Understanding Constraints on Nonprofit Leadership Tactics in Times of Recession

Abstract

The impact of the global recession has served to increase resource pressures on voluntary organizations in many social service sectors, serving to constrain the choices that organizational leaders can make in the face of changing resource niches. Not all organizational leaders face the same set of viable choices in the face of both changing demands from funding bodies and highly dynamic resource niches. Drawing on theories of organizational change, it is possible to identify three key factors that will serve to limit the tactics that voluntary organizations can employ: niche-level dynamics, niche density, and the presence of organizational champions. These three factors are illustrated through an analysis of the effects of the economic recession in Northern Ireland on two subsectors: community development and youth-serving organizations. We conclude with a call for greater theoretical and empirical development of the resource niche as the appropriate unit of analysis.Discussions of global recession have created a sense of unease, if not outright panic, in the minds of citizens throughout the world. The rapid nature of the economic decline and a sense of having no control over one's own destiny has created a unique situation

Spenders or Savers? An Examination of the Reserves of Australian NGOs

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Local Government Budget Stabilization

“…Calabrese ( 2013 ) found that 40 % of nonprofi t organizations had no operating reserves and that the median held only 1 month of operating expenditures in reserves. Faced with a sudden and rapid escalation of demand and profound cuts in funding from all sources, many organizations have had to respond with cost-cutting measures to mitigate their diminished funds (Harrison et al 2011 ;Morreale 2011 ;Mosley et al 2012 ;Never 2010 ). These types of measures are costly in terms of negative impacts for the individuals seeking help and for the organization's ongoing capacity.…”

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