Is it more difficult to replace the volunteer directors of non‐profit organizations that have recourse to public funds? Evidence from France

Abstract

Many non‐profit organizations experience difficulties in replacing the members of their boards of volunteer directors. And yet, despite the rich literature on the governance of these organizations, such difficulties have been investigated only to a very limited extent. The present article seeks to ascertain whether there is a correlation between these difficulties and the share of public funds in the resources of French non‐profit organizations. To that end, this study draws on a database derived from a survey of these organizations that remains without precedent in France. The investigation reveals a positive correlation between the expression of that difficulty in replacing directors and the extent to which organizations’ financial resources are dependent on public funds. However, this correlation is confined to certain fields of activity, notably the social and charitable field. Moreover, it is not linear. It generally tends to stabilize beyond a 25% threshold of dependency on public financing.

The internal organizational performance influence factors study-an empirical test

“…The Board and management share a common vision for the governance of non-profit organizations. Prouteau believes that the key to improving the performance of non-profit organizations is that the board of directors should change and measure the relationship between the organization and financial resources and other issues [ 18 ]. Bradford et al believe that governance plays an important role in non-profit organizations, and the level of time and energy invested by board members will also directly affect the quality of the board’s decision-making and supervision work, thus affecting the performance level of the organization [ 19 ].…”