The Unintended Consequences of Female Leadership in the Nonprofit Sector

• In Event: Donors and Nonprofit Financial Reporting

Abstract

In this study we investigate whether there is gender bias in donors’ contributions to nonprofit organizations. First, using a determinants model, we identify firms that are more likely to have a female CEO. Then, in a matched sample, we test whether nonprofits with female CEOs receive fewer donations than their male counterparts. Using a sample of over 15,000 firm-year industry diverse organizations, we find that nonprofits with female CEOs are less complex, better governed, and more fiscally responsible. Intuitively, one would expect these positive attributes to be rewarded through more donations. However, consistent with for-profit gender effect literature, we find that nonprofit donors penalize female CEOs in the form of fewer donations. Further, this effect is exacerbated when female CEOs have multiple roles. We posit this gender bias is an unintended consequence of female leadership in the non-profit sector.

Authors

• Veena Looknanan Brown, University of Wisconsin-Milwaukee

• Erica Harris, Villanova University