No abstract

Based on the social constructionism perspective and a multiple constituency model, this study investigates stakeholder judgments of nonprofit charitable organization effectiveness. ThestudyalsousesaDelphiprocesstoidentifycriteriathatsomepractitionerw-experts regard as objective indicators of effectiveness. Data on various stakeholder judgments of organizational effectiveness and on the objective indicators were collected for a sample of 64 organizations, allowing for examination of the extent to which stakeholder judgments are consistent and for examination of the extent to which judgments are related to objective indicators. Among the major results of the study are that practitioner-experts define objective effectiveness as employing correct procedures; stakeholders frequently vary substantially in their judgments of the effectiveness of the same organization; stakeholder judgments of effectiveness seldom are related to objective (correct procedures) effectiveness; and differenttypesofstakeholdersusesomeofthesame-mostnotably,boardeffectiveness-as well as different bases for making effectiveness judgments. Conclusions and implications are discussed.

This article draws from the general literature on organizational effectiveness and the specialized literature on nonprofit organizational effectiveness to advance six theses about the effectiveness of public benefit charitable nonprofit organizations (NPOs). (a) Non-profit organizational effectiveness is always a matter of comparison. (b) Nonprofit organizational effectiveness is multidimensional and will never be reducible to a single measure. (c) Boards of directors make a difference in the effectiveness of NPOs, but how they do this is not clear. (d) More effective NPOs are more likely to use correct management practices. (e) Nonprofit organizational effectiveness is a social construction. (f) Program outcome indicators as measures of NPO effectiveness are limited and can be dangerous. The article concludes by considering three possible futures for NPO effectiveness research.

How do key stakeholders of nonprofit organizations (NPOs) judge the effectiveness of their organization? Are the judgments of stakeholders similar, and how are board effectiveness and the use of practitioner-identified correct management procedures related to judgments of effectiveness? This study focuses on a subset of especially effective and less effective NPOs from a larger sample and finds that the especially effective have more effective boards (as judged by various stakeholder groups), have boards with higher social prestige, use more practitioner-identified correct management procedures, and use more change management strategies. Practical implications discussed include adopting more correct management procedures and change management strategies.T he question of how to understand and assess the effectiveness of charitable nonprofit organizations (NPOs) continues to challenge practitioners and scholars alike. Is an NPO with rapidly growing revenues and an increasing surplus more effective than one We appreciate the support of the board and officers of the fund, and we acknowledge the generous cooperation of the chief executives, board presidents, board members, staff, and funders who participated. We also thank Dennis Young and three anonymous reviewers for the helpful comments on an earlier draft.

This study reviews evidence in support of the hypothesis that nonprofit organizations’effectiveness is related to the effectiveness of their boards of directors. It also asks whether various recommended board practices and processes affect board effectiveness. The study focuses on a subset of especially effective and less effective nonprofit organizations from a larger sample. The results show that the especially effective organizations (as judged by multiple stakeholders) have more effective boards (as judged by different multiple stakeholders) and that the more effective boards use significantly more of a set of recommended board practices. The results also show that nonprofit organizations using more of the prescribed board practices are also more likely to use other correct procedures. The results support the practical implication of urging the dissemination and adoption of the recommended practices.