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Building the Knowledge Base of Nonprofit Management:
A Searchable Database
A Methodology for Measuring the Financial Vulnerability of Charitable Nonprofit Organizations
Abstract
This article defines a charitable nonprofit organization as financially vulnerable if it is likely to cut service offerings immediately when a financial shock occurs. It discusses why the vulnerability of the nonprofit sector is of interest to researchers, explores the destabilizing role of third-party finance, considers the reasons for the lack of research on vulnerability, and presents a conceptual framework for identifying financially vulnerable nonprofits. Four vulnerability criteria are defined and applied to a 1983 national sample of tax returns filed by 4,730 U.S. charitable nonprofits. The financial data of at-risk organizations are then analyzed to discern the characteristics of vulnerable and other nonprofit organizations.
Journal
(December 1991)
vol20
no4
pages445-460
Categories
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Nonprofit Management
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Financial Planning and Management
