Public & Nonprofit Orgs

Performance Measurement and Evaluation Systems: Institutionalizing Accountability for Governmental Results in Latin America

Performance Measurement and Evaluation Systems: Institutionalizing Accountability for Governmental Results in Latin America
In S. Kushner & E. Rotondo (Eds.), Evaluation voices from Latin America. New Directions for Evaluation, 134, 77–91.

Cunill-Grau, N., & Ospina, S. M.

Results-based performance measurement and evaluation (PME) systems are part of a global current in public administration. In the Latin American context, this trend is also a reflection of the broader processes of reform of the latter half of the 20th century, including the modernization of public administration, as well as broad processes of decentralization and democratization, both of which are dimensions of development in Latin America, regardless of the political and ideological orientation of specific governments. This chapter documents the development of such evaluative approaches to organizational quality and raises some issues for further discussion.

Debt, Donors, and the Decision to Give

Debt, Donors, and the Decision to Give
Journal of Public Budgeting, Accounting, and Financial Management, volume 24, no. 2: 221-254

Calabrese, Thad, Grizzle, C.

There has been a significant amount of work done on the private funding of nonprofits. Yet, despite the enormous size of the nonprofit sector as a whole, the importance of private donations to the sector, and the significance of the sector to public finances, there has been very little empirical research done on the capital structure of nonprofit organizations, and none has examined the potential effects of borrowing on individual contributions. Debt might affect donations because programmatic expansion might “crowd-in” additional donors, the use of debt might “crowd-out” current donors since expansion is undertaken at the behest of the organization (and not due to donor demand for increased output), donors might have a preference for funding current output rather than past output, or because of concerns that the nonprofit will be unable to maintain future programmatic output. These potential effects of debt on giving by individuals have not been the focus of research to date. The primary data for this paper come from the “The National Center on Charitable Statistics (NCCS)-GuideStar National Nonprofit Research Database” that covers fiscal years 1998 through 2003. The digitized data cover all public charities required to file the Form 990. The final sample contains 460,577 observations for 105,273 nonprofit entities. The results for the full sample support a “crowding-out” effect. The analysis is repeated on a subsample of nonprofits more dependent upon donations, following Tinkelman and Mankaney (2007). The restricted sample contains 121,507 observations for 36,595 nonprofit organizations. The results for the subsample are more ambiguous: secured debt has little or no effect, while unsecured debt has a positive effect. The empirical analysis is then expanded to test whether nonprofits with higher than average debt levels have different results than nonprofits with below average debt levels. The results suggest that donors do remove future donations when a nonprofit is more highly leveraged compared to similar organizations.
Nonprofits may fear that the use of debt signals mismanagement or bad governance, worrying that donors will punish the organization by removing future donations. The results presented here suggest a more complicated relationship between nonprofit leverage and donations from individuals than this simple calculus. On the one hand, increases in secured debt ratios (from mortgages and bonds) seems to reduce future contributions, possibly because donors are wary of government or lender intervention in the nonprofit’s management, or possibly because of the lack of flexibility inherent in repaying such rigid debt. On the other hand, unsecured debt, while more expensive, seems to crowd-in donations, even at increasingly higher levels when compared to similar organizations. There are at least two important conclusions from this analysis. First, during times of fiscal stress, nonprofits are often tempted to use restricted funds in ways inconsistent with donor intent simply to ensure organizational survival. Rather than violate the trust of certain donors, the results here suggest that nonprofits would be better off utilizing unsecured (possibly short-term) borrowing to smooth out cash flow needs. This option, however, assumes that nonprofits have access to some type of borrowing which is not true for many organizations. A second conclusion one might draw, therefore, is that policy considerations should be made to expand access to debt for nonprofits. The results here suggest that certain types of unsecured debt might in fact draw in additional resources, allowing nonprofits to leverage these borrowings for additional resources. By encouraging this type of policy option, nonprofits would not only gain access to increased revenue sources, but might be able to maintain programmatic output during times of fiscal stress.

The Accumulation of Nonprofit Profits: A Dynamic Analysis.

The Accumulation of Nonprofit Profits: A Dynamic Analysis.
Nonprofit and Voluntary Sector Quarterly 41(2): 300-324

Calabrese, Thad.

Notwithstanding its importance as an internal source of financing, no analysis has examined why nonprofits choose to retain unrestricted net assets. As restricted net assets might not be used as desired by the nonprofit manager, unrestricted net assets are a more accurate definition of available internal resources than total net assets. This article tests several theories that might motivate nonprofit accumulation of unrestricted net assets. Furthermore, the empirical strategy employed allows an analysis of unrestricted net asset accumulation over time and overcomes several significant statistical estimation issues. The results suggest that nonprofits target profits and seek their accumulation over time, although targets may be set at very low levels. Furthermore, the results suggest that the low levels of profits accumulated annually are for the purpose of reducing organizational financial vulnerability. The results also suggest that many nonprofits behave as if leverage and unrestricted net assets are substitutes.

Alternative Service Delivery: Does Nonprofit Financing Influence State Tax Burden?

Alternative Service Delivery: Does Nonprofit Financing Influence State Tax Burden?
The American Review of Public Administration March 2013 vol. 43 no. 2 200-220, doi: 10.1177/0275074012439745

Carroll, Deborah A. and Thad Calabrese.

We analyze panel data of U.S. states to determine whether nonprofit contribution and program service revenues are correlated with state tax burden. State tax burden is modeled as a function of (a) state tax policy, (b) nontax policy factors that affect state income, and (c) other exogenous factors that are independent of state tax policy and do not directly induce income; regression results reveal correlations with variables in all three categories. Intergovernmental revenue (IGR) paid to local governments, debt burden, tax exporting, a tax revenue limitation, and nonprofit revenue are most consistently correlated with state tax burden. Financial support for nonprofits in the form of contributions helps to reduce state tax burden and does so at a meaningful level. This finding implies nonprofits provide goods and services that are supplementary to government provision. However, the supplementary nature of nonprofit service provision is not universal. Further analysis of contribution and program service revenues for nonprofits in particular service categories finds either no correlation with state tax burden, a reduction in state tax burden, or an increase in tax burden imposed on state residents over time. By controlling for factors influencing demand for service provision and state tax policy changes, the regression results also provide evidence that government acts as a free rider.

A Canary in the Mortgage Market? Why the recent FHA and GSE loan limit reductions deserve attention

A Canary in the Mortgage Market? Why the recent FHA and GSE loan limit reductions deserve attention
Furman Center White Paper

Madar, J. & Willis, M.A.

On October 1, 2011, the maximum loan size eligible for Federal Housing Administration (FHA) insurance or a guarantee from Fannie Mae or Freddie Mac (known as "Government-Sponsored Enterprises" or "GSEs") dropped in dozens of metropolitan areas around the country. When this change took effect, a segment of the mortgage market in each of these areas instantly lost some or all federal backing. If enough borrowers seeking loans in this segment are unable to find financing, the result will be further downward pressure on the corresponding segment of the housing market. In this report, we use recent mortgage origination data to explore some of the possible implications of this policy change for the housing market and the U.S. mortgage finance system.

Evaluation of Community-Academic Partnership Functioning: Center for the Elimination of Hepatitis B Health Disparities

Evaluation of Community-Academic Partnership Functioning: Center for the Elimination of Hepatitis B Health Disparities
Progress in Community Health Partnerships: Research, Education, and Action, 5(3), 219. 10.1353/cpr.2011.0043.

Van Devanter, N., S. Kwon, S.C. Sim, K. Chun, and C. Trinh-Shevrin

To conduct a process evaluation using surveys and interviews of the B Free CEED partnership coalition, a community–academic partnership created to address hepatitis health disparities in Asian American and Pacific Islander communities

Microfinance and Social Investment

Microfinance and Social Investment
Annual Review of Financial Economics, vol. 3, ed. Robert Merton and Andrew Lo. 2011: 407-434.

Conning, J. & Morduch, J.

This paper puts a corporate finance lens on microfinance.  Microfinance aims to democratize global financial markets through new contracts, organizations, and technology. We explain the roles that government agencies and socially-minded investors play in supporting the entry and expansion of private intermediaries in the sector, and we disentangle debates about competing social and commercial firm goals. We frame the analysis with theory that explains why microfinance institutions serving lower-income communities charge high interest rates, face high costs, monitor customers relatively intensively, and have limited ability to lever assets. The analysis blurs traditional dividing lines between non-profits and for-profits and places focus on the relationship between target market, ownership rights and access to external capital.

A new methodology for assessing social work practice: The adaptation of the Objective Structured Clinical Evaluation (SW-OSCE)

A new methodology for assessing social work practice: The adaptation of the Objective Structured Clinical Evaluation (SW-OSCE)
Social Work Education: The International Journal, 30(2), 170 – 185.

Lu, Y. E., Ain, E., Chamorro, C., Chang, C. Y., Feng, J. Y. Fong, R., Garcia, B., Hawkins, R. L., Yu, M.

The Objective Structured Clinical Evaluation (OSCE) methodology was originally developed to assess medical students. OSCE is a carefully scripted, standardized, simulated interview, in which students’ interactional skills are observed and assessed. Here it is examined for its potential use in assessing social work practice skills. The development of the Social Work OSCE (SW-OSCE) and the Clinical Competence-based Behavioural Checklist (CCBC) are described. Findings from a pilot study assessing MSW students’ clinical skills with explicit observable criteria of the CCBC are presented.

A quantitative and qualitative mixed-methods data analysis was applied. The CCBC had high internal reliability, for both the overall sample and for the different case scenarios, with Cronbach's alpha values ranging from 0.888 to 0.965. The validity of the instrument was also examined: qualitative content analysis of the taped interviews indicated that clinical skills and cultural empathy are not synonymous. The racial/ethnic match between the student and the ‘client’ did not predict better rapport or more cultural empathy. Examination grades are not necessarily consistent with actual performance in either clinical competence or cultural empathy or vice versa.

Nevertheless, the results provide some support for the use of the SW-OSCE as a tool for assessing performance in social work practice. They also indicate its potential for evaluating the outcomes of educational programmes.

Climate Change Mitigation and Adaptation in North American Cities

Climate Change Mitigation and Adaptation in North American Cities
Available on line January 7, 2011, Current Opinion in Environmental Sustainability, Vol. 3, 2011, pp. 181-187 doi:10.1016/j.cosust.2010.12.004

R. Zimmerman and C. Faris.

Climate change mitigation and adaptation action plans are developing at a rapid pace, being driven by both local initiatives and emerging alliances and support organizations that cut across multiple jurisdictions. These plans include a broad range of approaches, many of which are evolving into best or leading practices and which will be increasingly used as a model for the plans of other locales. This paper draws attention to several best practices in both mitigation and adaptation for North American cities, and also highlights many of the supporting alliances and groups that disseminate key practices and drive potential synergies. Additionally, it is noted that despite the increasing rate of plan development, a continuing need exists for increased attention to adaptation at the local level.


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