A study of the correlation between nonprofit board member financial contributions and organizational financial sustainability

by Pins, Sharon H., Ph.D., CAPELLA UNIVERSITY, 2011, 202 pages; 3473397


Nonprofit organizations have historically depended on the board of directors for governing expertise in fulfilling its mission and for decision-making strategies in reaching long-term goals. Fundamental, however, to the organization’s success in reaching long-term goals is its ability to maintain adequate and predictable levels of funding. The goal of this quantitative correlational study was to test a social learning view of the public and a resource dependency view of the organization on a sample of nonprofit board members; in order to examine the impact of the nonprofit board’s financial behavior on the organization’s financial performance. Using a survey design, this quantitative study found a significant correlation between board member contributions and organizational financial sustainability; and between board member contributions and public financial support. A random sample of 246 participants was obtained from the target population of 589 nonprofit organizations that constitute the current organizational membership of a regional support center in North Texas. This research provided evidence which challenges the current mindset of nonprofit boards, supporting a radically different approach to nonprofit organizational financial soundness; placing the burden and obligation on the board of directors through personal financial contributions and the acquiring of board-generated major public financial support in the community. Examining and clarifying the relationship between the variables helps to support strategic board-generated funding strategies. Results suggest that healthy levels of total board financial participation help to strengthen and secure the nonprofit organization’s long-term financial sustainability; which in turn may help to revolutionize and strengthen the nonprofit sector as a whole.

AdviserCandis Best
Source TypeDissertation
SubjectsManagement; Organizational behavior
Publication Number3473397

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