Disentangling the Financial Vulnerability of Nonprofits
Bibliographic Data
| ID | 12250175 |
|---|---|
| Authors | Pablo Andrés (0000-0001-7219-9707, corresponding author), Pablo de Andres-Alonso, Íñigo García-Rodriguez (0000-0003-2662-8018), M Elena Romero‐Merino (0000-0003-0920-4950) |
| Year | 2016 |
| Volume | 27 |
| Issue | 6 |
| Pages | 2539-2560 |
| Publication date | 2016-07-21 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Voluntas Revista Internacional de Filosofia (JOURNAL) |
| Journal identifiers | ISSN: 2179-3786 • E-ISSN: 1573-7888 |
| Publisher | Springer Science+Business Media (PUBLISHER • DE) |
| DOI | 10.1007/s11266-016-9764-6 |
| OpenAlex | W2484826370 |
| Language | EN |
| Citations received | 3 |
| References cited | 18 |
This research analyzes the concept of financial vulnerability of nonprofits in depth. We review the definitions given by the prior literature, concluding that none of them is complete. We propose a definition in which financial vulnerability consists of three dimensions: operational (variation of net assets over time), leverage (relationship between total assets and debt), and liquidity (ratio of current assets to short-term debt). We use a sample of 212 Non-Governmental Development Organizations (NGDOs) from the United Kingdom to analyze these measures, observing a limited number of nonprofits simultaneously classified as vulnerable according to the different traditional concepts. Applying our proposed multidimensional model, we find that 6 % of the sample is highly financially vulnerable according to the three dimensions, and a high proportion (18 %) of nonprofits is simultaneously vulnerable in leverage and liquidity dimensions. Finally, we compare the obtained results using traditional variables and those derived from our model
Actuarial science · Business · Debt · Debt ratio · Economics · Leverage (statistics · Market liquidity · Sample (material · Statistics · Vulnerability (computing · Community Development and Social Impact · Computer Science · Mathematics · Microfinance and Financial Inclusion · Nonprofit Sector and Volunteering · Finance
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2020 - 2025 (6) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 3 |