True Grit: Exploring Nonprofit Sector Resilience Following Economic Recessions

Author:

Chen Xintong1,Kuenzi Kerry2,Evans Lindsey3,Stewart Amanda4

Affiliation:

1. San Jose State University , College of Social Science , Political Science Department , San Jose , CA , USA

2. University of Wisconsin-Green Bay , Public and Environmental Affairs , Green Bay , USA

3. Virginia Commonwealth University, L Douglas Wilder School of Government and Public Affairs , Richmond , VA , USA

4. North Carolina State University , The School of Public and International Affairs , The Department of Public Administration , Raleigh , USA

Abstract

Abstract The nonprofit sector has been portrayed as resilient, describing a sector that persists despite challenges. We investigate nonprofit resiliency by examining how organizational characteristics, strategies, and community factors equipped organizations to recover following economic recessions. Utilizing a fixed effects panel regression model, our study covers a period of 29 years (1989–2018), encompassing three economic crises in the United States. The primary focus is examining the sector’s financial health and the resilience of the constituent organizations. Our findings describe a sector buoyed by the resilience of larger and older organizations, earned revenue, and contribution revenue, as well as the role of community factors in influencing the sector’s resilience. This study examines a wider timeframe and employs a more expansive sampling approach compared to previous studies on nonprofit resilience. In doing so, it contributes valuable insights to our understanding of the resilient sector.

Publisher

Walter de Gruyter GmbH

Reference69 articles.

1. Bailey, M. 2015. Real Stats: Using Econometrics for Political Science and Public Policy. Oxford: Oxford University Press.

2. Blackwood, A. S., K. L. Roeger, and S. L. Pettijohn. 2012. The Nonprofit Sector in Brief: Public Charities, Giving, and Volunteering, 2012. Washington: Urban Institute.

3. Bucholtz, B. K. 1998. “Reflections on the Role of Nonprofit Associations in a Representative Democracy.” Cornell Journal of Law and Public Policy 7 (2): 555–603. http://scholarship.law.cornell.edu/cjlpp/vol7/iss2/8.

4. Du Bois, C., R. Caers, M. Jegers, C. Schepers, S. De Gieter, and R. Pepermans. 2004. “Agency Problems and Unrelated Business Income of Nonprofit Organizations: An Empirical Analysis.” Applied Economics 36 (20): 2317–26. https://doi.org/10.1080/0003684042000281552.

5. Calabrese, T. D. 2011. “Testing Competing Capital Structure Theories of Nonprofit Organizations.” Public Budgeting & Finance 31 (3): 119–43. https://doi.org/10.1111/j.1540-5850.2011.00989.x.

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