The Governance of Nonprofit Organizations: Empirical Evidence From Nongovernmental Development Organizations in Spain

Abstract

To verify the existence and relevance of control mechanisms that impede the expropriation of resources by the managers of nonprofits and that improve efficiency, we use a representative sample of Spanish nongovernmental development organizations (NGDOs). The authors study how the donors’ structure and board of trustees relates to organizational efficiency. Results show that the presence of an active institutional donor provides a control mechanism for these NGDOs, thus favoring the efficient allocation of resources, and that the structure of the board of trustees is irrelevant in this respect. Results are robust to alternative measures of technical and allocative efficiency.

The Prospective Role of Economic Stakeholders in the Governance of Nonprofit Organizations

“…Other studies tease out the impact of particular board constituencies on resource development or organizational performance. For example, Jegers (2009) found that donor representation on nonprofit boards tends to reduce administrative costs, Callen et al (2003) found that major donor representation on nonprofit boards increases organizational efficiency, and Andres- Alonso et al (2006), in a study of nongovernmental development organizations in Spain, found that active institutional donor representation on governing boards increased organizational efficiency as well. Alternatively, Le Roux (2009) found that government funding mediates paternalistic tendencies of private donors.…”

The Governance of International Nongovernmental Organizations: How Funding and Volunteer Involvement Affect Board Nomination Modes and Stakeholder Representation in International Nongovernmental Organizations

“…Given these important studies and the existence of various theoretical models that deal with the governance of CSOs, the field is methodologically mature (Edmondson and McManus 2007). Nevertheless, past research in the field is mostly limited to qualitative, descriptive studies of different aspects of governance and structure and only very few quantitative empirical studies are available (Andrés-Alonso et al 2006;Iecovich 2005a). Quantitative studies can yield important contributions to the field by providing an empirical overview of the sector which is equally valuable for practitioners and researchers, testing the hypotheses gained by the qualitative endeavors and by determining on which factors governance attributes depend in practice.…”

Private Donations, Government Grants, Commercial Activities, and Fundraising: Cointegration and Causality for NGOs in International Development Cooperation

“…Yet the government's "stamp of approval" may be particularly effective in inducing private donations if private leadership giving is hard to find, e.g., when the required seed money is more than any private donor can possibly afford to pay. 10 See also Khanna and Sandler (2000) as well as Andrés-Alonso et al (2006). 11 Examples include Okten and Weisbrod (2000), Khanna and Sandler (2000), and Heutel (2009). 2012b).…”