Historically, the major challenge faced by nonprofit organizations has been obtaining the funds to accomplish their missions. Over the last couple of decades, and most certainly now, it has become apparent that nonprofit organizations are dealing with an even greater challenge (Babbie, 2013). Lack of efficient business practices is significantly affecting the organization’s stability.
This not only affects the organizations but also the communities, which rely on their services. Extensive research done in this area has suggested that inadequacies in board governance and lack of business practices are hindering these organizations from thriving financially.
This study would contribute to the construction of social theories by showing how formal education is vital in specific areas as well as business practices within nonprofit organizations.
Problem
There has been an ongoing issue with non-profit organizations’ failure to integrate common business practices into their organizational culture. As a result, these nonprofit organizations are operating under unsatisfactory conditions, which have led many down the path of destruction and financial instability.
This issue is worth studying because many of these organizations significantly affect our communities. The findings obtained from this study may be used in improving the efficiency of non-profit organizations in the future.
Literature review
Most of the recent research done in regards to nonprofit organizations’ success has consistently addressed key challenges nonprofit organizations have in common.
It has been suggested that balanced scorecards in nonprofit organizations (NPOs) can eliminate common challenges and enhanced organizational stability through proper management of resources such as knowledge of essential business practices and implementation (Yang, Cheng, & Yang, 2005).
Performance in nonprofit organizations (NPOs) can be enhanced through proper management of resources such as knowledge (Lettieri, Borga, & Savoldelli, 2004). According to their arguments, some of the factors that affect knowledge management include the NPOs’ position in the life cycle, characteristics of the governing board, and the average age and turnover of the operators in it.
According to some experts, performance of NPOs is affected by market orientations and entrepreneurial outcomes, which are in turn affected by the role of the board members who govern them (Morris, Coombes, Schindehutte, & Allen, 2007).
It is evident that the performance of NPOs is positively impacted by market outcomes and entrepreneurial orientations, among other factors such as the experience and leadership skills of the board members. The trend among these studies is the suggestion of utilizing a strong model based on vital business practices that can enhance board governance and organizational effectiveness thus, fostering sustainability.
Subjects for Study
In order to collect the data, the researcher will select a health care nonprofit organization in the United States at random. Board members will be evaluated from the selected organizations 501 (c) information that is found in IRS form 1990 as well as be evaluated in order to obtain their level of business education.
The researcher will also interview the organizations management and board personnel. Participants’ privacy will be upheld to ensure that the research does not harm them.
Protecting human subjects
Some few years back, researchers have been often watchful about exposing the ethical dilemmas they encountered in the field. Today, the situations have changed, and more researchers are seeking advice from the psychologists and colleagues on how to tackle sensitive research issues.
In this regard, before the data collection process is undertaken in our research, permission for the study will be requested from the organization and the Institute of Research Board. Equally, the research will follow the directives of the APA Code of Ethics. As such, the research will cause no harm to the participants, safeguard the participants’ privacy, and be voluntary.
During the research, participants should be informed of what is required of them before the start of the project, the length of the project, benefits accrued from the project, possible risk associated with the research, and who to consult.
Measurement
To achieve our objectives, appropriate instrumentation tools will be selected to measure our variables. The variables measured will be level of education, and financial stability, and longevity. Level of education is defined as individual having acquired a minimum of a bachelor’s degree in business or a related field.
Financial stability and success is defined as the state, which the economic means of price formation, money distribution, and risk management function correctly in an effort to enhance economic development. An organization’s financial statement must be evaluated to determine its financial stability.
Longevity refers to the workers’ duration of work experience in an institution or business. Workers’ experience in an organization will indicate how they are absorbed in the organizational culture hence their performance. To measure longevity and organizational culture, a questionnaire will be adopted. In the questionnaire, the contributors will be asked to detail management and production orientation perspectives.
On the other part of the questionnaire, several questions measured on a five point Linker scale will be included. Linker scale is a variable measuring tool with strongly agree, agree, undecided, disagree, and strongly disagree options. This scale is scale is very effective because it will indicate the extent of employees’ satisfaction.
Methodology
Community based nonprofit organizations struggle with financial sustainability due to their board’s lack of business education and board governance. The researcher hypothesizes that community based nonprofit organizations that lack business education amongst their board members hinders organizational sustainability.
The independent variable is the amount of business education and board governance will be measured by how much of the board has a business education. The scale of measurement will be an ordinal scale. Reviewing public records of community based non-profit organizations over the last ten years is an effective and secure method in obtaining the records of nonprofit organizations and their board members.
The nonprofit organizations will be randomly selected from secured government websites such as www.USA.gov and IRS.com and 501 (c) or NPO organizations information IRS form 1990. The board member of the selected organizations will be evaluated according to business education defined as individuals having acquired a minimum of a bachelor’s degree in business or a related field.
Members will be labeled as “business educated” or “not business educated” based on this criteria. The scale of measurement will be an ordinal scale. The sampling criterion strengthens the study as it enables the researcher to reach the targeted participants. To measure longevity and organizational culture, a questionnaire was adopted. Equally, the organization’s financial statement must be evaluated to determine its financial stability.
This research is a quantitative analysis of how business education among board members relates to the success of nonprofit organizations. Business education among board members is more practical to measure than evaluating each individual background and reduces bias.
The fault with this however, will be that some individual may not have a degree in the area of business but has experience that has imparted similar knowledge. Each board member qualification can be obtained through reliable government websites and forms, which will also eliminate bias.
This research focuses on gaining an understanding of why the selected health care nonprofit organization is operating under unsatisfactory conditions, which have led it down the path of destruction and financial instability. In the end, the research intends to identify whether education level, financial stability, or longevity are the reasons fueling poor performance in these organizations.
Data collection methods
Data collection methods are important aspect of the research. For this study, the data method will be field research. This method entails acquiring public data from secure and reliable government sources, face-to-face interviewing, and questionnaire. Government sources will provide the researchers with crucial information such as the present and the past financial statements and the board members qualification.
These sources are very efficient since they are bias free. The face-to-face interview will require a participant to question the employees in person to collect their personal views. During the interview, the contributors will be asked to detail management and production orientation perspectives.
Equally, questionnaires will be used to collect private information from the participants. Questionnaires will be appropriate because some participants might not be comfortable to detail some of information during face-to-face interview. Reanalysis of related research will also be a utilized method of data collection.
Ethical issues
During our research, ethical considerations related to privacy and confidentiality will be upheld. However, if issues related to research ethics arise research leaders should follow these certain steps to address them. They should identify the issues and the parties, identify the options, and consider the consequences, analyze options, and act with commitment.
Analysis
After the end of our research, we will be able to ascertain the main reasons that cause non-profit organizations’ failures to integrate common business practices into their organizational culture. As such, the analysis will explain the reasons why nonprofit organizations do poorly concerning business practices and board governance. After the data is collected from the field, they will be compiled into an excel spreadsheet.
Later SSPS software will be used to make tables, charts, or distribution plots. Thereafter, the data will be analyzed for accuracy. Notably, the failures of nonprofit organizations are not well understood.
Therefore, the analysis part will try to uncover the operation of these organizations and demystify their assumptions. Through these initiatives, we will not only be able to explain the current way things are in these organizations, but also come up with a plan for the variation of quality.
Schedule
The goal is to have a completed rough draft by January of 2014. By mid 2014 with the research portion will be in its final stages. By January 2015, research and preliminary draft will be completed. A final draft will be completed by the summer of 2015.
Budget
The researcher will fund the research. It is assumed the major expenses will be towards personnel, equipment, and office supplies. Any student may be able to volunteer services for a nonprofit organization in exchange for using their facility and supplies for research purposes.
References
Babbie, E. (2013). The Practice of Social Research (13th Edition). Belmont, CA: Wadsworth.
Lettieri, E., Borga, F., & Savoldelli, A. (2004). Knowledge management in nonprofit organizations. Journal of Knowledge Management 8(6), 16-30.
Morris, M., Coombes, S., Schindehutte, M., & Allen, J. (2007). Antecedents and outcomes of
entrepreneurial and market orientations in a nonprofit context: Theoretical and empirical insights. Journal of Leadership and Organizational Studies, 13(4), 12-39.
Yang, C., Cheng, L., & Yang, C. (2005). A study of implementing Balanced Scorecards (BSC) in nonprofit organizations: A case study of private hospital. Human Systems Management, 24(1), 285-300.