debt ratios, engagement in local networks and a previous record of foundation funding, are more likely to secure foundation support. While organizational factors matter, securing grants is also independently influenced by a nonprofit’s neighborhood location. Nonprofits in neighborhoods with a lower percentage of households in poverty, higher nonprofit density, and evidence of government grant support are more likely to receive foundation grants. We find neighborhood effects for nonprofit organizations for the outcome of resource procurement, specifically securing foundation grants. The article considers implications of these findings for nonprofits and the populations they serve.

Advancing the pursuit of the United Nations Sustainable Development Goals: Initiatives of selected publicly listed companies in the Philippines

Advancing the pursuit of the United Nations Sustainable Development Goals: Initiatives of selected publicly listed companies in the Philippines

Nonprofit Density and Distributional Equity in Public Service Provision: Exploring Racial/Ethnic Disparities in Public Park Access across U.S. Cities

AbstractExisting research on the distributional impacts of nonprofits and philanthropy focuses on how different groups directly benefit from nonprofit service providers. Given the increasing roles nonprofits play in public service provision and urban governance, it is critical to examine how the nonprofit sector may influence the distribution of public services. Combining the literature from urban affairs and nonprofit studies, we propose a theoretical framework to articulate various pathways through which communities with a larger nonprofit sector may create favorable conditions for public services to be distributed to certain racial–ethnic groups. We further test this framework using a unique geospatial dataset of public park access by different racial–ethnic groups in 2,392 U.S. cities. Our findings indicate that communities with a higher density of park‐supporting nonprofits generate better park access for all racial–ethnic groups. However, more benefits accrue to whites than to other racial–ethnic groups.

NON-PROFIT ORGANIZATIONS DENSITY, SOCIALLY VULNERABLE CATEGORIES AND ECONOMICAL DEVELOPMENT FROM VOLUNTARY AND GOVERNMENT FAILURE THEORIES PERSPECTIVE

Non-profit organizations have an important role in democracy development, volunteering and in providing support for disadvantaged social categories whose access to social and medical services or to goods of current necessity is reduced. Recent studies prove that local social sustainability correlates to non-profit organizations density at a local or regional level. Previous research encompasses two directions for the study of the role of non-profit organization the first is supported by the Theory of Government and Market Failure, and the second by the Theory of Voluntary Failure. The Theory of Government and Market Failure starts from the assumption that non-profit sector developed as a result of the need for social services provided to categories of population for whom government and market failed to provide to an affordable price or constantly. The Theory of Voluntary Failure starts from the assumption that non-profit sector plays the most important role in case of socio-economic crises or catastrophes but for organizations to perform well the support of the state is needed. This research aim is the assessment of non-profit density correlation to economic development and percentage of the social vulnerable population in Romania. This paper brings theoretical contribution to the study of the non-profit density, to the Theory of Government and Market Failure and to the Theory of Voluntary Failure and practical implications to an emerging economy.

The Prevalence of Ethnic, Cultural, and Folk Nonprofit Organizations in Increasingly Diverse Communities: A Case of Demand Heterogeneity

Building on the nonprofit density literature, we examine county-level factors that are linked to the growth of ethnic, cultural, and folk (ECF) nonprofits, a vital but often overlooked subfield of nonprofits. We draw county-level nonprofit, demographic, socioeconomic, and government data from 1995 to 2015 to examine how community factors, particularly immigrant and racial/ethnic composition, are associated with the number of ECFs. We pay particular attention to the influence of Asian and Hispanic populations, the two largest U.S. immigrant groups, and run national-origin subanalyses. Results suggest that ECFs have increased in counties experiencing new immigrant population growth. However, our study suggests that the growth in ECFs has not been evenly distributed across racial/ethnic groups, and there are important national-origin disparities among Asians and Hispanics. We conclude with a discussion of the importance of attending to how ECFs can support the needs of different racial/ethnic groups to better integrate U.S. communities.

The Influence of Spatial Density of Nonprofits on Crime

Nonprofits have been posited to have benefits for communities and neighborhoods, including reduction of crime. Empirical research has provided mixed results. Drawing on both criminological and theories of public organization and organizational ecology, this article examines the effects of nonprofit density on neighborhood crime in Denver, Colorado, between 2010 and 2015. Controlling for demographic and environmental influences, as well as the effects of spatiotemporal autoregression, results suggest that a higher density of both place-based and generic nonprofits ameliorate rates of crime. In contrast, nonprofits focused on crime reduction have a significant positive curvilinear effect on several types of crime. Findings also suggest that while nonprofits at the micro-ecological level increase crime to a point, the impact is negligible compared with other factors. Moreover, a relatively high density of place-based or generic nonprofits may have some benefits at higher densities, indicating a synergistic effect.

Localizing Sustainable Development Goals: Nonprofit Density and City Sustainability

One of the 17 sustainable development goals established by the United Nations refers to the creation of sustainable cities and communities. Using a 12-year longitudinal dataset on 100 U.S. communit...

The Density of Nonprofit Organizations: Beyond Community Diversity and Resource Availability

This paper examines the determinants of the density of nonprofits registered in the USA by using alternative measures of government services and community conditions to test government failure theory and interdependence theory. Specifically, we examined the relationship between governments and nonprofits in the fields of art, health, and human services, with an emphasis on the level of the provision of public services, the heterogeneous demands of populations, and for-profit service providers. We found that the size of government, measured as government wage and fiscal decentralization, was negatively associated with the density of nonprofits, while government fragmentation was positively related to the density of nonprofits. The heterogeneity of community populations tended to increase nonprofit density. Taken together, therefore, our results offer more support for the government failure theory than the interdependence theory. Also, our findings that for-profit service organizations were positively related to the density of nonprofits call for researchers to pay attention to nonprofit partners and competitors in future studies.

Membership Organization’s Social Capital and the Impact on Nonprofit Sector Management

ABSTRACTSocial capital depicts the extent of mutual trust in a jurisdiction. This study examines the impact of organizational social capital (OSC) on nonprofit (NP) density. Prior studies have argued that OSC positively impacts the community and the organization itself. These studies are either theory- based or survey based. Few available empirical studies also do not examine the OSC of all the counties of the United States. This study overcomes these limitations and finds from the US county-level empirical study that social capital advanced in membership organizations is positively associated with the growth of NP density.

Public Sponsorship and the Adoption of New Practices in the Homeless Shelter Industry

Homelessness is one of the most persistent social problems facing contemporary society. For decades, the federal government has been a key source of support for the nonprofit organizations that provide shelter and other services to the homeless. However, in the 21st century, dramatic increases in public funding have corresponded to the rapid diffusion of a new practice, the Permanent Supportive Housing shelter model, across this organizational population. We build on the nascent theory of public sponsorship to ask how sponsorship relates to the adoption of new practices. Taking into account sponsoring entity goals and incentives, we hypothesize that sponsorship increases sponsor- preferred practice adoption. Furthermore, we explore the environmental contingencies inherent in this relationship, predicting that local nonprofit density and network closure increase this relationship, while social problem size attenuates it. Using multilevel modeling, we test our hypotheses on a rich dataset of all homeless sh...

Understanding the density of nonprofit organizations across Los Angeles neighborhoods: Does concentrated disadvantage and violent crime matter?

Although some urban sociology perspectives suggest how certain sociodeomgraphic characteristics influence nonprofit development, there is a dearth of empirical research to assess neighborhood differences in nonprofit organizations. The goal of the current study is to build upon the extant literature by examining how both concentrated disadvantage and violent crime impact nonprofit density across neighborhoods. Using data from Los Angeles census tracts from 2010 to 2012, I test for linear and nonlinear influences that these two neighborhood factors might exert on nonprofit density. Poisson regression models show that concentrated disadvantage has a nonlinear (U-shaped) effect on all forms of nonprofit density, whereas violent crime has a linear and deleterious effect on all forms of nonprofit density. These results provide important new insights for urban sociology and policy; most importantly, the extent to which neighborhoods with ongoing social problems can later respond to such problems via access to nonprofit organizations.

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.

Análise de colaborações entre governo e ONGs e da densidade de ONGs no Brasil

Esta pesquisa analisa os efeitos da densidade de organizações sem fins lucrativos (ONGs) e da colaboração entre governo e ONGs no desenvolvimento humano e na desigualdade de renda no Brasil. Estudos de governança afirmam que a colaboração do governo com ONGs leva a melhores resultados sociais. Esta pesquisa testa essa hipótese em 5.562 municípios brasileiros usando modelos lineares e espaciais. Análises espaciais permitem a identificação de efeitos específicos ocorrendo em diferentes regiões. A taxa de convênios entre o governo federal e ONGs em cada município brasileiro está associada a uma diminuição da desigualdade de renda, porém está também associada a uma significativa queda do nível de desenvolvimento humano. A densidade de ONGs de diferentes áreas de atividade apresenta diversas relações com desenvolvimento humano e desigualdade. Esses resultados permitem uma análise mais realista de arranjos de governança, considerando seus impactos nas comunidades e as realidades locais.

What Influences the Location of Nonprofit Organizations? A Spatial Analysis in Brazil

What are the local characteristics influencing where new nonprofits will be established? How important are community needs, available resources, or the existence of similar organizations for nonprofits’ location? This paper analyzes how the characteristics of 5562 Brazilian municipalities in the year 2000 help explain the location of nonprofits formed between 2001 and 2010. Based on geographically weighted regressions, results indicate that neither access to resources nor poor socioeconomic indicators are powerful influences on nonprofit location in Brazilian municipalities. The main predictor of nonprofit entry is a high pre-existing density of nonprofits in that area. These findings, however, vary across regions and nonprofit fields of activity. By mapping the effect of key explanatory variables, this paper helps understand nonprofit location. The methodology and findings on nonprofit location presented here are novel and may contribute to research in other countries.

Socioeconomic Diversity, Political Engagement, and the Density of Nonprofit Organizations in U.S. Counties

This study examines the hypothesis that a community’s heterogeneous demands for public service, represented by a community’s income inequality and racial-ethnic diversity, together with its level of political engagement, help explain the density of nonprofits in a local area. Using data on more than 3,000 U.S. counties, empirical analyses reveal that communities with a higher level of income inequality and political engagement tend to have more nonprofits per resident than otherwise similar communities. This pattern holds for the nonprofit sector overall and for 6 of the 10 major subsectors examined. These findings suggest that nonprofit organizations may fill a gap in the delivery of public services, especially when a community has a great variety of social and economic needs. This study thus highlights the role of income inequality as a factor in explaining the density of nonprofit organizations at the local level. Implications for public policy and administration are discussed.