Bridging Disciplinary Boundaries (January 11 - 14, 2007)

Purpose: Nonprofits provide the social structures in neighborhoods that create opportunities for bonding and trust building among residents. Thus, it is critical that we understand how organizational structure, program development tactics and readiness are linked with growth so that we can facilitate the development of potential strategies for capacity building and sustainability of these organizations in the future. The primary goals of this research are to: 1) investigate specific aspects of organizational theory using a sample of small to mid-sized nonprofits, including grassroots organizations; 2) to use a structural equation approach as the basis for examining the relationship between program development and growth; and 3) to examine the role readiness plays in predicting both program development and positive organizational growth in these small to medium sized non-profits. Methods: Surveys were administered to a purposive sample of urban grassroots organizations (n=396) through multiple data collections strategies. Organizations were contacted though electronic mail, web-based surveys, onsite recruitment at community events, telephone and mail surveys. The survey contained a wide range of constructs, including management capacity, fund development capacity, program development capacity, readiness, staffing capacity, and growth. Structural equation modeling was used to test our hypothesis. Model 1 examined the relationship between program development and growth without the inclusion of readiness as a predictor variable whereas Model 2 included readiness as a predictor variable for both program development and growth. Results: Our findings indicate 1) that critical distinctions may exist small and mid-sized nonprofits compared with larger nonprofits; 2) that management capacity, fund development capacity, age of agency and readiness were strong predictors of the level of program development. The R2 was .423 for Model 1 and.557 for Model 2; 3) that nonprofits who conducted needs assessment, searched for information on best practices, and engaged in program planning and evaluation were more likely to have higher reported levels of growth; and 4) that higher levels of readiness were associated with higher levels of program development capacity and growth. The correlation between readiness and program development was .411, while the total combined correlation between readiness and growth was .211. Implications: These findings suggest that knowledge gained from the experience of large nonprofits cannot be transferred without caution and limitations to the experiences of small and midsize nonprofits. Program development capacity, as an important predictor of growth, may be may be an important point of departure for community social workers who seek to build capacity among these nonprofits. Finally, we should pay closer attention to incorporating readiness as a way to build on the investment made within nonprofit organizations.