VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations
This article evaluates economic theories of the non-profit sector by their ability to enlighten our understanding of the scope of inquiry, the determinants of the size and scope of the non-profit sector, and the behavioural responses of donors, volunteers, paid staff and non-profit organisations to changes in their external environment. Adherence to a non-distribution constraint has proven to be a...
Ideology and altruism are central to understanding the non-profit charitable sector. This paper addresses three questions. Why do people make charitable gifts? Why do they usually give to non-profit organisations? When can non-profits run by committed ideologues compete with profit-oriented entrepreneurs in the provision of services? the altruistic motives of individuals and the ideological commitments...
The 1995 Voluntas Symposium was supported by the Center on Philanthropy, University of Indiana; the Institution for Social Policy Studies and the Program on Nonprofit Organizations at Yale University; the Center for Social Research and Instruction at Rutgers University; and the International Society for Third-Sector Research at Johns Hopkins University. The support of these institutions is gratefully...
Burton Weisbrod's 1975 article, Toward a theory of the voluntary non-profit sector in a three-sector economy, models non-profit organisations as suppliers of public goods which are undersupplied by government to heterogeneous populations. This article examines the implications, extensions and empirical tests of the Weisbrod theory. It also examines the theories of pure and impure altruism, the heterogeneity...
This article examines the trust hypothesis: the claim that asymmetric information can explain the existence of non-profit enterprise in certain markets. We argue that this hypothesis, in order to be viable, has to meet three challenges: ‘reputational ubiquity’, ‘incentive compatibility’ and ‘adulteration’. Drawing on modern agency theory, we conclude that the trust hypothesis stands on shaky ground...
This article examines and organises the economic literature dealing with non-profit institutions using the concept of ‘stakeholders’. In general, the literature identifies conflicts between various groups of stakeholders and then proceeds in two very different directions. The first is supportive of the non-profit sector, suggesting that non-profit organisations resolve those conflicts more effectively...
This article summarises the main results of entrepreneurship theories of the non-profit sector and discusses the impact they may have on theory development and on the real world non-profit sector. It is pointed out that the entrepreneurship approach advances our knowledge of the non-profit sector, especially by stressing the supply-side aspect and by focusing on the preferences individuals must have...
Involvement in voluntary associations is analyzed from the perspective of questions raised in the debate about civil society. After demarcating the concept of civil society in relation to the community, the market, and the state, expectations are formulated about the negative effects of modernization and individualization on volunteering and the positive effects of volunteering on social capital and public discourse. World Values 1990 data are used for inter- and intranational analyses. Neither rankings of thirteen Western nations nor in-depth analyses of the U.S., the Netherlands, and Italy support worried reflections about the effects of modernization. The Idea that involvement in voluntary associations is conducive to social cohesion and political democracy finds empirical support. Both mere membership of an association and actual volunteering within such an association appear to be important in this respect....
This article presents a case study of how members of three funding organizations evaluated the same two agencies in Canada. The research on which the article is based sheds light on the “organizational effectiveness” construct, on the ways in which the evaluators use it to reach conclusions on agency effectiveness, and the relation between these conclusions and funders' decisions on agency funding. The authors describe a framework for understanding evaluation processes, describe three funders in terms of this framework, set out predominant patterns in evaluation processes the funders used, and show the effects of these patterns from the agency's perspective. They then discuss the implications of the findings for agency managers and how the findings relate to theories of organization....
This article focuses on the close linkage between domestic philanthropy and commerce at the end of the early modern period, and the sophistication with which well-connected evangelical institutions transcended the confines of established religion and territorial boundaries. Use of a large set of primary and secondary sources that are relatively unknown in the history of the voluntary sector permits the examination and analysis of several notable aspects of the Francke Orphanage Foundations, an 18th-century central European institution of evangelical reform and colonial mission. Particular attention is given to the innovative efforts of their founder, August Hermann Francke, to secure an independent financial base for his institutional goals. These goals, which were supported in large part by members of the German nobility and of merchants in the imperial cities, included but were not limited to reform of charity care and education. From the outset, a close network of personal supporters and evangelical institutions that extended throughout Protestant Europe proved essential for both trade and evangelical mission; this network permitted expansion into Russia and the Baltic provinces, Hungary, the Near East and India, and eventually the British North American colonies....
This article argues that foreign assistance, as an external force, has played an important role in shaping the local democracy-building process in Poland. The local context, which is omitted from the transition debate, is considered, and the influence that U.S. public donors exercised at the local scale is highlighted. The article claims that the delayed commitment on the part of these donors to local democracy and to the building of self-governing capacities and participatory practices has undermined the stability and effectiveness of the reforms in Poland. It is shown how this process took place through three different constructs: initial lack of direct assistance; the form under which this assistance was provided; and the donors' selectivity of recipients, both in terms of social groups and of geographic areas. It concludes by outlining areas where changes of assistance delivery should be made both by the donors and recipient communities....
According to the relevant literature, the relationship between government and the private foundation sector in Germany is marked by a “paradigm of conflict” very similar to the one that has often dominated the U.S. discussion of government/nonprofit relationships in the past. More specifically, scholars often hold that the development of foundations in Germany is largely hampered by an administrative and regulatory climate that weakens rather than strengthens the foundation community. Two main arguments are brought forth in this context: First, the expansion of the state bureaucracy into traditional activity fields of foundations “crowds out” the foundation sector; second, the structure of tax regulations is detrimental to a “sound” development of foundations. However, while these arguments figure prominently in the policy debate, they have neither empirically nor analytically been substantiated as of yet. Borrowing from organizational theory, this article critically evaluates the arguments in the light of available evidence in an effort to contribute to a better understanding of foundations in an international context....
The drive to welfare reform has revolutionalized the relationship between the state and the third sector in many countries. But this article argues that, if we are to understand the impact of the changing role of the state on the third sector, then we must first understand the dynamics of the relationship between national and local government. It compares two countries—the U.K. and Italy—where national-local government relations have developed in different directions, and suggests a number of avenues for further analysis of this three-way relationship....