Determinants of non-profit commercialism. Resource deficits, institutional pressures or organizational contingencies?

Suykens, Ben; George, Bert; Rynck, Filip De; Verschuere, Bram

doi:10.1080/14719037.2020.1764083

Cited by 27 publications

(38 citation statements)

References 57 publications

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“…Pospíšil and Hyánek (2009) notes that in the 'postcommunist' model of providing public services, governments are unwilling to give up the monopoly of public and state organizations and recognise the non-profit sector as an alternative and independent service provider. Suykens et al (2020) stress that institutional and regulatory barriers, as well as organizational contingencies in CEE countries influence the dependence of non-profit organizations on resources and their commercialization. They also affect the possibilities non-profits have in fulfilling their social mission (Noakova, 2020).…”

Section: Long Term Implications Of the Researchmentioning

confidence: 99%

What affects employment by NGOs? Counteraction to precarious employment in the Polish non-profit sector in the perspective of COVID-19 pandemic crises

Mikołajczak

2021

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Research background: The precarious employment in non-governmental organizations has not been the subject of thorough scientific considerations so far. Meanwhile, the dominance of flexible forms of employment in an organization evokes a sense of instability, insecurity and uncertainty among employees. It weakens the relationship between staff and the organization, which, by not providing employees with prospects for permanent employment, creates a threat to its own development. The COVID-19 pandemic is reinforcing these fears as the situation in the labour market continues to deteriorate. Purpose of the article: The purpose of this study is to identify the factors affecting NGOs employment of contract employees, as a key condition for crowding out precarious employment. Methods: Logistic regression analysis was conducted based on a national representative survey of 1500 Polish NGOs. Findings & value added: Its results indicate that NGOs are increasing the employment of contract staff in order to cope with the excessive bureaucracy of public administration. A stimulating impact on employment is also provided by difficulties in maintaining good staff and volunteers, as well as when there is no sense of security in running an organization. In turn, the lack of people ready to selflessly get involved in an organization's activities, as well as difficulties in accessing premises appropriate to NGOs both reduce the desire among staff to be employed full-time. The monitoring of precarious employment (PE) in NGOs is of key importance in the shaping and effectiveness of national policies aimed at improving the living standards of society as a whole. NGOs are an important element, as they fill the gaps remaining in the implementation of such policies. In the long term, improving the quality of full-time employment in such entities by reducing the barriers to their activity will increase their potential for fulfilling their social mission. To date, such barriers and their relation to employment have not been considered in research literature. However, a considerable proportion of employees in the Polish NGO sector may join the ranks of those excluded from employment and deprived of income due to the crisis on the job market caused by the COVID-19 pandemic. This article contributes to the existing literature and practice by identifying the influence of wide spectrum of barriers of NGOs activity on permanent employment.

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Section: Long Term Implications Of the Researchmentioning

confidence: 99%

What affects employment by NGOs? Counteraction to precarious employment in the Polish non-profit sector in the perspective of COVID-19 pandemic crises

Mikołajczak

2021

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“…Commercialization is arguably a double-edged sword for NPOs (Suykens et al 2020b). On the one hand, improved organizational autonomy vis-à-vis institutional stakeholders (Khieng and Dahles 2015;Vaceková et al 2017) as well as increased financial stability by means of crosssubsidization and revenue diversification are often lauded as positive outcomes of nonprofit commercialization (Dart 2004a;Enjolras 2002;Khieng and Dahles 2015;Toepler 2006).…”

Section: Effects Of Nonprofit Commercializationmentioning

confidence: 99%

“…Nonprofit commercial income is a catch-all concept for both missionrelated and mission-unrelated streams of revenue (Toepler 2006; Weisbrod 1998) as it generally includes "program service fees; the sale of products not directly associated with the charitable activity; contracts to deliver services on behalf of a third party; profits from for-profit subsidiaries; and fees for endorsing products" (McKay, Moro, Teasdale, & Clifford, McKay et al 2015, p. 340). Typical examples of mission-related income are "services fees," while mission-unrelated income can include income generated through raffles, sale of gadgets, and renting out organizational space (Suykens et al 2020b). Ebrahim et al (2014) refer to organizations relying primarily on the former as "integrated hybrids" (i.e., NPOs with commercialized core activities), and to those relying on the latter as "differentiated hybrids" (i.e., NPOs with commercial ancillary activities).…”

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confidence: 99%

Nonprofit Commercialization

Suykens¹,

Verschuere²

2021

International Encyclopedia of Civil Society

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Nonprofit commercialization refers to the process of nonprofit organizations (NPOs) becoming increasingly reliant on income resulting from the profitable sale of services and goods (Brown 2018;Guo 2006), thereby becoming more like for-profit enterprises (Suykens et al. 2019b). Nonprofit commercialization is commonly viewed as a key element of both "NPOs becoming businesslike" (Dart 2004a;Maier et al. 2016) and social entrepreneurship (Defourny and Nyssens 2010;Khieng and Dahles 2015). Nonprofit commercial income is a catch-all concept for both missionrelated and mission-unrelated streams of revenue (Toepler 2006; Weisbrod 1998) as it generally includes "program service fees; the sale of products not directly associated with the charitable activity; contracts to deliver services on behalf of a third party; profits from for-profit subsidiaries; and fees for endorsing products" (McKay, Moro, Teasdale, & Clifford, McKay et al. 2015, p. 340). Typical examples of mission-related income are "services fees," while mission-unrelated income can include income generated through raffles, sale of gadgets, and renting out organizational space (Suykens et al. 2020b). Ebrahim et al. (2014) refer to organizations relying primarily on the former as "integrated hybrids" (i.e., NPOs with commercialized core activities), and to those relying on the latter as "differentiated hybrids" (i.e., NPOs with commercial ancillary activities). When operationalizing commercial income, it is important to consider the institutional particularities of the research context at hand. In contrast to Anglo-Saxon countries for instance, income generated through public service contracts is considered an integral part of the public welfare mix in corporatist welfare states, and thus is viewed as publicinstead of commercialincome (Evers and Laville 2004).

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“…In this study, we sought to understand the current scenario of the management of third sector entities, specifically to check how much the instituted practices are adhering to guidelines aimed at compliance. Although research [32,33,34,35,36] discuss management practices in the third sector, there are still few studies addressing the importance of the compliance culture in organizational sustainability in third sector entities, as well as in meeting their social responsibility. Controllership and corporate governance models are needs of the third sector that expand and modify in the same proportion of the growth and importance that these entities represent for social development.…”

Section: Introductionmentioning

confidence: 99%

Adequacy of Management Practices in Social Organization in the Health Area in Face of Compliance Guidelines Established by Brazilian Organization

Slomski¹,

Brito²,

Slomski³

et al. 2022

Preprint

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To determine the adequacy of management practices in Social Health Organization (SHO) in face of compliance guidelines established by Brazilian organizations. This was qualitative research. Data were gathered through interviews and documentary analysis and were analyzed through the interpretation of significances and content analysis. The entity structures the compliance function based on three axes: a) normative - institutionalization of the integrity program, ethical conduct, internal controls and risk management; b) commercial - institutionalization of mechanisms aimed at transparency and accountability of the funds raised. However, the Covid-19 pandemic generated unforeseen contingencies such as accountability for funds from private donations; c) organizational - adherence by top management in maintaining a structure for inspection and control of the institution’s processes and behaviors in the market in which it operates. Based on the analysis of documents there is 76% adequacy of adherence of management practices to the compliance guidelines. It is concluded that organizations that depend on resources and understand that the subsidies they receive, whether government, whether public or private donations, will make the necessary efforts to ensure high levels of compliance, their choices and conduct preserve their image and the achievement of greater credibility and legitimacy.

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Determinants of non-profit commercialism. Resource deficits, institutional pressures or organizational contingencies?

Cited by 27 publications

References 57 publications

What affects employment by NGOs? Counteraction to precarious employment in the Polish non-profit sector in the perspective of COVID-19 pandemic crises

What affects employment by NGOs? Counteraction to precarious employment in the Polish non-profit sector in the perspective of COVID-19 pandemic crises

Nonprofit Commercialization

Adequacy of Management Practices in Social Organization in the Health Area in Face of Compliance Guidelines Established by Brazilian Organization

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