19. Nonprofit Arts Organizations: Sustainability and Rationales for Support

2020 ◽  
pp. 468-486
2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Young-Joo Lee

Abstract Although nonprofit organizations are expected to contribute to public interests, their tax exemption does not necessarily entail serving the broader public. What, then, makes nonprofit organizations orient their work externally, serving the broader public, instead of internally, pursuing private goals? This paper examines this question by studying the link between nonprofits’ board governance, with a specific focus on boards’ racial diversity, and their contribution to public interests. The analysis of the 2015 US Local Arts Agency Census reveals that boards’ racial diversity is closely related with nonprofit arts organizations’ participation in serving the broader public through civic engagement and community development activities. The findings offer insights on how nonprofit boards, which are neither publicly elected nor publicly accountable, can be trusted to attend to broader issues of the public interest.


2018 ◽  
Vol 47 (3) ◽  
pp. 645-656 ◽  
Author(s):  
Joanna Woronkowicz

When charities launch capital campaigns, they hope to attract large amounts of resources in a relatively short period of time; however, other charities in the area are likely to see such campaigns as disruptive to the natural distribution of resources to area nonprofits by disproportionately directing area donations to a single organization. This study seeks to understand the effects capital campaigns have on both the fundraising performance of other nonprofits and the makeup of a local nonprofit ecology. The analysis uses data from a randomly sampled set of nonprofit arts organizations that had capital campaigns for facilities projects between 1994 and 2007 and Internal Revenue Service Form 990 data on 501 (c) (3) nonprofit organizations in each county. The results illustrate that a capital campaign positively affects the fundraising performance of other charities in a local nonprofit ecology, but that campaigns decrease the size of a local nonprofit ecology.


2016 ◽  
Vol 46 (1) ◽  
pp. 175-198 ◽  
Author(s):  
Mirae Kim

Nonprofits face increasing pressure to compete in the market, while they must maintain their civic commitment. Focusing on the arts and cultural sector, this study conducts the first large-scale, comprehensive empirical measurement of nonprofits’ engagement in various roles. The article uses a previously validated 18-item role index to categorize nonprofits as primarily engaged in either civic or market functions, so that a subsequent regression analysis can identify the common characteristics of civically active nonprofit arts service organizations. The data come from (a) qualitative interviews with leaders of arts nonprofits, (b) a random national sample of more than 900 arts nonprofits, and (c) Internal Revenue Service (IRS) tax returns of the sample nonprofits. The findings suggest that civically active arts nonprofits have diverse networks, recognize civic engagement as the industry norm, and are consciously aware of their nonprofit status. The results suggest how nonprofits can balance their equally important market- and civic-oriented functions.


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