Date of Conferral

2022

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

Tim Truitt

Abstract

Donors’ skewed perceptions and unrealistic expectations about nonprofit organization (NPO) overhead can negatively impact the administrative infrastructure and limit productive capacity. NPO leaders who succumb to the pressure to spend less overhead are at high risk of eroding the administrative infrastructure and limiting productive capacity. Grounded in Duncan’s theory of impact philanthropy, the purpose of the qualitative multiple case study was to explore effective strategies NPO leaders use to navigate the nonprofit starvation cycle. Data were collected from five nonprofit leaders using semistructured interviews, organizational documents consisting of annual reports, at least 3 years of Form 990, websites, member checking. Data were analyzed using Yin’s five-step process. Four themes emerged: (a) diversify revenue, (b) identify and pursue unrestricted funds, (c) minimize overhead, and (d) unconventional budgeting and reporting. A key recommendation is for NPO leaders to be honest and transparent about operations costs in conversations with those in the grantmaking space. The implications for positive social change include the potential for improved NPO sector sustainability, resulting in thriving NPOs that can better aid beneficiaries and their communities through service and, therefore, fulfill their mission.

Included in

Business Commons

Share

 
COinS