Theme-Based Book Review: The Future of Nonprofits

Abstract

This theme-based book review considers three recent titles related to the challenges faced by nonprofit organizations: the new fourth edition of Understanding Nonprofit Organizations: Governance, Leadership, and Management, edited by Lisa A. Dicke and J. Steven Ott; Resilience and the Management of Nonprofit Organizations: A New Paradigm, by Dennis R. Young and Elizabeth A. M. Searing; and Organizing Logics, Nonprofit Management and Change: Rethinking Power, Persuasion and Authority, by Tracey M. Coule and Carole Bain.

Introduction

Nonprofit organizations are essential providers of services, on a regular basis and in times of disaster; research into community resilience has suggested the importance of involving a range of partners in preparedness efforts, with nonprofit organizations being of primary importance (White, et al., 2015). Society relies heavily on the work and success of nonprofit organizations, yet the sector is beset with a host of difficulties, some contextual and others self-inflicted. The operating environment for nonprofit organizations has arguably never been more complicated than it is now. Much is being asked of nonprofits, to fill considerable gaps in provision of services and provide assistance to vulnerable populations, at a time when support is often in short supply.

COVID-19 demonstrated the vulnerabilities that exist in nonprofits, individually and as a group. Nonprofits were hit hard by the shock of the pandemic, forcing these organizations to think quickly and in innovative ways how not only to respond to the needs of their clients, but to survive as organizations (Maher, Hoang, & Hindery, 2020). Some nonprofits were not able to survive the pandemic, given the extreme circumstances, lack of collaboration, and even hostility to their efforts (Brousselle, et al., 2020). Threats have not lessened, and there remains a need to ensure appropriate levels of collaboration, preparedness, and planning among stakeholder partners (Averyt, et al., 2018). Nonprofit organizations remain key to the success of any such effort, as societal challenges that necessitate the active involvement of nonprofits are expected to worsen rather than improve (ICAEW, 2022). Some in public circles assume the nonprofit sector will simply be there when it is needed, or that management and resource issues that face nonprofits will just take care of themselves. Support is obligatory so that nonprofits can do the work that is necessary (Cayetano, 2022), but even then, the work of nonprofits is challenging public management work, requiring a firm foundational knowledge base.

Perspectives on the resilience of nonprofits are changing as well, calling to mind Albert Hirschman’s observations about organizational decline, the usefulness of slack to help assure continuity, and the dangers that may exist in a “relentlessly taut economy” (1970, p. 9). While it is true that environmental changes and even adversity can provoke innovative responses from organizations, and that this can help to reinvigorate, having some measure of slack over the bare minimum essential for survival could be considered a sort of blessing (1970). Another point he made that is worthwhile for understanding the present state of nonprofits is that while Americans may have a predisposition for ‘exit’ as a response to organizational situations, exit in the public sphere might be considered intensely problematic. In a larger sense, even as society has in some views deteriorated, Hirschman reminded us that “full exit is impossible” (1970, p. 100); even in removing oneself from an organization, one might still be dependent on what the organization does or accomplishes. He used the example of public education, where even if one places a child in private education, one must still live in a society where most education is provided publicly.

This raises the importance of nonprofits. Whether or not someone cares about nonprofits, society is dependent on nonprofits and what they are able to do. Ignoring this is not just irresponsible – it is dangerous. Nonprofits act as a societal bedrock – they do not seek to ‘exit’, but rather to serve and to fill crucial gaps, with loyalty and the increase of social capital (Kuo & Means, 2012) making the difference between resilience and decline. With threats mounting and resources limited, nonprofit exits are phenomena we can collectively afford less and less.

This theme-based book review considers three recent titles related to nonprofit organizations and the challenges they face: the new fourth edition of Understanding Nonprofit Organizations: Governance, Leadership, and Management, edited by Lisa A. Dicke and J. Steven Ott; Resilience and the Management of Nonprofit Organizations: A New Paradigm, by Dennis R. Young and Elizabeth A. M. Searing; and Organizing Logics, Nonprofit Management and Change: Rethinking Power, Persuasion and Authority, by Tracey M. Coule and Carole Bain.

Lisa A. Dicke and J. Steven Ott, editors. (2023). Understanding Nonprofit Organizations: Governance, Leadership, and Management, 4th edition. Routledge. 414 pp. ISBN 9781032471259 (Pbk, $69.95 USD), ISBN 9781032481937 (Hbk, $160 USD), ISBN 9781003387800 (E-book, VitalSource, $69.95 USD)

Understanding Nonprofit Organizations sets itself apart from other textbooks in seeking to provide the best of both worlds – a consideration of the complexity and challenges of the nonprofit sector from a practical, applied standpoint, and a firm root in the academic literature on the topic. The text has long been considered a primary choice for nonprofit management courses – this is with due reason. The range of topics covered is comprehensive; exposure to the academic literature shows students how knowledge in the field has been constructed. The section Introduction by the editors (Dicke & Ott, 2023), forming a backbone of the textbook, call attention to key terms and concepts, and are without exception clear, informed, and involving. The case studies offer an opportunity for in-class application of the material covered in each section. The book, in its newly revised version, remains an excellent choice for those choosing a textbook for nonprofit courses.

Understanding Nonprofit Organizations parses the material of the field in nine major parts – governance, legal frameworks, strategic leadership, innovation and collaboration, fund development, philanthropy and advocacy, budgets and financial control, volunteer management, and finally evaluation and accountability. The foreword sets a tone for the book, which is uncompromising, for lack of a better term, at the need for high-quality and accountable nonprofit management, given the difficulties that exist in the operating environment. It makes sense then that the book starts with governance and legal frameworks. Stephen Block’s chapters on the Board of Directors and later on the Executive Director are exceptional pieces and provide great coverage of this material. I appreciate the inclusion of the chapters on leadership in collaborative networks; excellence in this area can contribute to organizational and community resilience. Michele Cole’s chapter on fundraising, and Jon Pratt’s chapter on reliability of funding, are indispensable contributions, with real-world usefulness. Budget and financial management issues are in my view perhaps the most essential materials in the book, and the text succeeds admirably in preparing readers to handle such material. Hirschman (1970) is mentioned in context of communication (‘voice’) volunteer feedback in nonprofits, in the chapter about volunteer and staff interactions; this chapter is notable in its intelligibility on a critical issue.

The case studies, written by C. Kenneth Meyer and others and included at the end of each section, are valuable. This said, they are not all equally noteworthy; the cases that work best are the ones that set the scene and include enough information about the individuals involved for the reader to (1) care about the case, and (2) see themselves in the role being presented. Some of the cases are very short, so the resulting discussion may be necessarily limited. Case Study 3, for example, on nepotism, let us know the people involved and have a ‘gut reaction’ to what was going on in the case. Many of the better cases in this collection have this potential for response, which speaks highly of the writing and their inclusion in the volume.

One point of concern is likely a matter of perspective. In academic pieces, there are references to methodologies, as some works are drawn from academic journals. The intended audience for the book may have less interest in a research perspective that considers methods, but the alternative view of this is that students ought to understand academic writing and have an awareness of the foundations upon which this knowledge is built. These are interesting times in academia, with different viewpoints on what to include in courses. This book was organized to provide full coverage of what many consider to be essential material. If the presence of chapters on diversity issues causes concern, they need not be assigned. One chapter, on web-based accountability of nonprofit organizations, utilized research material from 2005 – the online world and the public’s interaction with it has progressed quite a lot since then, so one may argue with the inclusion of such a piece, even if it does make several worthwhile points to consider.

The text is a great choice for a course on nonprofit management, as it covers the requisite areas of study, provides clear insight into the essential concepts of the field, and invites discussion and debate through the inclusion of case studies. The text ably bridges the gap between academic work and practice, and in doing so gives students a view into both areas that will hopefully inform a more coherent, capable, and effective nonprofit sector as students that use this book move into their professional careers.

Dennis R. Young and Elizabeth A. M. Searing. (2022). Resilience and the Management of Nonprofit Organizations: A New Paradigm. Edward Elgar. 192 pp. ISBN 9781800889729 (Hbk, $110 USD), ISBN 9781800889736 (E-book, VitalSource, $40 USD)

While reading the Dicke and Ott textbook, I noted the inclusion of a piece by Searing, Wiley, and Young, titled “Resiliency Tactics During Financial Crisis: The Nonprofit Resiliency Framework” (2022). I was excited to see this piece included in the collection. While there is much interest in many quarters in resilience generally, application to the nonprofit world in ways that are well-defined and lead to lasting positive change has been somewhat less obvious. In following up on work appearing since the article was published, I was pleased to note and subsequently read for review Young and Searing’s recent book Resilience and the Management of Nonprofit Organizations: A New Paradigm (2022).

For the reasons referenced in the introduction to this essay, a book on the topic of the resilience of nonprofit organizations is sorely needed. What makes this book so remarkable for potential readers is its immediate potential for application to those working in the nonprofit sector. The authors clearly are aware that the playing field has changed for nonprofits, and if these organizations are to survive and thrive in this new environment, their leaders, perhaps in more than any other sector of society, will have to understand resilience, make better use of scarce resources, and improve their adaptive capacity and problem-solving skills. This book brings to the fore the concept of organizational slack as contributing to resilience, echoing the Hirschman (1970) concept. Young and Searing rightly note that nonprofits are held as ‘paragons of virtue’ while being given inadequate resources to engage in their missions (2022, p. 1). The assumption is that nonprofits must constantly prove themselves worthy of their status, run absurdly tight budgets, and always be at the ready with whatever society needs, even though the threat of change in a variety of respects – climate, technology, economics, politics, and others – threatens the very existence of even large, well-established nonprofits.

As Young and Searing pointed out in Chap. 2, the nature of risk and the potential for catastrophe necessitate action and preparedness, and enhancement of nonprofits’ abilities to cope with changing circumstances and shocks. Generally, slack refers to surplus resources, and may either point to inefficiency (negative) or a safeguard against ambiguity and shock (Bogetoft & Kerstens, 2022). Chapter 3 introduces the concept of slack for resilient nonprofit organizations, with slack being a basic source of resilience – the point is to not have too much, but to have enough (a so-called Goldilocks zone of slack) to serve as a shock absorber and safety net. COVID-19 proved the folly in demanding of nonprofits a no-slack approach, and the lack of resilience seen in the pandemic among such organizations begs the question of whether organizations can pivot to a resilient mindset in time for the next challenge.

Chapter 4 examines how assets, such as endowments, and liabilities can play into resilience. Chapter 5 on fixed and variable costs stands out in its clear explanation of how cost decisions lead to presence or absence of slack and thus resilience. Chapter 6 examines income and resilience. Throughout the text, there are examples included that shed light on the concepts and help convey the usefulness of the material in practice.

Chapter 7 focuses on technology and resilience in nonprofits. There was a great deal of organizational learning that went on during the pandemic, notably in terms of telework (Atkinson, 2022), but with many businesses and organizations anxious to return to the office, it is an open question from a resilience perspective whether the knowledge gained about best practices and technology requirements for telework can be maintained for when we will need this capacity again.

Chapter 8 focuses on people and resilience; here, human resources practices and concerns about volunteers are taken up by the authors with a resilience focus. Chapter 9 focuses on entrepreneurialism that is possible in crisis situations for nonprofits. If I have a critique for the book, it is the relatively minor point that entrepreneurialism in crisis relies heavily on the goodwill and altruism of people, who might be prone to self-serving behavior, or at the very least be limited in their viewpoint and judgment, failing to see the far-reaching implications of their decisions. Given that nonprofits serve the public, this can be a serious point of vulnerability; there is not a universal standard or expectation of prudence, and that one might suppose can be positive or negative, depending on perspective.

Chapter 10 explores the importance of networks for nonprofit resilience; the authors pointed out that the quality of connections is an essential consideration – and to focus on number of connections alone simply does not work. This is a great point about resilience and shows the need to make resilience – planning and preparedness – an ongoing matter, about building relationships and increasing capacity – not just meeting once, writing a report or plan, and waiting for disaster to strike. Chapter 11 follows up with material on stress tests. Chapter 12 closes the work with a conclusion, highlighting the usefulness of slack, and encouraging a thoughtful approach to resilience planning for nonprofits. So many organizations approach their work and planning with traditional views of efficiency and optimal approaches to allocating resources, but the complexity of operating in a world with risks and imperfect information is that, at some point, we must admit that we lack information we need to make the best decision possible. We must make decisions based on what we know, plan for shocks and disruptions, and hedge our best for the long-term stability of organizations. Because nonprofits serve essential public needs, failing to do that means that the everyday disasters of today will be the out-of-control catastrophes of tomorrow.

I am pleased to recommend this book – it is well-written, keyed to the interests of practitioners, and has real potential to make a positive difference in resilience planning for nonprofit organizations. I hope that nonprofit organization leaders will read it.

Tracey M. Coule and Carole Bain (2021). Organizing Logics, Nonprofit Management and Change: Rethinking Power, Persuasion and Authority. Routledge. 196 pp. ISBN 9780367371005 (hbk, $170 USD); ISBN 9780367711047 (pbk, $52.95 USD); ISBN 9780429352676 (e-book, VitalSource, $52.95 USD)

I think a lot about dysfunction and toxic leadership, and how people, so capable of greatness, can destroy organizations, institutions, and themselves. I worry about the collateral damage that self-serving people may cause in trying to make their visions reality, and to create a world in their image. Even well-intentioned people can create serious trouble in organizations. Organizational failures are valuable to study, and there is much we can learn from cautionary tales of complex failures, where the seeds of vulnerability in an organization are sown early on. Many factors usually contribute, and at least at first, the factors may not appear to be working together to create disruption (Shields, 2006). This makes failure insidious.

Organizational challenges, including toxic personalities and declines in organizations necessitating instances of exit and voice (Hirschman, 1970), can cause people to have serious individual emotional responses. Coping skills are needed (Bhandarker & Rai, 2019). With nonprofits, it is reasonably certain that one will encounter people that are very committed to a cause or mission, if not true believers that have their way of looking at how things should be done. Because nonprofits typically involve people that believe in what they do and care about the work, the personal impact of toxic leadership and dysfunctional workplace practices can be even worse.

Organizing Logics, Nonprofit Management and Change (Coule & Bain, 2021) considers the impact of professionalization and managerialism on the nonprofit culture, drawing upon a three-year ethnography. This dynamic portends a battle of sorts between two competing rhetorics – corporate and community logic. This is not simply a discussion of which has primacy – the soul of the organization embodied in the mission or paying for the endeavor, the ‘body’ of buildings, institutions, staffing, and resources within which the ‘soul’ lives. Corporate logic in the example of this book tended to make the charitable purpose – the very root of the organization’s being – a secondary purpose to making money. In the preface, the book’s authors speak about the organizational leader, and mention being fascinated with “how one individual could have such an impact, so quickly, within an organization that had been around for over a century” (p. xiv). It is a fascinating narrative, but my reaction to the book was more visceral; having been around people that exhibited some similar characteristics on occasion, I felt revulsion, and frequently sadness for the people involved. Organizing Logics, Nonprofit Management and Change is not a typical nonprofit management book; it is more a journey that leaves the reader changed.

After an introduction that sets forth the book’s purpose, the chapters are organized into two parts. The first part shows the organization’s staff trying to make sense of a world characterized by the two divergent logics, against the backdrop of symbolism and rhetoric. Part two describes the transition of ‘who we are’ as an organization away from charity to something that does not meet general requirements of philanthropy. We are told of an organization that has moved from relatively simple beginnings to sprawling, diverse offerings, international offerings, and a growthist agenda. There has been a movement away from charity to a hybrid organization, given a compelling need to pay for everything. There is mention of the need to fill the ‘war chest,’ which might seem like an effort to grow resilience and slack, but it becomes clear enough later in the book that the organization is moving far beyond slack to a venture that is more or less commercial. The point, it is noted, is to beat competition and to be first. In nonprofit parlance, this makes little sense, and the disillusionment only grows from there. People that are on board with the new system are rewarded. We see good people, who are committed to the organization’s primary mission and stand up for principles, fall by the wayside.

I tend to be an idealist and advocate, but I am also aware enough about how the world works to not be shocked by organizational decline, and people behaving badly. I was not prepared, I suppose, to care about the people in the book and what they were going through, but I did. I was angry and annoyed along with them, and dismayed about how the organization’s clients were being served. Having experienced the archetypes of toxic leaders, the portrayal made me feel a little sick for everyone involved.

The book raises excellent questions about organizational shifts, from public-supporting, to professionalized and business-like, and it is worthwhile to ask questions about what changes, and what is lost and possibly left behind in engaging in such modification. My reactions should be taken as a good indication that this book accomplishes its goals of skillfully describing the shift from charity to professionalization and corporate logic, and doing so through a narrative that is absorbing and hard to put down.

Synthesis

All three of these books provide valuable insight into the present circumstances of nonprofit management. Understanding Nonprofit Organizations gives students an excellent foundation in the field, from both academic and practitioner perspectives, with plenty of opportunity for discussion and debate about cases that reflect well the effort required to work well in this sector. The Young and Searing book offers practitioners real-world ready examples for how to take the often-misunderstood concept of resilience and turn it into an opportunity for positive change for nonprofits. Finally, the contribution from Coule and Bain teaches about change and competing priorities in the nonprofit community; the book should give readers pause as they consider what is promised by corporate logic, and the potential costs that may exist for charitable missions.

Hirschman’s (1970) thinking is either referred to directly in these works or further informs what is illustrated. Slack as an organizational characteristic is an intriguing concept from a resilience perspective, but the Coule and Bain narratives show the limits of filling a war chest beyond the need for a buffer to regular, defensible operations. Understanding Nonprofit Organizations makes clear the various components that add to the complexity of any decision being made in nonprofits but does so in a way that (hopefully) prepares, rather than dissuades. Nonprofits being as critical as they are to society, those that commit themselves and their efforts to nonprofit work deserve support. These books show the complexity, but also provide a way forward in avoiding pitfalls, and moving toward capable leadership, quality management, and resilient thinking.

Christopher L. Atkinson

is an Assistant Professor in the Public Administration program at the University of WestFlorida.

Declarations

Ethics

The author has no relevant financial or non-financial interests to disclose. The author certifies that he has no affiliations with or involvement in any organization or entity with any financial interest or non-financial interest in the subject matter or materials discussed in this manuscript. The author has no financial or proprietary interests in any material discussed in this article.

Conflict of Interest

The author has no conflicts of interest to declare that are relevant to the content of this article.

Informed Consent

This research does not involve human participants and/or animals. Because the work does not involve human subjects, informed consent is not applicable.