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Article 1
How Tough Are Better Business Bureau/Wise Giving Alliance Financial Standards? 
Bhattacharya, R., Tinkelman, D. (2009) 
Nonprofit and Voluntary Sector Quarterly, 38: 467-489.

Discussion Questions

• What accounts for the creation of private “watchdog” organizations? How have these organizations impacted nonprofit organizations?
• Discuss the common methods watchdog organizations use to determine financial efficiency. Are these methods effective? Why or why not?
• List and discuss the four standards in the BBB guidelines related to the “Use of funds.”
• Should nonprofit organizations seek and obtain “accreditation” with these watchdog organizations? Why or why not?

 

Article 2 
Can Resource Dependence and Coercive Isomorphism Explain Nonprofit Organizations’ Compliance with Reporting Standards? 
Verbruggen, S., Christiaens, J., Milis, K. (2011)
Nonprofit and Voluntary Sector Quarterly, 40: 5-32.

Discussion Questions

• What issues have contributed to the increase in the need for financial reporting standards?
• Discuss the two broad approaches to defining the quality of accounting and financial reporting.
• Define the term “coercive isomorphism” and discuss its implications in resource dependency.
• What are the most common methods for financial reporting compliance for nonprofits?
• Discuss characteristics of a nonprofit that might make it more likely to comply with financial reporting.

 

Article 3 
Sarbanes-Oxley and the New Form 990: Are Arts and Culture Nonprofits Ready? 
Benzing, C., Leach, E., McGee, C. (2011) 
Nonprofit and Voluntary Sector Quarterly, 40: 1132-1147.

Discussion Questions

• Describe the circumstances that led to the 2002 passage of Sarbanes-Oxley (SOX) and discuss the implications for nonprofit organizations.
• Discuss the requirements that are included in the New Form 990.
• How does the New Form 990 describe an “audit committee” including the composition of that committee?
• Describe the whistle-blowing protections that are required by SOX.
• What is the relationship between the size of nonprofits and their financial practices? Are they more or less likely to comply with SOX? Why or why not?

 

Article 4
The Accumulation of Nonprofit Profits: A Dynamic Analysis. 
Calabrese, T. (2012) 
Nonprofit and Voluntary Sector Quarterly, 4(2): 300-324. 

Discussion Questions

• Define the term “profit” and discuss how it applies to nonprofit organizations (NPOs) that are considered to be “nonprofit.”
• NPOs can accumulate unrestricted net assets. Discuss how they must be used to maintain 501 (c) (3) status with the Internal Revenue Service.
• Discuss the difference between “restricted net assets” and “unrestricted net assets.”
• Define the term “endowment” and discuss the implications of this type of funding for nonprofit organizations.
• Describe the circumstances that lead to the use of unrestricted net assets by NPOs.

 

Article 5 
Two Approaches to Nonprofit Financial Ratios and the Implications for Managerial Incentives 
Eckerd, A. (2015) 
Nonprofit and Voluntary Sector Quarterly, 44(3): 437–456. 

Discussion Questions

• According to the article author, what is the relationship between the charity watchdogs the Better Business Bureau (BBB) Wise Giving Alliance and the Charity Navigators? How do their evaluation standards differ?
• What are the three expense ratios used by the Better Business Bureau?

 

Article 6
Fiscal Leanness and Fiscal Responsiveness: Exploring the Normative Limits of Strategic Nonprofit Financial  Management 
Mitchell, G. (2015) 
Administration & Society, 0095399715581035, pp. 1–25.

Discussion Question

• What did the author describe as one of the most important features of a nonprofit’s economic environment? What is the mathematical formula used to determine this feature?
• What did Mitchell’s study of the application of lean practices to fundraising efforts reveal?