On NFPs with high social impact that avoid concentrating on a few activities [version 2; peer review: 2 approved]
Background: An influential piece of literature on effective altruism insists that not-for-profit organizations (NFPs) should concentrate their investments on a few activities to maximize their social return on investment (SROI) ratio. However, this creates greater risk for an NFP than building a por...
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| Format: | Article |
| Language: | English |
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F1000 Research Ltd
2023-10-01
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| Series: | F1000Research |
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| Online Access: | https://f1000research.com/articles/11-964/v2 |
| _version_ | 1827367581286137856 |
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| author | Fuminobu Mizutani |
| author_facet | Fuminobu Mizutani |
| author_sort | Fuminobu Mizutani |
| collection | DOAJ |
| description | Background: An influential piece of literature on effective altruism insists that not-for-profit organizations (NFPs) should concentrate their investments on a few activities to maximize their social return on investment (SROI) ratio. However, this creates greater risk for an NFP than building a portfolio of investments in activities. This study investigates whether it is desirable for executives and contributors of NFPs to build a portfolio rather than maximize the expected SROI ratio, and if so, how to build one. Solving these questions will help the chief financial officers (CFOs) of NFPs, who serve as their agents, fulfill their obligations to contributors, who are their principals, and will help advisors provide better services for their contributors, their clients. Methods: Data were collected from a ranking of NFPs, then non-parametric tests were performed on this ranking and the Herfindahl-Hirschman Index (HHI). Results: The HHI are between 2013 and 2688. The results of non-parametric tests do not deny that rank and HHI are independent of each other. Most of the NFPs’ investments in activities were in accord with their core competencies. Conclusions: It was found that successful executives build portfolios. The findings of this study should be sufficiently practical in helping NFP executives and contributors decide whether to build portfolios, and if so, how. |
| first_indexed | 2024-03-08T09:09:29Z |
| format | Article |
| id | doaj.art-959932045ad54912a1e249f9cf55cb34 |
| institution | Directory Open Access Journal |
| issn | 2046-1402 |
| language | English |
| last_indexed | 2024-03-08T09:09:29Z |
| publishDate | 2023-10-01 |
| publisher | F1000 Research Ltd |
| record_format | Article |
| series | F1000Research |
| spelling | doaj.art-959932045ad54912a1e249f9cf55cb342024-02-01T01:00:02ZengF1000 Research LtdF1000Research2046-14022023-10-0111157875On NFPs with high social impact that avoid concentrating on a few activities [version 2; peer review: 2 approved]Fuminobu Mizutani0https://orcid.org/0000-0003-1306-8891Department of Business Administration, Kanto Gakuin University, Yokohama, 2310016, JapanBackground: An influential piece of literature on effective altruism insists that not-for-profit organizations (NFPs) should concentrate their investments on a few activities to maximize their social return on investment (SROI) ratio. However, this creates greater risk for an NFP than building a portfolio of investments in activities. This study investigates whether it is desirable for executives and contributors of NFPs to build a portfolio rather than maximize the expected SROI ratio, and if so, how to build one. Solving these questions will help the chief financial officers (CFOs) of NFPs, who serve as their agents, fulfill their obligations to contributors, who are their principals, and will help advisors provide better services for their contributors, their clients. Methods: Data were collected from a ranking of NFPs, then non-parametric tests were performed on this ranking and the Herfindahl-Hirschman Index (HHI). Results: The HHI are between 2013 and 2688. The results of non-parametric tests do not deny that rank and HHI are independent of each other. Most of the NFPs’ investments in activities were in accord with their core competencies. Conclusions: It was found that successful executives build portfolios. The findings of this study should be sufficiently practical in helping NFP executives and contributors decide whether to build portfolios, and if so, how.https://f1000research.com/articles/11-964/v2Portfolio NFP SROI HHI Non-parametric test Core competencyeng |
| spellingShingle | Fuminobu Mizutani On NFPs with high social impact that avoid concentrating on a few activities [version 2; peer review: 2 approved] F1000Research Portfolio NFP SROI HHI Non-parametric test Core competency eng |
| title | On NFPs with high social impact that avoid concentrating on a few activities [version 2; peer review: 2 approved] |
| title_full | On NFPs with high social impact that avoid concentrating on a few activities [version 2; peer review: 2 approved] |
| title_fullStr | On NFPs with high social impact that avoid concentrating on a few activities [version 2; peer review: 2 approved] |
| title_full_unstemmed | On NFPs with high social impact that avoid concentrating on a few activities [version 2; peer review: 2 approved] |
| title_short | On NFPs with high social impact that avoid concentrating on a few activities [version 2; peer review: 2 approved] |
| title_sort | on nfps with high social impact that avoid concentrating on a few activities version 2 peer review 2 approved |
| topic | Portfolio NFP SROI HHI Non-parametric test Core competency eng |
| url | https://f1000research.com/articles/11-964/v2 |
| work_keys_str_mv | AT fuminobumizutani onnfpswithhighsocialimpactthatavoidconcentratingonafewactivitiesversion2peerreview2approved |