In this study we explore the returns to political connections in non-corporate contexts, within China, a country transitioning from a planned to market economy. Using China as an empirical case study, we investigate two separate, but related hypotheses on the financial benefits of political connections for a sample of 1,435 Chinese foundations, from 2005-2011. This extends Western donation determinants literature to a Chinese context and political guanxi (social relationships where individuals or organizations exchange future favors or gifts) research to non-corporate contexts. Our empirical results show that there is no relationship between the presence of State employees on an NGO's staff (a measure of political guanxi) and private donations. However, there is a small, but positive relationship between the amount of government funding an NGO receives (a signal of legitimacy) and private donations. These findings suggest that in postcommunist countries such as China, donors may not be seeking future favors from their contributions and instead are interested in developing a robust civil society with legitimate, high quality NGOs. Additionally, the similarity between Western donation determinants research findings and Chinese donation determinants, in this paper, requires future comparative studies of both how and why donors make decisions.
The nonprofit sector has become increasingly reliant on paid professional staff and now faces competition from the private and public sectors, which often pay higher to attract and retain workers. Although Millennials are attracted to nonprofit work, there are concerns that they will not remain committed to the nonprofit workforce due to low pay. We analyzed data from the 2011 Young Nonprofit Professionals Network Survey to examine the relationship between pay, perceptions of equitable pay, and sector-switching intentions among Millennial nonprofit workers. Although two thirds of the respondents indicate sector-switching intentions, we found no evidence that Millennial nonprofit workers, who are purported to value extrinsic and materialistic rewards, expressed sector-switching intentions on account of pay. However, pay influences the sector-switching intentions of Millennial nonprofit managers and those with advanced education. Our results suggest that the nonprofit sector may be facing challenges in attracting and retaining Millennial managers because of low pay.
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