How Do Government Grants Affect Nonprofit Financial Effectiveness? The Mediation Role of Process Accountability

Jeongyoon Lee, Young Joo Park, Xi Gong

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

This study examines the role of process accountability in the association between government grants and nonprofit financial effectiveness. Using the Internal Revenue Service Form 990 from 2013 to 2017, our mediation analyses find that government grants make nonprofits accountable for their processes. However, process accountability can reduce nonprofit financial effectiveness and suppress the positive relationship between government grants and nonprofit financial effectiveness. We uncover the underlying mechanism by which government grants affect nonprofit financial efficacy and suggest that too much emphasis on process accountability may hamper the benefits of government support of nonprofit service provision and financial effectiveness.

Original languageEnglish
Pages (from-to)122-157
Number of pages36
JournalAdministration and Society
Volume55
Issue number1
DOIs
StatePublished - Jan 2023

Bibliographical note

Publisher Copyright:
© The Author(s) 2022.

Keywords

  • financial effectiveness
  • government grants
  • nonprofit-government relationship
  • process accountability

ASJC Scopus subject areas

  • Sociology and Political Science
  • Public Administration
  • Marketing

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