The Effect of Large Corporate Donors on Non-profit Performance

Finley, Andrew R.; Hall, Curtis M.; Harris, Erica; Lusch, Stephen J.

doi:10.1007/s10551-020-04516-2

Cited by 7 publications

(7 citation statements)

References 46 publications

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“…While cooperation among NPOs nurtures the creation of value (Klafke et al, 2019), competition among them brings about efficiency in areas as different as obtaining financing and the provision of services to third parties (Buonomo et al, 2020). Donors from the private sector return a positive effect on the performance of NPOs that rises to the extent that the corporate donor-NPO relationships extend across various periods, consistent with the enhanced capacity of regular donors to wield greater influence over a particular NPO (Eng et al, 2011;Finley et al, 2020). Currently, donors are already more attentive to the final destination given to their support, and to transparent and efficient management methods (do Adro & Leitão, 2020).…”

Section: Networkmentioning

confidence: 83%

The impact of innovation management on the performance of NPOs: Applying the Tidd and Bessant model (2009)

Adro

Fernandes

Veiga

2022

Nonprofit Mgmnt & Ldrshp

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The literature is consistent in stating that innovation helps in improving the performance of nonprofit organizations (NPOs), highlighting how there remains the scope for further research designed to better understand the dimension supporting social innovation. Through the application of the Tidd and Bessant model, which reflects an important contribution to this specific sector, this study seeks to meet a shortcoming in analyzing just which innovation management factors influence the performance of NPOs. To this end, we applied a quantitative methodology based on a survey made of Portuguese NPOs that received a total of 135 valid responses. Based upon the application of multiple linear regression models, this study concludes that there are five innovation management models with a positive impact on NPO performance levels. In terms of the implications, these results, consistent with earlier research of a different nature, strengthen the idea that private business sector methods may undergo successful adaptation to the social sector and assist such entities to implement measures that offset their organizational, and consequent financial, weaknesses.

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Section: Networkmentioning

confidence: 83%

The impact of innovation management on the performance of NPOs: Applying the Tidd and Bessant model (2009)

Adro

Fernandes

Veiga

2022

Nonprofit Mgmnt & Ldrshp

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“…Several measures of operational efficiency have been used in the existing literature (Finley et al, 2021; Lamboy‐Ruiz et al, 2019; Zhu & Sarkis, 2004). From the perspective of organizational operation, operational efficiency is an indicator of a firm's resource utilization and is a function of productivity per unit cost (Stuebs & Sun, 2010).…”

Section: Methodology and Datamentioning

confidence: 99%

Does corporate environmental responsibility contribute to financial performance? A dual path analysis through operational efficiency and the cost of debt

Gao

Wan

2022

Corp Soc Responsibility Env

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Given the growing environmental awareness among stakeholders, firms are increasingly been asked to act in an environmentally responsible manner. However, the relationship between corporate environmental responsibility (CER) and corporate financial performance is quite mixed. This study aims to examine the impact of CER on financial performance and explores the mediating effects of operational efficiency and the cost of debt. A firm‐level panel data of 2173 Chinese listed firms are analyzed. The results show that efforts and investments in CER positively and directly affect financial performance. Operational efficiency and cost of debt mediate the relationship between CER and financial performance. This study contributes to the stakeholder theory and highlights that CER can promote corporate financial performance by improving operational efficiency and reducing the cost of debt. This study also has practical implications and highlights the importance of enhancing operational management and information communication in the course of CER practices.

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“…Financial performance is not the main objective of these organizations but reflects only one fundamental aspect: if these organizations fail to acquire and use financial resources effectively, they might not sustain themselves and pursue their charitable mission (e.g., Kirk & Nolan, 2010). For this reason, to estimate an FCO's performance we used a set of financial and non-financial performance measures that capture varying aspects of performance, can be constructed using publicly available data, facilitate comparisons across different FCOs, and are commonly used in prior non-profit literature (e.g., Finley et al, 2021). 5 Our first proxy is revenues ratio (RER), measured as the ratio of total revenues to total number of employees for an FCO i in year t. RER captures employees' efficiency in securing funds and delivering services.…”

Section: Dependent Variablesmentioning

confidence: 99%

“…A higher ratio represents a better FCO's performance as it captures a higher public support and the FCO's ability to obtain funds; that is a performance metric of primary concern to stakeholders (e.g., Brown & Harris, 2022). Our second proxy is fundraising ratio (FundR), measured as the ratio of fundraising revenues less fundraising expenses to fundraising revenues for an FCO i in year t. These two proxies are based upon the notion that a non-profit organization's ability to collect financial resources is an important measure of its performance, as it helps its survival and growth (e.g., Finley et al, 2021). Our third proxy is number of persons served (NPS), which is measured as the natural logarithm of total persons served by an FCO i in year t. NPS is a non-financial performance that accounts for management effectiveness, based upon the notion that serving a higher number of persons reflects upon an organization's ability to outreach and cater for the 5 We acknowledge that an alternative approach advocates the use of subjective measures based on stakeholders' perceptions of organizational effectiveness.…”

Section: Dependent Variablesmentioning

confidence: 99%

“…For this reason, CEOs are expected to greatly influence what happens to their organization (Hambrick, 2007). However, while studies in corporations may, to some extent, help inform the non-profit sector, there are important differences between profit and non-profit organizations (e.g., Finley et al, 2021;Hyndman & McDonnell, 2009), including the role of CEOs and their motivation to serve in these organizations (e.g., Brown & Harris, 2022). It is, therefore, an open and important question as to whether and how specific CEOs' personal traits influence a non-profit organization's performance.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of CEOs’ Personal Traits on Organisational Performance: Evidence from Faith-Based Charity Organisations

Melis

Nawaz

2023

J Bus Ethics

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This study examines whether and how a CEO’s personal traits (gender, altruism, age, and founder) influence organizational performance. Building upon upper echelons theory, this study develops a conceptual framework that gives explicit recognition to how the institutional environment surrounding the CEOs shapes their characteristics, which, in turn, are reflected in the different organizational strategies and performance. This study moves beyond the existing focus on for-profit corporations and conducts the empirical analysis on a novel, hand-collected, longitudinal dataset of 1342 firm-year observations of 128 faith-based charity organizations operating in a major developing, Muslim-majority country in the period 1996–2019. This study reveals that those faith-based charity organizations led by CEOs with specific personal traits (woman, altruistic, young, and founder) exhibit better organizational performance. Importantly, CEOs’ personal traits, however, do not have a uniform, systematic effect; their effect is generally strengthened when the CEO is also the founder of the faith-based charity organization, given the greater latitude of managerial discretion that a CEO has in managing the organization. Our findings have important implications for individual charity organizations; their board of directors; and their stakeholders, in particular the communities they serve, as well as the whole society where they operate.

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The Effect of Large Corporate Donors on Non-profit Performance

Cited by 7 publications

References 46 publications

The impact of innovation management on the performance of NPOs: Applying the Tidd and Bessant model (2009)

The impact of innovation management on the performance of NPOs: Applying the Tidd and Bessant model (2009)

Does corporate environmental responsibility contribute to financial performance? A dual path analysis through operational efficiency and the cost of debt

The Impact of CEOs’ Personal Traits on Organisational Performance: Evidence from Faith-Based Charity Organisations

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