Nonprofit Organizational Effectiveness: Contrasts Between Especially Effective and Less Effective Organizations

Abstract

Abstract How do key stakeholders of nonprofit organizations (NPOs) judge the effectiveness of their organization? Are the judgments of stakeholders similar, and how are board effectiveness and the use of practitioner‐identified correct management procedures related to judgments of effectiveness? This study focuses on a subset of especially effective and less effective NPOs from a larger sample and finds that the especially effective have more effective boards (as judged by various stakeholder groups), have boards with higher social prestige, use more practitioner‐identified correct management procedures, and use more change management strategies. Practical implications discussed include adopting more correct management procedures and change management strategies.