Relation and Strategy: The Impact of NPO-Funder Relationship on Organisational Sustainable Development in China

• In Event: Civil society and philanthropy

Abstract

How to maintain sustainable funding has been a constant topic for nonprofits. As one of many types of nonprofit organizations (NPOs), social service nonprofits (SSNs) seek to maintain funding from various stakeholders, including individual donors, the government, private corporations, and foundations. In China, decentralization has arguably led SSNs to serve as meditating institutions under the purview of government-nonprofit service contracts to facilitate local-level social governance. However, akin to nonprofits elsewhere, acquiring and maintaining cooperation and funding support from other stakeholders have been challenging for SSNs.

Earlier studies concerning Chinese nonprofit-funder management either focused on NGO-government contractual relationships or relations with other sources, including private contributions, corporations, and foundations. However, given the multitude and diversity of funding sources, few studies have examined the nuances of SSNs’ funder relationship management or examined how the different relationships between SSNs and their multiple funders impact organizational financial sustainability.

To this end, this study explores how social service nonprofits in China manage their relations with multiple funders to achieve organizational financial sustainability, with the sub-questions: (1) What are the different NPO-funder relationships and management strategies among social service nonprofits to achieve organizational financial sustainability? (2) How do Chinese SSNs strategize to manage the relationships with funders to achieve organizational financial sustainability?

Drawing upon the Relationship Management Theory, this mixed-method study combines a quantitative study based on the China Social Work Longitudinal Study (CSWLS 2019 Baseline) and a comparative case analysis of 20 social service nonprofits to explore the similarities and differences among Chinese SSNs in their management of funder relations.

This research contributes to nonprofit scholarship in several significant ways. Theoretically, findings contribute to the third-sector scholarship about funder relationship management. In terms of practice, this study offers insights for both social service nonprofits and their funders to meet financial and organizational needs. Lastly, findings shed light on nonprofit administrative management, policy design, and making, planning of corporate social responsibility, and the advocacy of public fundraising within the social service sector in and beyond China.

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Author

• SHIQI PENG, The University of Hong Kong