Managing Nonprofit Organizations: The Importance of Transformational Leadership and Commitment to Operating Standards for Nonprofit Accountability

Abstract

Using survey methodology and telephone interviews, this exploratory study proposes a framework for nonprofit leaders to promote accountability in their organizations, an important goal for both management and performance in the nonprofit sector. The study relies on Brody's (2001) four-part construct of organizational accountability (fiscal responsibility, good governance, adherence to mission, and program effectiveness) to examine the issue of promoting accountability in nonprofit organizations. We hypothesize that higher levels of nonprofit accountability are related to higher levels of an organization's commitment to operating standards and to higher levels of transformational leadership as exhibited by the organization's leader. Study results indicate that both predictor variables are positively and significantly related to nonprofit accountability, with transformational leadership being the stronger indicator of accountability. The findings of the study have significant implications for nonprofit managers and for nonprofit organizational performance.