Community health centers (CHCs) under environmental uncertainty: An examination of the Affordable Care act of 2010 and early Medicaid expansion on CHC margin

Nonprofit community health centers (CHCs) are the largest subset of safety net clinics in the United States and, in many vulnerable and underserved areas, act as the only provider of vital health services in the community. The expansion of Medicaid provision under the Affordable Care Act of 2010 led to a fundamental change in the core client demographics of CHCs, with higher income thresholds and single childless individuals now eligible for Medicaid. This expansion of the Medicaid population creates both opportunities and threats that may impact CHCs' long term financial sustainability. Accumulating reserves through positive net margins is a managerial tactic that nonprofits can utilize to buffer against environmental uncertainty. This study utilizes data from IRS Form 990s, American Community Survey, HRSA grantee lists, and the Area Resource File to model the differences in net margins between CHCs in early Medicaid expansion and non-expansion states from 2008-2012. Results show higher margins for CHCs in early expansion states compared to non-expansion states, even after accounting for organizational and environmental covariates. CHCs who are HRSA grantees are associated with positive margins whereas those relying more heavily on program revenue show negative margins. Further, CHCs located in counties with higher percentages of persons in poverty also demonstrate reduced margins. This exploratory study contributes to the nonprofit finance literature by highlighting the importance of incorporating contextual variables to deepen our understanding of changes in nonprofit financial health

The influence of lobbying activity in state legislatures: Evidence from Wisconsin

This study attempts to assess the degree of influence interest groups can exert on the state policy process, specifically via their lobbying activities. The analysis uses data from the 2005-06 Wisconsin Legislative Session to assess the association between lobbying activity and legislative outcomes in one state legislature. The study finds a direct association between lobbying activities and bill outcomes, while also exploring the potential influences of both key political actors and public attention. Public attention is found to reduce the effects of lobbying efforts, suggesting that lobbying is most effective when focused on less salient issues

Applying cooperative biological theory to nonprofit collaboration

For centuries, designers and engineers have looked to the natural world for inspiration in an effort innovate

Organized interests and administrative rulemaking: The state of Wisconsin's lobbyists and coalitions

This study examines interest groups undertaking lobbying activity focused on administrative rulemaking. The analysis utilizes a dataset composed of observations made during the 2009-2010 Wisconsin Legislative Session, including the entire population of groups lobbying during this time period. This research examines the participants, efforts, and coalitions utilized when groups engaged in lobbying activity related to rulemaking. Although scholars have examined interest group activity focused on rulemaking at the federal level, little work has focused on this behavior in the states. This study aims to further the understanding of this activity

To Lobby or Not to Lobby? Examining the Determinants of Nonprofit Organizations Taking the IRS 501(h) Election

While public policy scholars are gaining a better understanding of the nonprofit sector's impact on the policy process, the sector's role in lobbying efforts has only been studied in a limited manner. Currently, nonprofit organizations' lobbying activities and expenditures are limited by federal regulations, which are often misunderstood by nonprofit leaders. This article uses 2003 IRS Form 990 data for all nonprofit organizations in the United States to examine the organizational determinants of 501(c)3 nonprofits taking the Internal Revenue Service's 501(h) election and whether organizations use h-election in a manner consistent with patterns of strategic behavior. Results show that nonprofit organizations that are reliant on direct public support are more likely to take the h-election, while those reliant on government grants are less likely to take the h-election. Examining lobbying expenditures, we find nonprofits associate with 501(h) election in a pattern consistent with strategic behavior. The findings suggest that nonprofit organizations with certain revenue streams and in specific subsectors respond differently to this election decision, and that organizations may respond strategically to mechanisms regulating their political activity

Perceptions of Privatization in Michigan

This paper examines the attitudes of elected local officials toward the use of privatization of public services by local governments. We examined a number of factors to see whether they are significantly associated with elected officials’ attitude toward privatization as a method of cost savings and service delivery. The survey examined the elected officials’ perception of community support for privatization, the perception that the private sector is more efficient with regard to both cost and quality of service delivery, the perception that administrators faithfully carry out policy, the relationship to general revenue sharing dollars, and the type of city

Modern Portfolio Theory and Nonprofit Arts Organizations: Identifying the Efficient Frontier

This study examines the revenue structures of nonprofit organizations in the arts subsector to identify theoretically ideal revenue portfolios by examining the risk, return, and covariance of revenue streams. This article examines four major sources of revenue for arts organizations and builds on Kingma’s work on nonprofit revenue portfolios by carrying out the theoretical modeling suggested in his seminal work. Beyond identifying the efficient frontier, this approach can also reveal the composition of theoretically efficient portfolios found along the frontier. These portfolios are optimal in that they maximize revenue growth and minimize variability. This study has practical implications for the understanding of revenue diversification in the nonprofit sector, which has been identified as one mechanism by which nonprofit organizations can mitigate risk an

Perceptions of council member-department head interactions in local government

In this article, we use data collected from municipal council members and department heads in Michigan municipalities with over 10000 residents to determine how, and why, they view the quality of their interactions with one another. Building theories of small group dynamics and political control of bureaucracy, we test several hypotheses and conclude that council members and department heads hold divergent views of their interactions with one another and that their views are determined by government form and community characteristics. We conclude with simple steps that local government officials and administrators can take to improve their small group dynamics and governing performance