Dissertation Proposal Defense Announcement by Crystal Trull

Location

Mother Rosalie Hill Hall, 127

Cost

0

NONPROFIT GOVERNANCE FIDUCIARY OVERSIGHT AND SOCIAL ENTERPRISE: A COMPARATIVE STUDY

by Crystal Trull

Abstract

     Nonprofit leaders of today are faced with meeting increased demands for services, declines in public support, and pressures from funders to become more entrepreneurial and to diversify revenues (Froelich, 2009). As a means to diversify revenues, nonprofits generate resources through earned income activities such as government contracts, charging admission, and membership. However, despite these efforts, nonprofits still struggle to cover the full costs associated with fulfilling their missions and are moving toward entrepreneurial activities such as social enterprise (SE) (Bromley & Meyer, 2014; Dart, 2004). Characterized as a commercially-based, entrepreneurial approach to social issues, SE is the sale of goods and services for a market-rate payment (Dacin, Dacin, & Matear, 2010; Peredo & McLean, 2006). SE is a means to cover the full costs of producing goods and services and may be more appealing to nonprofits over traditional earned income activities. Likewise, SE satisfies funders who pressure nonprofits to develop innovative, self sustaining strategies to fulfill mission.
      As appealing as SE may be, it creates a number of challenges for nonprofit organizations, specifically related to their legal form. Historically, nonprofits emerged to meet the needs of society that the government and the market could not. Furthermore, nonprofits are subject to the U.S. tax code which offers tax-exempt status in return for a commitment to a charitable role. As such, SE may create conflicts between the traditional charitable purpose and the growing commercial activities of today’s nonprofit sector.
      This descriptive quantitative study explores nonprofit leaders’ knowledge of their fiduciary duties in the context of SE. By utilizing a newly developed survey assessment tool, based on IRS federal regulations for tax exemption, boards of directors and executive staff will be surveyed. Using SE as a sub-sector, the sample will include a minimum of 25 nonprofits that self identify as operating a SE program and a minimum of 25 nonprofits that do not. Findings will provide insight into levels of board governance awareness and produce an assessment tool to support further research.

*Note: Dissertation proposal defense is open to current USD faculty, graduate students, and staff.