The Association of Female Leaders with Donations and Operating Margin in Nonprofit Organizations

Veena L. Brown () and Erica E. Harris ()
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Veena L. Brown: University of Wisconsin-Milwaukee
Erica E. Harris: Florida International University

Journal of Business Ethics, 2023, vol. 185, issue 1, No 12, 223-243

Abstract: Abstract We examine the impact of employing a female, versus a male, leader on future (t + 1) donations and operating margin using a sample of 4387 unique nonprofit organizations (NPOs) between 2011 and 2014. Using two-stage and matched sample designs, we find that NPOs headed by female leaders report higher future operating margins but lower future donations. We interpret these findings to mean that female leaders are more focused on fiscal responsibility than fundraising. We also find that female leaders with past fundraising experience attenuate lower future donations, and at commercial nonprofits, female leaders with prior for-profit experience contribute to even higher operating margins. Moreover, while female leaders identified as the founder of the organization increase future donations, they have no effect on future operating margins. Collectively, the results of our study should increase nonprofit boards’ confidence in hiring female leaders thereby narrowing the gender disparity in leadership in the nonprofit sector. This study expands the extant literature by providing initial evidence on the effects of female leaders in NPOs thereby contributing to research exploring gender, diversity, management, and nonprofit executives.

Keywords: Gender; CEO; Donation; Female; Fiscal responsibility; Fundraising; Women; Nonprofit; Operations (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10551-022-05182-2

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