Accountability Standards for Nonprofit Organizations: Do Organizations Benefit from Certification Programs?

• In Event: Hot Buffet Breakfast & Round Table Discussions
  In Paper Session: Round Table Discussions

Abstract

This paper examines the impact of acquiring an accountability certification, specifically the Standard for Excellence Certification®, for nonprofit organizations. Using a sample of 128 nonprofit organizations that have received the Standards for Excellence certification and their size and industry matched peer, we find that certified nonprofit organizations have experienced significant increases in total revenue and direct public support. In addition, we find that the Standards for Excellence certification process leads to higher program spending in the certified organizations. Our results provide evidence that some stakeholders favorably respond to the certification process and the certified organizations display tangible benefits from receiving the Standards for Excellence certification. The findings help stakeholders of nonprofit organizations and academia to assess the value of third party accountability certifications.

Authors

• Nancy Chun Feng, Suffolk University

• Daniel Gordon Neely, University of Wisconsin–Milwaukee

• Lise Anne Slatten, University of Louisiana at Lafayette