Telesilla O. Kotsi, A. Aflaki, Goker Aydin, Alfonso J. Pedraza-Martinez
{"title":"Allocation of Nonprofit Funds Among Program, Fundraising, and Administration","authors":"Telesilla O. Kotsi, A. Aflaki, Goker Aydin, Alfonso J. Pedraza-Martinez","doi":"10.2139/ssrn.3460795","DOIUrl":"https://doi.org/10.2139/ssrn.3460795","url":null,"abstract":"Problem definition: U.S. nonprofits declare three types of expenses in their IRS 990 forms: program spending to meet beneficiaries’ needs; fundraising spending to raise donations; and administration spending to build and maintain capacity. Charity watchdogs, however, expect nonprofits to prioritize program spending over other categories. We study when such expectations may lead to the “starvation cycle” or underspending on administration and fundraising. Methodology/results: We characterize optimal budget allocations to program, fundraising, and administration spending categories using a two-period model, which also includes the nonprofit’s capacity, return on program spending (the net value of program spending to beneficiaries), and beneficiaries’ uncertain future needs. We find that the nonprofit’s capacity plays a significant role in the optimal allocation. The nonprofit should (a) at high capacity, spend only the necessary amount on administration to maintain its current capacity; (b) at moderate capacity, maintain its current capacity while limiting program spending in favor of fundraising; and (c) at low capacity, increase administration spending to expand its future capacity. When we compare the optimal allocations prescribed by our model to the actual spending levels reported by a foodbank network, we find that the foodbank underspends on administration and fundraising, suggesting the forces that lead to the starvation cycle may be in play. Another possibility is that the nonprofit’s own estimate of its return on program spending is higher than our estimate—At higher estimates of return on program, the gap between our prescribed solutions versus actual spending levels decreases. Managerial implications: Our paper introduces an important discussion on nonprofits’ starvation cycle and finds conditions that justify prioritizing administration and fundraising expenses. It also highlights that watchdogs should consider nonprofits’ return on program spending in addition to their capacity and future needs when evaluating them. Funding: T. O. Kotsi thanks the Onassis Foundation (Greece) for financial support. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2020.0660 .","PeriodicalId":307190,"journal":{"name":"PSN: Other Political Institutions: Bureaucracies & Public Administration (Topic)","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114753296","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Metabolism of Public Organizations: A Case Study","authors":"M. Coccia","doi":"10.1453/JSAS.V6I1.1793","DOIUrl":"https://doi.org/10.1453/JSAS.V6I1.1793","url":null,"abstract":"Abstract. This study suggests the concept of Metabolism of organization that explains how public organizations use and/or transform inputs (mainly public funding) to produce and supply products and services. This approach is useful for analyzing costs and supporting best practices of management to increase efficiency of organizations. An application of this approach is showed on one of the largest public research organizations in Europe. Results indicate, from 1997 to 2015 period, that the cost of personnel has a very high growth rate (167.87), total cost of CNR has a high one (127.44), whereas total revenue (state subsidy) has a lower growth rate:118.72. This result suggests an imbalance of growth rates between dynamics of total revenue and vital costs within this PRO, generating economic issues and inefficiencies for this organization in the long run. R&D management implications conclude this study. Keywords. Research organizations, R&D funding, Cost management, Cost analysis, Budget system, Metabolism. JEL. N30, O30, O31, I23.","PeriodicalId":307190,"journal":{"name":"PSN: Other Political Institutions: Bureaucracies & Public Administration (Topic)","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127192982","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Public Administration as a Function of Executive and Legislative Power","authors":"William G. Resh","doi":"10.4337/9781786432070.00010","DOIUrl":"https://doi.org/10.4337/9781786432070.00010","url":null,"abstract":"In this essay, we explore the question of “who, if anyone, controls the federal bureaucracy?” In doing so, we look at the issue of delegation — a fundamental of American representative democracy. We focus on the two constitutional institutions imbued with direct electorally delegated powers — Congress and the presidency. We put most of our focus on the relationships between elected officials and career bureaucrats at the federal level of government. Indeed, multiple actors within and outside of the federal government participate directly and indirectly in the formation and monitoring of the bureaucracy and participate, partner, or perform its primary function — policy implementation. The complexity of the relationships among this multiplicity of actors, the distribution of power among them, and the different manners by which they exchange information leads to an accumulation of scholarly attempts to model bureaucratic politics using countless different methods. The overwhelming choice of theoretical lens in examining the relationship between elected officials and the administrative state is that of principal–agent theory (PAT), which emanates from economic transaction and contract theory. We explore the assumptions made in the application of this theory to political-bureaucratic relations. In doing so, we argue that the study of bureaucratic politics requires a multidisciplinary approach with a greater appreciation for the contributions of cognate areas of study such as organizational behavior, social psychology, and public management. Also, public administration scholars will do better to incorporate a more deft appreciation for the influence of political institutions on individual bureaucratic behavior.<br>","PeriodicalId":307190,"journal":{"name":"PSN: Other Political Institutions: Bureaucracies & Public Administration (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129997338","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic Patriotism after the Crisis: Explaining Continuity and Change in European Securities Enforcement","authors":"Chase Foster","doi":"10.2139/ssrn.3046940","DOIUrl":"https://doi.org/10.2139/ssrn.3046940","url":null,"abstract":"Since the global financial crisis, European governments have sought to intensify the supervision of financial markets and national regulators have received broader powers to sanction securities violations. Yet few studies have empirically examined whether regulatory approaches have systematically shifted in the aftermath of the crisis, and how these reforms have impacted long standing national strategies to promote domestic financial interests in the European single market. Examining hundreds of enforcement actions in three key European jurisdictions, this paper provides one of the first comparative assessments of the pattern of longitudinal change since the crisis. In the UK, aggregate monetary sanctions have increased 40-fold since the crisis, while criminal convictions for insider trading have skyrocketed from zero before 2009 to 40 from 2009-2015. In France and Germany, by contrast, there have not been systematic changes in domestic securities enforcement patterns, with both countries assessing penalties and prosecuting insider trading at similar rates before and after the crisis. \u0000Building on Story and Walter’s (1997) account of how France, Germany, and the UK sought to shape the rules of the single market to benefit national financial interests, and Clift and Woll's (2012) work on “economic patriotism” in open markets, I argue that longstanding industrial strategies still influence the enforcement of financial regulation, but that depending on the relationship between the crisis and the domestic regulatory system, these strategies have been adjusted to different degrees. In the UK, where the financial crisis was a direct rebuke to the “light touch” regulatory approach, financial supervision was overhauled, and more adversarial enforcement strategies institutionalized, to preserve London’s status as an international financial centre. By contrast, in France and Germany, where domestic regulatory systems were not as implicated by the financial crisis, domestic securities supervision and enforcement changed less dramatically; however, the crisis also created a window of opportunity for both countries to successfully push for new European-level regulation that the UK had previously blocked, leading to new centralized supervisory institutions that could eventually undermine national industrial strategies. In sum, in all three cases the enforcement response to the crisis was intended to maintain pre-existing policy regimes established to promote national financial interests within the European single market; but because the crisis had different implications for domestic regulatory arrangements, we observe different patterns of change in securities enforcement practices.","PeriodicalId":307190,"journal":{"name":"PSN: Other Political Institutions: Bureaucracies & Public Administration (Topic)","volume":"80 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124112389","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Commentary: The State-Building Myth of Pragmatism in the 'Singapore Story'","authors":"Max Everest‐Phillips","doi":"10.18003/AJPA.20172","DOIUrl":"https://doi.org/10.18003/AJPA.20172","url":null,"abstract":"Fifty years ago, the Nobel prizewinning economist Sir Arthur Lewis pithily noted that the secret of development was simple: ‘sensible politics and good public administration’ (Lewis 1966, p.xiv). Attempts to explain why such an easy formula has proved so difficult to implement over the last half-century have filled libraries. Defining ‘sensible’, clarifying ‘good’ and then trying to combine them has challenged academics, confounded public officials and baffled politicians almost everywhere.","PeriodicalId":307190,"journal":{"name":"PSN: Other Political Institutions: Bureaucracies & Public Administration (Topic)","volume":"C-35 8","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132394500","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
V. Milligan, Chris Martin, R. Phillips, Edgar Liu, Hal Pawson, Angela Spinney
{"title":"Profiling Australia's Affordable Housing Industry","authors":"V. Milligan, Chris Martin, R. Phillips, Edgar Liu, Hal Pawson, Angela Spinney","doi":"10.18408/AHURI-7108401","DOIUrl":"https://doi.org/10.18408/AHURI-7108401","url":null,"abstract":"Australia's emerging affordable housing industry has considerable potential to expand housing options for lower income households. This study examines the industry's current profile and capacity. For the purposes of this study, the affordable housing industry comprises: ?Non-government (for-profit and not-for-profit) affordable housing providers. ?The institutions and individuals that enable, support and regulate their work. Capacity is the ability of the industry to perform its work. Capacity is multidimensional and includes having: ?The resources to do the work, appropriate organisational and workforce capacities, industry-specific skills, effective networks and political influence. The regulated industry comprises two main types of providers: A group of 40 commercially-oriented entities that raise private finance, procure housing and offer diversified housing services. Most in this group could accommodate further expansion and develop their own future capacity. A second group of 283 smaller organisations that mainly provide governmentcontracted tenancy and/or homelessness services. Many have growth potential but lack resources. Capacity-building could be targeted to assist this group. There is also a sizeable group of (both registered and unregistered) Indigenous-run community housing organisations (ICHOs). Limited operating scale, poor viability and recent policy disruptions have left many ICHOs vulnerable. An intentional tailored approach to building scale and capacity among this group is critical to ambitions to 'close the gap' in Indigenous disadvantage. Key gaps in industry infrastructure include the absence of: Clear and consistent government and industry leadership. A core industry data set. A financial intermediary to harness private investment. For the industry overall, the main capacity issues identified so far concern: ?The need for scaled-up and predictable growth opportunities to promote further capacity development and strategic investment. Shortcomings in policy-making capacities and regulation.","PeriodicalId":307190,"journal":{"name":"PSN: Other Political Institutions: Bureaucracies & Public Administration (Topic)","volume":"28 13","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132972983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Information Asymmetry and Power in a Surveillance Society","authors":"Geoffrey Lightfoot, T. Wisniewski","doi":"10.2139/ssrn.2383166","DOIUrl":"https://doi.org/10.2139/ssrn.2383166","url":null,"abstract":"This paper fuses Lukes' (1974) three-dimensional view of power with the economic concept of informational asymmetry to explicate how access to information is organized and how power relationships arise from this organization. We argue that many observed asymmetries are deliberate and, drawing from the economics and finance literature, we posit that their outcomes are inevitably detrimental. The paper examines the techniques that foster information imbalances, such as media and propaganda, knowledge production, educational systems, legal and organizational structures, exclusive information networks, and surveillance. We conclude that in the absence of greater transparency, the deleterious effects of unequal access to information will continue and deepen. We further suggest that the analysis of the complexities of the issues warrants a broad, multidisciplinary approach and we suggest what this might include. We reflect on sources and implications of information asymmetry.In doing so, we use a multidisciplinary approach.We fuse Lukes' (1974) theory of power with the economic concept information asymmetry.The paper considers a wide range of social ramifications of the informational game.We conclude that some asymmetries are created deliberately and fortify the powerful.","PeriodicalId":307190,"journal":{"name":"PSN: Other Political Institutions: Bureaucracies & Public Administration (Topic)","volume":"125 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132667273","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Public Enforcement of Directors' Duties","authors":"A. Keay","doi":"10.2139/SSRN.2201598","DOIUrl":"https://doi.org/10.2139/SSRN.2201598","url":null,"abstract":"The general duties owed by directors to their companies are a critical element of company law overall, and corporate governance in particular. If these duties are breached the board, acting on behalf of the company, is empowered to decide whether to take action against the miscreant directors. If no action is taken by the board UK law essentially leaves it to private parties to take any action against the miscreants. The parties who can take action are the shareholders of the miscreant director’s company, and they must do so pursuant to a derivative action. This might be seen as the primary private enforcement mechanism used in the UK when directors commit breaches. This is in line with the UK’s general approach to fostering a private rather than a public approach to corporate governance. It appears that there have been relatively few derivative actions commenced by shareholders, probably because of the many disincentives that confront shareholders. Given this state of affairs the aim of this paper is to investigate whether there is a need for the public enforcement of duties so that there is an enhancement of corporate governance in the UK. This then leads to us asking whether it is feasible and/or desirable to grant powers to a public authority to take enforcement action in appropriate cases.","PeriodicalId":307190,"journal":{"name":"PSN: Other Political Institutions: Bureaucracies & Public Administration (Topic)","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126500484","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Vocational Education and Training Workforce","authors":"Productivity Commission","doi":"10.2139/ssrn.2006076","DOIUrl":"https://doi.org/10.2139/ssrn.2006076","url":null,"abstract":"This Productivity Commission research report was released on 5 May 2011. This report, the first of a suite of three on the education and training workforce, focuses on the Vocational Education and Training workforce. Other reports will follow on the Early Childhood Development and Schools workforces, respectively. Education and training are essential to generate the skills and knowledge required for a productive economy. They also facilitate social inclusion and civic participation. COAG’s reform agenda seeks to raise the educational attainment of the population in general, and of Indigenous Australians in particular. The performance of the education and training workforce has a fundamental role to play in this. A diverse range of public and private VET providers meets many of the expectations of students and significant segments of industry. However, some industry sectors, such as aged care, disability care and early childhood development, have expressed concerns about the skills of VET workers assessed as competent by some Registered Training Organizations. The Commission identified a number of areas where the VET sector and its workforce could operate more effectively. These include being more responsive to the needs of Indigenous Australians, improving managerial and leadership skills and making greater use of information and communications technologies. The report notes that existing industrial relations arrangements in TAFE make it difficult for individual institutions to respond flexibly to emerging demand pressures, such as in the resources sector and in human services. The Commission recommends that individual TAFEs be allowed to recruit, pay and manage their staff in ways that meet their particular business goals.","PeriodicalId":307190,"journal":{"name":"PSN: Other Political Institutions: Bureaucracies & Public Administration (Topic)","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126231251","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}