Financial factors that influence the size of nonprofit operating reserves
Bibliographic Data
| ID | 20201893 |
|---|---|
| Authors | Cleopatra Grizzle (Rutgers, the State University of New Jersey), Margaret F Sloan (0000-0002-4561-6648, James Madison University), Mirae Kim (0000-0002-4680-9812, University of Missouri) |
| Year | 2015 |
| Volume | 27 |
| Issue | 1 |
| Pages | 67-97 |
| Publication date | 2015-03-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Public Budgeting Accounting & Financial Management (JOURNAL) |
| Journal identifiers | ISSN: 1096-3367 • E-ISSN: 1945-1814 |
| Publisher | Emerald (PUBLISHER) |
| DOI | 10.1108/jpbafm-27-01-2015-b003 |
| OpenAlex | W2803307681 |
| Language | EN |
| Citations received | 1 |
| References cited | 30 |
Although operating reserves can aid nonprofit organizations in alleviating periods of fiscal stress, they are not widely used. This study examines organizational factors that impact the level of operating reserves in nonprofit organizations. It also explores the relationship of operating reserves with organizational demographics and financial health variables using a six-year (1998-2003) unbalanced panel regression model containing 460,437 observations. Findings demonstrate a positive relationship between operating reserves and administration ratio, profit margin, operating margin, and organization age. Conversely, the size of operating reserves is negatively related to leverage ratio, donations, and organization size. Revenue diversification, however, shows a mixed relationship with operating reserves among different types of nonprofit indicating complexity in risk-reducing strategy. This study contributes to understanding factors relevant to the presence, or absence, of nonprofit operating reserves
Business · Demographics · Earnings before interest and taxes · Economics · Monetary economics · Operating budget · Operating expense · Operating leverage · Operating margin · Operating model · Profitability index · Return on assets · Revenue · Community Development and Social Impact · Nonprofit Sector and Volunteering · Religion, Society, and Development · Finance · Marketing
| Citations per year | 0.33 |
|---|---|
| Citation span | 2023 - 2023 (1) |
| Highly cited | No |