Nonprofit Board Turnover and Financial Performance: Examining Optimal Board Turnover Rate in United Way Organizations

Nonprofit Management & Leadership, Forthcoming

39 Pages Posted:

See all articles by Seung-Ho An

Seung-Ho An

University of Arizona - School of Government and Public Policy

Date Written: 2021

Abstract

This article examines the effects of board turnover on nonprofit financial performance: resource acquisition and utilization. Governing board members play key roles in connecting organizations with external environments and ensuring that executives properly manage the organizations to achieve organizational missions. They also help in effectively attracting and appropriately utilizing financial resources. Given the importance of governing board members, any turnover occurring in the board should affect nonprofit financial performance. Using insights from organizational theories, we argue that the relationship between board turnover and the ability of UW organizations to acquire and utilize funds is nonlinear (first positive and then negative). We find general support for the hypothesis, which yields implications for both research and practice of board governance and human resources management in the nonprofit sector.

Keywords: Nonprofit Board Turnover, Nonprofit Financial Performance, Optimal Board Turnover Rate, Turnover-Performance Relationship, United Way Organizations

Suggested Citation

An, Seung-Ho, Nonprofit Board Turnover and Financial Performance: Examining Optimal Board Turnover Rate in United Way Organizations (2021). Nonprofit Management & Leadership, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3810977 or http://dx.doi.org/10.2139/ssrn.3810977

Seung-Ho An (Contact Author)

University of Arizona - School of Government and Public Policy

315 Social Science Building
Tucson, AZ 85721
United States

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