This study analyzed the resource characteristics of a sample of university foundations and identified five distinct strategic groups. We found significant performance differences among them. Specifically, the group that focused most heavily on fundraising activities had the highest financial performance. Also performing well was the group with the highest ratio of contributions to total revenues combined with the highest level of slack. The research and managerial implications of this study' s findings are discussed.
INCREASED DEMAND for nonprofit organization accountability, coupled with competition for funding from private and governmental entities, continues to fuel the need for further study of nonprofit organization effectiveness and performance. Recent studies centering on performance measurement testify to the importance of this area of inquiry (Brown and Moore, 2001;Forbes, 1998;Friedman and Phillips, 2004;Herman and Renz, 1999;Ritchie and Kolodinsky, 2003;Rojas, 2000;Sargeant, 2001). This stream of research has provided a foundation for researchers to explore a variety of antecedents to organizational performance, yielding many fruitful research findings. One area of growing research interest is the realm of organizational strategy formulation and its performance consequences. For example, much has been written about the efficacy of managerial tools used in the formulation of nonprofit organization strategy (Barry, 1997;Bryson, 1995;Stone, Bigelow, and Crittenden, 1999;Stone and Crittenden, 1993). In related literature, Miles and Snow' s strategic types (1978) have been applied in the context of the nonprofit sector to establish relationships with board structure (Brown and Iverson, 2004). Other studies have investigated causal relationships between strategy and nonprofit performance such as board involvement in strategic planning (Green and Griesinger,