Semester

Spring

Date of Graduation

2025

Document Type

Dissertation

Degree Type

DBA

College

Chambers College of Business and Economics

Department

Accounting

Committee Chair

Ludwig Christian Schaupp

Committee Co-Chair

Daniel D. Bonneau

Committee Member

Daniel D. Bonneau

Committee Member

Jack Dorminey

Committee Member

Vivek Singh

Abstract

This research examines the relationship between nonprofit overhead ratios and performance, specifically focusing on United Way affiliates. The study analyzes Form 990 data from 2010 to 2022, employing fixed effect regression models to examine the potential circular relationship between overhead spending and total revenue. The findings suggest that while current overhead rates are positively correlated with revenue, they may yield diminishing returns. Furthermore, population subgroups are examined by assets, overhead rate, and revenues spectrums to provide more nuanced insight. Interestingly, while not statistically significant within the overall population, increases in overhead rates may positively or negatively impact subsequent year revenue at statistically significant levels for subgroups. Directionally opposite coefficients were found at opposing ends of these subgroup spectrums suggesting a nonmonotonic relationship. This analysis also highlights the need for more suitable modeling to consider revenue as independent variable. Collectively, these findings largely corroborate existing theory and challenge the prevailing notion that overhead spending detracts from nonprofit performance. In expanding upon relatively limited empirical evidence, this study contributes to the discourse on nonprofit financial management, offering insights that could inform both managerial practices and future research methodologies within the sector.

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