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ASU Lodestar Center Blog

Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.


Monday, August 28, 2017

As organizations serving public interests, nonprofits answer to the voices of multiple stakeholders. The complex accountability relationships facing nonprofit organizations include responsibilities to donors, clients, community partners, staff members and volunteers. Under pressure from multiple stakeholders, nonprofits tend to prioritize accountability to donors, foundations and governments over accountability to clients and the populations served by the organization (Ebrahim, 2003). However, by seeking out the voices of the people they serve, nonprofit organizations can embrace their responsibilities and improve their organizations.

By improving downward accountability, defined as accountability to the populations nonprofits serve, organizations can meet their obligations to clients and others affected by the services and programs of a nonprofit (Ebrahim, 2003). Nonprofit organizations have a responsibility to embrace client perspectives, as serving clients often represents a primary purpose for many nonprofits (Twersky, Buchanan, & Threlfall, 2013). Improving downward accountability benefits nonprofits by empowering the individuals they serve, improving the legitimacy of the organization, and enhancing organizational effectiveness (Mercelis, Wellens & Jegers, 2016; Twersky et al., 2013). Even as different stakeholders demand their share of responsiveness from the organization, improving organizational effectiveness should appeal to most…

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Wednesday, August 16, 2017

On Feb. 21, 2017, the transportation company Uber debuted a new self-driving car program in Tempe, Arizona. As of this writing, customers can now request a ride in one of these self-driving cars.  Uber is not the only company debuting this newest innovation- Waymo, a Google subsidiary, and General Motors are both testing their own self-driving cars in the Phoenix area. Self-driving cars are not science fiction; they are a reality on Arizona roads today and will only continue to become more prevalent as technology reaches its full potential.

Self-driving cars are perhaps the most visible element of the “Fourth Industrial Revolution,” a term used to by some scholars to refer to the rapidly increasing use of automation, robotics, and artificial intelligence (AI) over the next two decades (Schwab, 2016). The Fourth Industrial Revolution will disrupt the US and world economy by simultaneously creating new economic growth and large-scale unemployment. Automation has the potential to reduce costs, increase productivity, and increase demand for some occupations, such as computer programmers. Yet, automation will replace millions of American jobs, leaving workers such as taxi or truck drivers out of work. “Rapid and accelerating digitization is likely to bring economic rather than environmental disruption, stemming from the fact that as computers get more powerful, companies have less need for some kinds of workers. Technological progress is going to leave…

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Monday, July 31, 2017

Nonprofit organizations are among the strongest bridges that connect global problems with solutions. The world needs effective organizations to carry out programs that are beneficial to society.  

While devotion to a cause will lift the wings of a solution, an organization must guide and oversee its growth if it is to ever take flight. In other words, the effectiveness of the charitable work ultimately falls to how the nonprofit is governed.

The question then turns to this: how can nonprofits structure their governance based on their organizational and lifecycle needs? Research has shown that organizational competence, or lack thereof, is linked to board of director performance (Brown & Iverson, 2004, p. 378) (Brown, 2005, p. 330) (Bradshaw, 2009, p. 62). Challenging as it may seem, the payoff that comes from structuring governance according to organizational and lifecycle needs is well worth the time and effort.

The strength of the nonprofit sector lies within the ability to channel passion into effective action and the ability to use governance as a tool to ensure long-lasting change. 

In their study of organizational strategy, Miles and Snow (1978) identify several different types of organizations (defenders; prospectors; analyzers; and reactors), and each one has a unique strategy for achieving its organizational mission. The structure of governance will depend on the way in which each nonprofit meets…

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Thursday, July 20, 2017

There is a glaring lack of diversity within the nonprofit sector and philanthropic community that harms not only minority communities but nonprofit institutions themselves. Research shows people from diverse groups create novel solutions, introduce different thinking patterns and increase performance, creativity and innovation within an organization (Chandler, 2016).  

Defining how an organization thinks about diversity is a critical starting point because it can be used to describe differences of race, ethnicity, gender, sexual orientation, economic standing, and physical or developmental disability within a group of people. Racial diversity within the nonprofit sector is becoming increasingly important as evidenced by the prediction that by the year 2042, minorities will overtake the majority population in the United States (D5, 2015). This reality is contrasted against the statistics of the philanthropic community and the nonprofit sector in general which remains mostly white: as 79 percent of the foundation workforce and 91percent of the CEOs and Presidents identify as white (see figure below) (D5, 2015). The traditional power dynamics created between philanthropy, nonprofit organizations and the community beneficiaries of the nonprofit work is imbalanced. Such that, philanthropy holds the greatest reward power and nonprofits assert more control over the communities they serve (Spilka, Figueredo & Kioukis, 2014). The question  then is how to…

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Wednesday, July 12, 2017

In order to have long term fiscal sustainability, nonprofits must be considering future generations as potential donors and supporters.  Baby Boomers and Generation X have fiscally supported nonprofits for decades, now Millennials are the next generation that must be courted.  They have a different approach and outlook on life than previous generations, as such traditional marketing and fundraising techniques will be less effective.  It is crucial for nonprofit organizations to understand what motivates this generation and to add millennial strategy to their marketing plans.  Nonprofits must stay on top of social media trends and create engaging experiences for millennials in order to capture their loyalty.  According to a PEW Research Poll, millennials now make up the majority of the US labor force.  (PEW, 2015) As time goes on, this generation will accumulate more wealth and become increasingly more critical for nonprofits to pursue as a revenue source.  In a 2012 report, the National Chamber Foundation cited that Millennials have approximately “$200 billion of direct purchasing power and $500 billion of indirect spending.”  The study then goes on to claim that “With Millennials’ peak buying power still decades away, marketers would do well to establish relationships with this consumer force.” (National Chamber Foundation, 2012)

As with all previous generations, Millennials have characteristics that make their generation unique.  …

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