Peter Frumkin is the Mindy and Andrew Heyer Chair in Social Policy, faculty director of the Center for Social Impact Strategy, and director of the Masters in Nonprofit Leadership Program, all at the University of Pennsylvania’s School of Social Policy and Practice.
Ever since the professionalization of the nonprofit sector that took place 30 years ago, nonprofit executive salary has been influenced by business compensation concepts—but for-profit pay practices cannot be indiscriminately applied to nonprofits. So what really powers executive pay in the sector? As it turns out, size does matter.
The issue of competition may show up a little differently for nonprofits than for for-profits—and, of course, collaboration is the new competition—but being able to assess this component of our environments is core to many a nonprofit’s strategic decision-making.
In this article from 2004, the authors look at the institutional pressures that cause programs to be replicated without any evidence that they work better than other programs in the same field—or, in some cases, that they work at all. One of the programs described here is DARE, now proposed by U.S. Attorney General Jeff Sessions as a major partner for the Department of Justice in drug enforcement work.
More and more, nonprofits are behaving like businesses and businesses are upholding—or at least claiming to uphold—social values. So how does today’s social entrepreneur decide on which organizational form to take? This article offers a framework built on foundation theory and early conceptual models to help the entrepreneur make an informed decision.
In a frank and clearheaded introduction to this issue, the authors explore the economic challenges that lie ahead and offer guidance for negotiating the various conundrums of nonprofit financial structures.