The Uniqueness of Financial Crisis Management for Young and Small Not-for-Profits
*Names in bold indicate Presenter
The lack of a dedicated branch of nonprofit scholarship to the subset of small and new organizations is surprising for two reasons. First, the for-profit sector has long acknowledged the uniqueness of financial management for small businesses (Ang 1991). Such scholarship is also separate from entrepreneurship studies, which often focuses on the entrepreneur rather than the enterprise, especially in social organizations. Second, almost all nonprofit organizations spend time as both small and new. Though the liability of newness could be dismissed as transitory, many nonprofits remain small, often by choice, and will continue to face unique financial management obstacles (Frumkin 2002).
Drawing on a small, but growing number of studies addressing the unique needs of small not-for-profits, this study presents evidence-based practices for small and young not-for-profits on navigating through the hazards of financial stress. Using financial information compiled by the National Center for Charitable Statistics and the models developed in Searing (2012) and Searing (2015), we differentiate between practices appropriate for the sector at large and those beneficial to younger and smaller nonprofits. Case studies are then utilized to illustrate the recommendations formed from the national not-for-profit dataset analysis.
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Frumkin, P. (2002). Service Contracting with Non-profit and For-profit Providers: On Preserving a Mixed Organizational Ecology, Institute for Government Innovation, John F. Kennedy School of Government, Harvard University.
Searing, E. A. M. (2012). Determinants of the Recovery of Distressed Nonprofits. ARNOVA Annual Conference. Indianapolis, Indiana.
Searing, E. A. M. (2015). Predicting Financial Recovery in Vulnerable Small and New Not-for-Profit Organizations. Doctorate, Georgia State University.
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