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Nonprofit Organization Governance

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A Theoretical Review

image of Voluntaristics Review

Organizational governance has become a popular and important topic in the nonprofit sector literature. This review focuses on the governance of non-membership, paid-staff nonprofit organizations (also called nonprofit agencies), which are characterized by a hierarchical structure, where the board has the ultimate power and the responsibility to ensure that governance functions are carried out. Such agency boards are usually self-perpetuating, unlike the situation in voluntary membership associations, where the members usually elect the board. We contribute to the literature on the governance of nonprofit organizations in three major ways. First, we discuss research themes identified by previous review articles, analyze empirical and conceptual contributions from the recent nonprofit organization governance literature, and identify a number of governance challenges for nonprofit organizations. Second, we present a wide array of theoretical perspectives from different disciplines that may be useful when studying the governance of nonprofit organizations. From a practical viewpoint this is important, as it may assist researchers in the theoretical framing of their papers and help them in the formulation of theory-based hypotheses. Third, we integrate a number of theoretical perspectives by using a paradox perspective. We focus on four important contemporary governance challenges in nonprofit organizations: (1) stakeholder accountability, (2) environmental dependence, (3) volunteer reliability, and (4) board group dynamics. By using a multi-theoretical approach to analyze the ambiguities, paradoxes, and dilemmas associated with these governance challenges, we provide more general theory-based frameworks for the governance of nonprofit organizations than currently available in the literature.

Affiliations: 1: University of Mannheim

10.1163/24054933-12340011
/content/journals/10.1163/24054933-12340011
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259. Lichtsteiner H. , Lutz V. "Use of self-assessment by nonprofit organization boards: The Swiss case" Nonprofit Management and Leadership 2012 Vol 22 4 483 506 http://dx.doi.org/10.1002/nml.21041
260. Nezhina T.G. , Brudney J.L. "Unintended? The effects of adoption of the Sarbanes-Oxley Act on nonprofit organizations" Nonprofit Management and Leadership 2012 Vol 22 3 321 346 http://dx.doi.org/10.1002/nml.20057
261. Nicholson G. , Newton C. , McGregor-Lowndes M. "The nonprofit board as a team: Pilot results and initial insights" Nonprofit Management and Leadership 2012 Vol 22 4 461 481 http://dx.doi.org/10.1002/nml.21040
262. Tucker B.P. , Thorne H. , Gurd B.W. "Uncharted waters: Exploring the relationship between strategy processes and management control systems in the nonprofit sector" Nonprofit Management and Leadership 2013 Vol 24 1 109 133 http://dx.doi.org/10.1002/nml.21083
263. Van Puyvelde S. , Caers R. , Du Bois C. , Jegers M. "Agency problems between managers and employees in nonprofit organizations: A discrete choice experiment" Nonprofit Management and Leadership 2013 Vol 24 1 63 85 http://dx.doi.org/10.1002/nml.21081
264. Vidovich L. , Currie J. "Governance networks: Interlocking directorships of corporate and nonprofit boards" Nonprofit Management and Leadership 2012 Vol 22 4 507 523 http://dx.doi.org/10.1002/nml.21042
265. Atibil C. "Democratic governance and actors’ conceptualization of “civil society” in Africa: State-civil society relations in Ghana from 1982–2000" Voluntas 2012 Vol 23 1 43 62 http://dx.doi.org/10.1007/s11266-011-9242-0
266. Bar-Nir D. , Gal J. "Who has the power? The role of npos in local authorities" Voluntas 2011 Vol 22 1 1 25 http://dx.doi.org/10.1007/s11266-010-9144-6
267. Berlan D. , Bruno-van Vijfeijken T. "The planned close of an ngo: Evidence for a new organizational form?" Voluntas 2013 Vol 24 1 262 275 http://dx.doi.org/10.1007/s11266-012-9300-2
268. Botetzagias I. , Koutiva E. "Financial giving of foundations and businesses to environmental ngos: The role of grantee’s legitimacy" Voluntas 2014 Vol 25 2 281 306 http://dx.doi.org/10.1007/s11266-012-9338-1
269. Breen O.B. "The perks and perils of non-statutory fundraising regulatory regimes: An Anglo-Irish perspective" Voluntas 2012 Vol 23 3 763 790 http://dx.doi.org/10.1007/s11266-011-9220-6
270. Chaney P. "Multi-level systems and the electoral politics of welfare pluralism: Exploring third-sector policy in UK Westminster and regional elections 1945–2011" Voluntas 2014 Vol 25 3 585 611 http://dx.doi.org/10.1007/s11266-013-9354-9
271. Chemin C. , Vercher C. "The challenge of activist coalition governance: Accommodating diversity to create institutions. An approach via the inter-relationships between action, project, and instrument" Voluntas 2011 Vol 22 4 682 705 http://dx.doi.org/10.1007/s11266-011-9201-9
272. Daly S. "Philanthropy as an essentially contested concept" Voluntas 2012 Vol 23 3 535 557 http://dx.doi.org/10.1007/s11266-011-9213-5
273. Ewert B. , Evers A. "An ambiguous concept: On the meanings of co-production for health care users and user organizations?" Voluntas 2014 Vol 25 2 425 442 http://dx.doi.org/10.1007/s11266-012-9345-2
274. Harrison Y. , Murray V. , Cornforth C. "Perceptions of board chair leadership effectiveness in nonprofit and voluntary sector organizations" Voluntas 2013 Vol 24 3 688 712 http://dx.doi.org/10.1007/s11266-012-9274-0
275. Helmig B. , Ingerfurth S. , Pinz A. "Success and failure of nonprofit organizations: Theoretical foundations, empirical evidence, and future research" Voluntas 2014 Vol 25 6 1509 1538 http://dx.doi.org/10.1007/s11266-013-9402-5
276. Henriksen L.S. , Smith S.R. , Zimmer A. "At the eve of convergence? Transformations of social service provision in Denmark, Germany, and the United States" Voluntas 2012 Vol 23 2 458 501 http://dx.doi.org/10.1007/s11266-011-9221-5
277. Hug N. , Jager U.P. "Resource-based accountability: A case study on multiple accountability relations in an economic development nonprofit" Voluntas 2014 Vol 25 3 772 796 http://dx.doi.org/10.1007/s11266-013-9362-9
278. Jegers M. "Do nonprofit organizations manage earnings? An empirical study" Voluntas 2013 Vol 24 4 953 968 http://dx.doi.org/10.1007/s11266-012-9291-z
279. Kreutzer K. , Jacobs C. "Balancing control and coaching in CSO governance: A paradox perspective on board behavior" Voluntas 2011 Vol 22 4 613 638 http://dx.doi.org/10.1007/s11266-011-9212-6
280. Laforest R. "The role of ideas and interests in voluntary sector organizing: Some insights from Canadian scholarship" Voluntas 2014 Vol 25 5 1175 1191 http://dx.doi.org/10.1007/s11266-013-9432-z
281. Leiter J. "An industry fields approach to isomorphism involving Australian nonprofit organizations" Voluntas 2013 Vol 24 4 1037 1070 http://dx.doi.org/10.1007/s11266-012-9298-5
282. Maier F. , Meyer M. "Managerialism and beyond: Discourses of civil society organizations and their governance implications" Voluntas 2011 Vol 22 4 731 756 http://dx.doi.org/10.1007/s11266-011-9202-8
283. Manetti G. "The role of blended value accounting in the evaluation of socio-economic impact of social enterprises" Voluntas 2014 Vol 25 2 443 464 http://dx.doi.org/10.1007/s11266-012-9346-1
284. Marshall A. , Telofski R. , Ojiako U. , Chipulu M. "An examination of “irregular competition” between corporations and ngos" Voluntas 2012 Vol 23 2 371 391 http://dx.doi.org/10.1007/s11266-011-9205-5
285. Meyer M. , Buber R. , Aghamanoukjan A. "In search of legitimacy: Managerialism and legitimation in civil society organizations" Voluntas 2013 Vol 24 1 167 193 http://dx.doi.org/10.1007/s11266-012-9306-9
286. Murtaza N. "Putting the lasts first: The case for community-focused and peer-managed ngo accountability mechanisms" Voluntas 2012 Vol 23 1 109 125 http://dx.doi.org/10.1007/s11266-011-9181-9
287. Nikolova M. "Principals and agents: An investigation of executive compensation in human service nonprofits" Voluntas 2014 Vol 25 3 679 706 http://dx.doi.org/10.1007/s11266-013-9358-5
288. Pestoff V. "Co-production and third-sector social services in Europe: Some concepts and evidence" Voluntas 2012 Vol 23 4 1102 1118 http://dx.doi.org/10.1007/s11266-012-9308-7
289. Phillips S.D. "Canadian leapfrog: From regulating charitable fundraising to co-regulating good governance" Voluntas 2012 Vol 23 3 808 829 http://dx.doi.org/10.1007/s11266-011-9237-x
290. Phillips S.D. "Shining light on charities or looking in the wrong place? Regulation-by-transparency in Canada" Voluntas 2013 Vol 24 3 881 905 http://dx.doi.org/10.1007/s11266-013-9374-5
291. Pishchikova K. "Greater synergy and improved collaboration: Do complex partnerships deliver on the promise in countries emerging from armed conflict?" Voluntas 2014 Vol 25 1 2 27 http://dx.doi.org/10.1007/s11266-012-9313-x
292. Rehli F. , Jager U.P. "The governance of international nongovernmental organizations: How funding and volunteer involvement affect board nomination modes and stakeholder representation in international nongovernmental organizations" Voluntas 2011 Vol 22 4 587 612 http://dx.doi.org/10.1007/s11266-011-9197-1
293. Rodriguez M.D.G. , Perez M.D.C. , Godoy M.L. "Determining factors in online transparency of ngos: A Spanish case study" Voluntas 2012 Vol 23 3 661 683 http://dx.doi.org/10.1007/s11266-011-9229-x
294. Shachar I.Y. "The white management of “volunteering”: Ethnographic evidence from an Israeli ngo " Voluntas 2014 Vol 25 6 1417 1440 http://dx.doi.org/10.1007/s11266-013-9398-x
295. Shaw S. , Zink R. , Lynch P. "Keeping people “in the tent”: Governance in the New Zealand outdoor activity sector" Voluntas 2014 Vol 25 6 1539 1558 http://dx.doi.org/10.1007/s11266-013-9425-y
296. Steen-Johnsen K. , Eynaud P. , Wijkstrom F. "On civil society governance: An emergent research field" Voluntas 2011 Vol 22 4 555 565 http://dx.doi.org/10.1007/s11266-011-9211-7
297. Struyk R.J. , Haddaway S.R. "Mentoring policy research organizations: Project evaluation results" Voluntas 2012 Vol 23 3 636 660 http://dx.doi.org/10.1007/s11266-011-9222-4
298. Suleiman L. "The ngos and the grand illusions of development and democracy" Voluntas Vol 24 1 241 261 http://dx.doi.org/10.1007/s11266-012-9337-2
299. Szper R. , Prakash A. "Charity watchdogs and the limits of information-based regulation" Voluntas 2011 Vol 22 1 112 141 http://dx.doi.org/10.1007/s11266-010-9156-2
300. Vantilborgh T. , Bidee J. , Pepermans R. , Willems J. , Huybrechts G. , Jegers M. "A new deal for npo governance and management: Implications for volunteers using psychological contract theory" Voluntas 2011 Vol 22 4 639 657 http://dx.doi.org/10.1007/s11266-011-9200-x
301. Wagner A. "Good governance: A radical and normative approach to nonprofit management" Voluntas 2014 Vol 25 3 797 817 http://dx.doi.org/10.1007/s11266-013-9370-9
302. Willems J. , Boenigk S. , Jegers M. "Seven trade-offs in measuring nonprofit performance and effectiveness" Voluntas 2014 Vol 25 6 1648 1670 http://dx.doi.org/10.1007/s11266-014-9446-1
303. Williams A.P. , Taylor J.A. "Resolving accountability in nonprofit organizations" Voluntas 2013 Vol 24 3 559 580 http://dx.doi.org/10.1007/s11266-012-9266-0
304. Young D.R. "The prospective role of economic stakeholders in the governance of nonprofit organizations" Voluntas 2011 Vol 22 4 566 586 http://dx.doi.org/10.1007/s11266-011-9217-1
http://brill.metastore.ingenta.com/content/journals/10.1163/24054933-12340011
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/content/journals/10.1163/24054933-12340011
2016-04-06
2017-12-14

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