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

Abstract:

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
SchoolCAPELLA UNIVERSITY
Source TypeDissertation
SubjectsManagement; Organizational behavior
Publication Number3473397

About ProQuest Dissertations & Theses
With nearly 4 million records, the ProQuest Dissertations & Theses (PQDT) Global database is the most comprehensive collection of dissertations and theses in the world. It is the database of record for graduate research.

PQDT Global combines content from a range of the world's premier universities - from the Ivy League to the Russell Group. Of the nearly 4 million graduate works included in the database, ProQuest offers more than 2.5 million in full text formats. Of those, over 1.7 million are available in PDF format. More than 90,000 dissertations and theses are added to the database each year.

If you have questions, please feel free to visit the ProQuest Web site - http://www.proquest.com - or contact ProQuest Support.