The first research project examines the practice of unrestricted funding. In a multi-method study, we examine the following research question: What are the effects of restrictions on funding practices on the effectiveness of grantee organizations?
We focus on nonprofit effectiveness, which is a term used across disciplines, with various conceptual definitions and operationalizations. Most scholars agree that this is a multidimensional concept. Jesse D. Lecy and colleagues show that there are various notions of effectiveness that emerge from the literature, including: organizational efficiency, managerial effectiveness, board effectiveness, and effective use of partnerships and networks. We define grantee effectiveness in line with Benjamin and Campbell as “The extent to which an organization has achieved its goals”.
When studying nonprofit effectiveness, it is important to include the perspectives of all organizational and individual stakeholders. These stakeholders include –among others- clients or end-beneficiaries, boards of directors and employees, different types of funders (state, corporations, philanthropy), licensing and accreditation bodies and vendors.
Nonprofit effectiveness is also largely contingent upon the context in which it is studied. Relevant outcomes may be different across organizations that differ in size, sector and mission.