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Managing Stakeholder Demands

Balancing Responsiveness to Clients and Funding Agents in Nonprofit Social Service Organizations

University of Kansas, Lawrence, kleroux{at}ku.edu

Nonprofit social service organizations face unique challenges in attending to the needs of their various stakeholders. This article uses data from a sample of nonprofit organizations in Michigan to examine how well nonprofits manage multiple stakeholder demands. Findings indicate that nonprofits generally balance organizational time and attention to the needs of both clients and funding agencies. However, a small percentage of nonprofits devote disproportionate time to funding agencies at the expense of client-related activities. Factors that increase this likelihood include financial dependence on for-profit corporations, a racial mismatch between the board and agency clientele, and board dominance by economic elites.

Key Words: nonprofit governance • accountability • responsiveness • nonprofit stakeholders • resource dependence

Administration & Society, Vol. 41, No. 2, 158-184 (2009)
DOI: 10.1177/0095399709332298


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