What’s Research Got to Do
with It?
Katherine Mandusic Finley, CAE, CFRE
ISAE Annual Convention
July 16, 2003
Types of Research
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Applied or internal – done by
association or done for a specific
association
Academic – done by professional
researcher examining issues related to
all associations or nonprofits
Benefits of Applied Research
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Provides an association with information
about its members’ needs and wants
Helps an association design effective
programs and services
Helps an association provide
assessment of marketplace trends
Provides an assessment of image
Limited use beyond one association
Benefits of Academic Research
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Many academic centers, universities,
and students studying this area
Not all of this research is useful, but…
Some research can give credence to
various theories of leadership and
governance
Can provide insight into various
problems so we can better manage our
association
Benefits of Academic Research
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Contributes to better understanding of
a particular topic
Can help an association institute a
program or form of governance
Gives the entire field credence
What is Being Studied?
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In one word – EVERYTHING!
460 papers at one conference alone
Over 245 programs in nonprofit
management (either degree or
certificate)
Numerous “think tanks” devoted
exclusively to this
Doctoral program in association mgt.
Sampling of Research
Effectiveness of Board Training or
Development Programs
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Study by Thomas P. Holland and Douglas K.
Jackson of University of Ga.
Study of 10 boards that had three-year
developmental programs
Identified these board competencies:
contextual, interpersonal, analytical and
strategic
Boards that employed developmental training
improved effectiveness significantly
Effectiveness of Board Training or
Development Programs, cont.
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Competencies that improved most were
ones specifically targeted for attention
Boards will not change if change is
imposed; must want to develop
Board development has to be
considered a long-term investment
Why Do Nonprofits Fail?
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Study by Mark Hager, Urban Institute:
Wolfgang Bielefeld, IU; and Joe Galaskiewicz,
University of Arizona
Studied Minneapolis area from 1984-94 to see
why nonprofits failed
Found that size and age related to
organizational survival. The older, larger and
more established organizations were more
likely to survive
Why Do Nonprofits Fail, cont.

Reasons for closure were: organization
too small; too young; instability
(personnel loss or goal changes); lack
of managerial acumen (financial
difficulties, personnel capabilities,
conflict among staff, power struggles on
board, unclear mission); and success
(mission completed)
Why Do Nonprofits Fail, cont.
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Under managerial acumen, financial
difficulties and personnel loss were
major reasons for closing
Some closed because executive director
died or left; founder left or died
Effectiveness of the Carver
Governance Model
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Study by Patricia Dautel Nobbie,
University of Georgia
Carver model – board drives
organization through policies related to
ends, executive limitations, and
governance policies
CEO allowed to advance ends without
violating means
Effectiveness of the Carver
Governance Model, cont.
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Data collected from 234 board members of
32 organizations using model; control groups
of those not using any model and those using
another model
Those studied were those that totally
implemented and understood model
Study found that perception by board was
that they did operate more effectively
Effectiveness of the Carver
Governance Model
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However, there was no evidence to
support that performance is actually
higher under this model as compared to
other models
The effectiveness really depends on
training of board members and length
of using the model
How Well Do Boards Approach
Executive Transitions?
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1998 a study conducted by
CompassPointe in San Francisco Bay
area.
Looked at 28 organizations
Executive directors in 501-c-3 stayed
three years; most first-timers
(Leadership Lost study)
How Well Do Boards Approach
Executive Transitions, cont.
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Study found that boards underestimate
risk of bad hires
Also, boards are woefully unprepared
for task
Moreover, board does not use transition
as an opportunity
“Weird Management” Techniques
that Work
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Robert Sutton of Stanford University,
School of Business and Engineering
Research on what techniques spark
innovation within organizations and
companies
Wrote book outlining 11 ½ techniques
that work in companies; found three
work in nonprofit setting
“Weird Management” Techniques
that Work, cont.
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Hire people who make you uncomfortable.
Seek competent people with different beliefs
and skills. This tends to spark innovation
Find happy people and get them to fight.
Conflict over ideas is good, especially in
creative organizations. Study showed that
when fighting over conflicting ideas,
employees provoked to weave ideas together
to come up with best idea
“Weird Management” Techniques
that Work, cont.
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Reward success and failure, punish
inaction. Study found that you cannot
generate good ideas without bad ones.
Reward smart failures not dumb ones.
Is a Merit Pay System Always
Good?
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Study by John R. Deckop, Temple
University and Carol C. Cirka, Urisinus
College
Study of a private northeastern college
that is religiously affiliated
126 responses to questionnaire
Implemented a merit pay system in
mission-based organization
Is a Merit Pay System Always
Good?, cont.
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Study found that implementing a merit pay
system in a mission-based organization can
cause a decline in intrinsic motivation
Plan to implement this must be
communicated
If organization cannot continue merit pay
increases, this poses a danger to organization
Are Nonprofit Organizations
Ready for Downsizing?
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Study by Russ Cargo and Deborah Barfield of
Nonprofit Enterprise Institute at Virginia
Commonwealth University
Study found nonprofits unprepared for
downsizing
Nonprofits need strategy to address structure
(staffing), communications and to assist
affected employees
Nonprofits particularly lack legal knowledge to
make right decisions
Is There a Tie Between Strategy and
Financial Performance?
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Study by William Crittendon of Northeastern
University; study done over three-year time
period of 31 organizations
There is a definite correlation between
success of organizations and degree to which
they engage in strategic planning
There is a definite correlation between
success of organization and those that have
financial orientation
Is There a Tie Between Strategy and
Financial Performance?, cont.
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There is a correlation between success
of organization and degree to which
organization has a marketing
orientation
Unsuccessful organizations are basically
unfocused
Do Organizations Engaged in Formal
Strategic Planning Perform Better than
Others?
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Study by Julie I. Siciliano of Western New
England College in Springfield, MA
Based on 240 questionnaires from YMCAs and
66 telephone interviews
Factors identified with more formal strategic
planning – strategic planning committee of
board takes responsibility, use of consultants
and financial performance
Do Organizations Engaged in Formal
Strategic Planning Perform Better than
Others?, cont.
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Findings: The more formal the strategic
planning process, the higher the
organization’s performance
In particular, activity of setting goals,
objectives, action plans and monitoring linked
to better performance
Formalizing analysis of environmental trends
associated with better social performance
Do Organizations Engaged in Formal
Strategic Planning Perform Better than
Others?, cont.
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Formalizing competitive analysis was
associated with better financial performance
Development of a unique mission statement
was not associated with any performance
measure
Less formal strategic planning done when an
executive committee involved rather than a
strategic planning committee
Do Organizations Engaged in Formal
Strategic Planning Perform Better than
Others?, cont.
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No evidence that use of outside
consultant resulted in more formal
planning process
More financially stable organizations are
more likely to engage in formal process,
rather than those in financial crisis who
need planning the most
Philanthropy - 2002
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American Association of Fund Raising Counsel
(AAFRC) prepares Giving USA each year
Giving is at record $240.9 billion, an increase
of 1 percent. Adjusted for inflation, this
represents a decrease of .5 percent
Giving by individuals increased slightly
Bequests increased to $18.1 billion
Giving by foundations decreased
Giving by corporations increased
Philanthropy – 2002, cont.
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Most giving comes from individuals (76.3%),
foundations (11.2%), and corporations
(5.1%)
Most giving goes to religion (35%), followed
by education (13.1%), foundations (9.1%),
health (7.8%) and human services (7.7%)
Environmental/animal rights, arts & culture
and public-society-benefit get least
New Studies
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Executive transitions in associations (Union Institute
Doctoral Program)
Diversity in associations (Union Institute Doctoral
Program)
Best practices for small associations (Union Institute
Doctoral Program)
Volunteers – the cost of hiring – UPS Foundation and
Urban Institute
Indiana nonprofit database study (all nonprofits,
economic impact – mapping the sector; IU study)
MORE
Journals and Magazines with Latest
Research
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Social Science Innovation
Review (Stanford

University)
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The Nonprofit Quarterly
(Third Sector New
England)
ARNOVA News, E-News
and abstract database
Snapshots, Aspen
Institute
Nonprofit Management &
Leadership
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Center for Association
Leadership – launching a
new journal
Chronicle of Philanthropy
NonProfit Times
Philanthropy (AFP)
Nonprofit World
Board Member
(BoardSource)
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Voluntas
Nonprofit and Voluntary
Sector Quarterly
New Books

William B. Werther, Jr and
Evan M. Berman, Third
Sector Management: The
Art of Managing Nonprofit
Organizations (Georgetown

Univ. Press, 2001)
Robert B. Denhardt, Janet
Vinzant Denhardt, and
Maria P. Aristigueta,
Managing Human Behavior
in Nonprofit Organizations
(Sage Publications, 2002)

Ronald A. Landskroner, The
Nonprofit Manager’s
Resource Directory, 2nd ed.

(John Wiley & Sons, 2002)
Paul C. Light, Pathways to
Nonprofit Excellence
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(Brookings Institution,
2002)
Byron L. Tweeten,
Transformational Boards
(Jossey Bass, 2002)
New Books, cont.
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Lester M. Salamon, The
Resilient Sector: The
State of Nonprofit
America (Brookings
Institution, 2002)
Bruce R. Hopkins, The
Law of Intermediate
Sanctions (John Wiley &
Sons, 2003)
Michael O’Nell, Nonprofit
Nation: A New Look at
the Third America
(Jossey Bass, 2002)
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John Carver, John Carver
on Board Leadership
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
(Jossey-Bass, 2002)
Robert I. Sutton, Weird
Ideas That Work (Free
Press, 2002)
Peter Frumkin, On Being
Nonprofit: A Conceptual
and Policy Primer
(Harvard, 2002)
Research-Related
Organizations
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AFP Research Council
Center on Philanthropy at
IU
Aspen Institute
Urban Institute
Brookings Institution
BoardSource
Institute for Nonprofit
Organization
Management, San
Francisco

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Center for Association
Leadership
ASAE
Independent Sector
Amherst Wilder
Foundation
Mandel Center
Hauser Center for
Nonprofit Organizations,
Harvard
Research-Related
Organizations, Cont.
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Mandel Center for
Nonprofit
Organizations
ARNOVA
International Society
for Third-Sector
Research
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National Alliance for
Nonprofit
Management
National Center on
Nonprofit
Management
Academy of
Management
THANK YOU!
Any questions?