Nonprofit Benchmarking With Data Envelopment Analysis

Coupet, Jason; Berrett, Jessica; Broussard, Paul; Johnson, Bradley S.

doi:10.1177/0899764020977670

Cited by 7 publications

(4 citation statements)

References 42 publications

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“…Further, the ratio has its limitations in terms of the charitable care really delivered. As mentioned by Coupet, Berrett, Broussard, and Johnson (2021), "financial ratios somewhat capture spending patterns, but they do not capture what nonprofits do with resources, leaving out outputs and outcomes entirely" (p. 648).…”

Section: Discussionmentioning

confidence: 99%

Earnings Management in the Charitable Sector: A Canadian Study

Cyr

Landry

Fortin

2023

CJNSER

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This article examines whether charitable organizations use discretionary accruals to manage their surplus or deficit. Linear regression was used to analyze the financial data of a broad sample of Canadian charitable organizations. Results showed that discretionary accruals were used to manage these income figures. This approach is compounded by the magnitude of grants, public benefit, and leverage. The results hold whether the charity anticipates a surplus or a deficit, but not if it displays a high level of public benefit. In that case, charities with an anticipated surplus increase their use of discretionary accruals to decrease earnings, whereas charities that anticipate a deficit are not inclined to manage their deficit toward zero. This study complements prior literature on nonprofits and shows that even though tax laws differ among countries, charity managers in various contexts are motivated to manage earnings and are influenced by various factors in doing so.

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Section: Discussionmentioning

confidence: 99%

Earnings Management in the Charitable Sector: A Canadian Study

Cyr

Landry

Fortin

2023

CJNSER

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“…However, we take careful consideration with imputing the missing data with zero (please see footnote 2 for details). Finally, according to Coupet et al (2021), DEA has limitations. First, the selection of appropriate inputs and outputs is critical in DEA.…”

Section: Discussionmentioning

confidence: 99%

Does Revenue Concentration Really Bring Organizational Efficiency? Evidence From Habitat for Humanity

Berrett,

Hung

2023

Nonprofit and Voluntary Sector Quarterly

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Past empirical studies demonstrate a positive connection between revenue concentration and organizational efficiency. This supports the idea that concentrating revenue helps minimize transaction costs of nonprofit organizations, resulting in greater efficiency. However, this finding contradicts the belief that revenue concentration increases the risk of revenue volatility, leading to service delivery disruptions and reduced efficiency in nonprofits. Moreover, these studies have used an efficiency measure that might not be suitable. To address this, our study examines the relationship between revenue concentration and organizational efficiency using a more appropriate measure. Analyzing data from Habitat for Humanity, we discover a U-shaped relationship: nonprofits are most efficient when fully diverse or fully concentrated in revenue. These findings contribute to the ongoing debate on nonprofit revenue diversification, with significant implications for nonprofits. They also highlight the importance of using more appropriate efficiency measures in future scholarly research.

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“…Focusing on practical implications, a management-for-stakeholders approach requires managers to obtain indicators that measure the value created by the MFI for each of its stakeholders. However, when we reviewed the literature on microfinance assessment, we found no well-established indicators that measure the return of MFIs to stakeholders (Coupet et al, 2020; MacIndoe & Barman, 2013). Hudon and Périlleux (2014) studied the surplus that MFIs distribute to stakeholders.…”

Section: Discussionmentioning

confidence: 99%

The Relationship Between Microfinance Mission Drift and Financial Returns to Stakeholders

Serrano‐Cinca

Fuertes‐Callén

Cuéllar-Fernández

2022

Nonprofit and Voluntary Sector Quarterly

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Some microfinance institutions (MFIs) can drift from their social mission, generating well-studied effects for their borrowers. We focus on the lesser-known effect of mission drift on the financial return to other stakeholders (employees, government, micro-savers, and banking creditors). Using a sample of 534 MFIs, we calculated the economic value distributed by the MFI to these stakeholders by considering salaries, taxes, and interest paid. We found a negative relationship between average loan size and return to employees (RTE), government, and banking creditors, and a positive relationship between women borrowers and RTE and government. This is explained by the fact that mission-focused MFIs are usually small, labor-intensive institutions with a stable business model. We found a positive relationship between average loan size and return to micro-savers, and a negative relationship between women borrowers and return to micro-savers. The reason is that many mission-focused MFIs do not offer micro-savings, undermining financial inclusion.

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Nonprofit Benchmarking With Data Envelopment Analysis

Cited by 7 publications

References 42 publications

Earnings Management in the Charitable Sector: A Canadian Study

Earnings Management in the Charitable Sector: A Canadian Study

Does Revenue Concentration Really Bring Organizational Efficiency? Evidence From Habitat for Humanity

The Relationship Between Microfinance Mission Drift and Financial Returns to Stakeholders

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