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Nonprofit Administration and Management Commons

Open Access. Powered by Scholars. Published by Universities.®

1996

Chicago-Kent College of Law

Articles 1 - 2 of 2

Full-Text Articles in Nonprofit Administration and Management

Agents Without Principals: The Economic Convergence Of The Nonprofit And For-Profit Organizational Forms, Evelyn Brody Mar 1996

Agents Without Principals: The Economic Convergence Of The Nonprofit And For-Profit Organizational Forms, Evelyn Brody

Evelyn Brody

Are nonprofit organizations 'different' from firms with owners? The accepted economic account holds that nonprofits are more trustworthy than business firms because nonprofits cannot distribute profits to owners. However, all firms, nonprofit or proprietary, have converged into similar patterns of behavior. Firms, whether nonprofit or proprietary (or even public), are subject to many of the same economic forces, such as resource dependency, institutional isomorphism, and organizational slack. Even in the absence of shareholders somebody still has to run the enterprise: to decide what objectives to pursue, and how; to manage its financial and human resources; and to span the boundaries …


Institutional Dissonance In The Nonprofit Sector, Evelyn Brody Mar 1996

Institutional Dissonance In The Nonprofit Sector, Evelyn Brody

Evelyn Brody

Our political and economic system contains three seemingly distinct sectors: public, proprietary, and nonprofit. This division masks serious issues of who should provide welfare services, schooling and health care; who should build infrastructure; who should control private wealth. The nonprofit law takes a laissez faire approach to permissible nonprofit activities, leading many to lament the increasing 'commercialization' of the nonprofit sector. However, an examination of historical as well as current activities engaged in by firms in all three sectors reveals that the basis terms of the social debate are eternal, while institutions dominant at different times and in different places …