Preferred Name
Emily Irungu
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Date of Graduation
5-15-2026
Semester of Graduation
Spring
Degree Name
Doctor of Philosophy (PhD)
Department
School of Strategic Leadership Studies
First Advisor
Margaret Sloan
Second Advisor
William Ritchie
Third Advisor
Minjong Jun
Abstract
Abstract
Nonprofit organization (NPO) executives play a crucial role in safeguarding their organizations' financial stability, particularly amidst fluctuating charitable contributions. Sustaining financial health and achieving their mission and vision critically depend on securing long-term, stable funding. This imperative necessitates a sophisticated understanding of financial management, encompassing not only fundraising but also strategic resource allocation and robust risk mitigation. Achieving such stability is a complex endeavor, requiring adaptive strategies to navigate dynamic economic landscapes and evolving donor priorities. Ultimately, the sustained impact and operational longevity of NPOs are directly contingent upon the executive leadership's capacity to cultivate robust and resilient financial models.
Fiscal health represents a paramount challenge within the nonprofit sector. The unfortunate closure of numerous nonprofit ventures due to insufficient funding underscores the urgent need to investigate effective strategies employed by executive leaders to bolster revenue streams. Despite their crucial role in addressing societal gaps left by public and private sectors through essential goods, services, and resources, nonprofits frequently encounter financial adversities. These challenges often stem from narrow profit margins, intense competition from the private sector, and a heavy reliance on unpredictable public sector funding.
This research systematically explored the strategies utilized by nonprofit executive leaders to enhance financial health, with a particular emphasis on the moderating influence of lobbying activity. Specifically, the study investigated whether lobbying impacts the efficacy of strategies such as volunteer engagement and administrative efficiency in fostering financial stability. Adopting a theoretical framework rooted in public management theory, this study provides a comprehensive analysis of executive strategies and their implications for nonprofit financial resilience.
Employing a quantitative methodology, this analysis utilized pooled cross-sectional data from the National Center for Charitable Statistics (NCCS), which compiles yearly tax return data from IRS Statistics of Income Form 990 for all nonprofit organizations. Financial health, serving as the dependent variable, was measured through return on assets, operating margin, and revenue diversification. Independent variables included volunteership and administrative efficiency. Data analysis was conducted using SPSS software, with a focus on examining lobbying as a moderating variable.
The significance of this study lies in offering NPO executives evidence-based guidance on whether lobbying can either augment or diminish the effectiveness of other strategic management practices in supporting financial stability. While prior research has predominantly focused on for-profit businesses and other organizational contexts, this work delves into analogous issues and proposes alternative solutions specifically tailored for the unique landscape of the nonprofit sector.
Key words: Nonprofit financial health, executive leader’s strategies, financial distress, financial vulnerability, financial sustainability, lobbying, moderation effects, public management theory.
