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A BEHAVIORAL PERSPECTIVE OF SEARCH IN NONPROFIT ORGANIZATIONS: HOW PROGRAMMATIC PERFORMANCE DRIVES FUNDRAISING EFFORTS

  • Author(s): Rousseau, Horacio;
  • Bromiley, Philip;
  • Berrone, Pascual
  • et al.
Abstract

In this paper, we extend the BTOF to nonprofit organizations. Nonprofits hold both financial and higher-priority nonfinancial programmatic performance goals that relate to program spending directed to fulfill a social mission. We hypothesize that, while financial performance above aspirations decreases fundraising, programmatic performance above aspirations increases fundraising efforts. We also theorize that board size, environmental munificence, and program-generated revenue influence the extent of fundraising as a response to attainment discrepancies. We test our hypotheses using a panel dataset of 12,382 U.S. nonprofits and find support for several of our predictions.

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