Handy, Femida
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Publication When to Use Volunteer Labor Resources? An Organizational Analysis for Nonprofit Management(2007-03-01) Handy, Femida; Brudney, Jeffrey LVolunteer labor is commonly used to produce many goods and services in our economy. Many studies examine the supply of volunteer labor and determine why and how individuals give their time without remuneration (Freeman, 1997; Menchik, & Weisbrod, 1987; Smith, 1994; Vaillancourt & Payette, 1986). Fewer studies examine the demand for and the use of volunteer labor by organizations that receive it (Emanuele, 1996; Handy & Srinivasan, 2005). However, not surprisingly there exists a strong demand for volunteer labor; given it’s relatively low cost and individuals willing to supply unpaid labor. For example, 93% of volunteers are engaged by 161,000 nonprofit organizations (NPOs) in Canada (Statistics Canada, 2004 b). In the United States, a national study found 80% of charities use volunteers (Hager, 2004).Publication The Moral High Ground: Differentials Among Executive Directors of Canadian Nonprofits(2007-01-01) Handy, Femida; Mook, Laurie; Ginieniewicz, Jorge; Quarter, JackThere is a considerable literature, albeit inconclusive, on whether workers in the nonprofit sector are paid less than their counterparts in the private and public sectors. For example, a large national study in the U.S. showed positive and negative differentials for some occupations and industries, but no systematic differences that are sector wide (Leete, 2000). Other studies targeted to specific sub-sectors are mixed in their results: many support these negative wage differentials and others do not (Bond, Raehl, & Pitterle, 1999; Naci Mocan & Tekin, 2003; Naci Mocan & Viola, 1997; Preston, 1989; Shahpoori & Smith, 2005). In comparing the wages offered by for-profit firms and nonprofit organizations, it is helpful to note at the outset that nonprofits often have greater financial restraints than their counterparts in the for-profit sector and, hence, may offer lower wages. But the reverse may also be possible: for-profit firms that are subject to market discipline and responsibility to shareholders may have less scope to offer higher wages to workers. Thus it is not evident, prima facia, whether nonprofits or for-profits, would offer higher wages. Despite the lack of unambiguous evidence for negative wage differentials, nonprofit workers often perceive themselves as underpaid compared to their counterparts in other sectors. A recent survey conducted by the Brookings Institution (Light, 2003) found that nearly half of all paid nonprofit workers in the human services believe they could make more money elsewhere, but they see themselves as driven by mission not money. Another survey reported that current nonprofit executives across all sectors in the U.S. believe that they could have made more money working in another sector (Bell, Moyers, & Wolfred, 2006). Career counsellors and executive placement centres publicize the negative wage differential. For example, a prestigious business school in the U.S. offers financial aid to those students choosing to work in the nonprofit sector because "students are interested in public service careers, but their educational debt burden may inhibit them from pursuing these jobs since they tend to provide lower compensation than the for-profit sector" (Almanac, 2005, p. 2). Perpetuating the perception of lower wages are several leading websites focused on nonprofit employment. They explicitly inform individuals searching for employment that nonprofit salaries are lower than in other sectors on average. Lynda Ford, a human-resources consultant, maintains that nonprofits offer lower salaries because they compensate employees by creating a good work environment (Klineman, 2004). Furthermore, the hue and cry in the media about some excessive nonprofit salaries has given rise to a tendency to lower executive salaries in the nonprofit sector. In the last few years, federal agencies in the U.S. and Canada are also paying greater attention and giving more scrutiny to executive compensation in the nonprofit sector. Against this background, in this research we examine the perceptions of executive directors in Canadian nonprofits regarding wage differentials in the nonprofit sector compared to the for-profit sector. These perceptions, especially concerning their own wages, are important because it is in this context that executive directors make choices about where to work. This, in turn, determines the managerial labor supply for the sector. We first present a brief review of the theoretical explanations offered by scholars for wage differentials. We then turn to the empirical findings on wage differentials before presenting our findings.Publication Financial Inclusion: Lessons From Rural South India(2012-01-01) Cnaan, Ram A; Handy, Femida; Moodithaya, M. SFinancial inclusion/exclusion has recently been emphasised as an important policy option aimed at alleviating poverty, minimising social exclusion and enhancing economic growth. In this article, we review the growing interest in financial exclusion and inclusion, define them and demonstrate their existence in developing and developed countries. Our empirical focus is on whether financial inclusion has been successfully implemented in four sites in rural South India where banks claimed that financial inclusion is complete. Although many rural people in South India are financially included, the concept of financial inclusion is more complex than usually portrayed. Our findings show that social and personal deprivation contributes to financial exclusion and should be viewed as key barriers to financial inclusion. We also suggest that financial inclusion is not a monolithic phenomenon and should be studied in a multi-layered fashion, ranging from having a bank account to making full use of modern financial instruments.Publication Individual and Organizational Factors in the Interchangeability of Paid Staff and Volunteers: Perspectives of Volunteers(2014-01-01) Mook, Laurie; Farrell, Eddie; Chum, Anthony; Handy, Femida; Schugurensky, Daniel; Quarter, JackThis study builds upon earlier studies of the degree of interchangeability between volunteers and paid staff in nonprofit organizations. While these earlier studies were from an organization perspective, this study is from the perspective of volunteers, and looks at individual and organizational characteristics in all types of organizations—nonprofits, for-profits, government agencies, and others. The findings indicate that 10.8% of volunteers reported replacing a paid staff member, 3.1% permanently. Volunteers also reported being replaced by paid staff: 7.6% reported being replaced, 2.1% permanently. The study suggests that organizations utilize a co-production model and appear to interchange their paid staff and volunteers when needed in tasks requiring higher-level skills.Publication The Role of Social Anxiety in Volunteering(2007-09-01) Handy, Femida; Cnaan, Ram AThe volunteer management literature suggests that the most effective means of recruitment is personal asking. However, agencies that apply this method do not report the expected success in volunteer recruitment. Often they face the volunteer recruitment fallacy: those people assumed to be interested in volunteering do not necessarily volunteer. Based on the literature of shyness or social anxiety and on empirical observations, this article suggests that social anxiety often deters volunteering by new recruits. We hypothesize that people with greater levels of social anxiety will be less likely to volunteer. Furthermore, we hypothesize that people with high social anxiety will prefer to give monetary support to worthy causes rather than volunteer their time, and if they do choose to volunteer, they will do so alongside friends. Our hypotheses are supported based on the findings from a large-scale nonrandom sample in North America. We suggest how to avoid the volunteer recruitment fallacy by creating a personal environment in which high-social-anxiety recruits feel safe and accepted. By removing the fear of being negatively judged by strangers as they enter the agency and creating a more personal approach, new recruits may have a higher probability of becoming long-term and consistent volunteers.Publication To profit or not to profit: Women entrepreneurs in India(2007-06-06) Handy, Femida; Ranade, Bhagyashree; Kassam, MeenazEntrepreneurial activity attracts certain kinds of individuals, whether it is to promote a social cause in the nonprofit sector or profit in the for-profit sector. This article looks at the behavior of women entrepreneurs in India in both the for-profit and nonprofit sectors to test for potential differences and similarities. We chose two groups of entrepreneurial women who founded and led relatively similar-size organizations in the same city and who provided services primarily to women and children. Our findings show that while all nonprofit entrepreneurs receive a high payoff from promoting social causes, there is no single unifying payoff for for-profit entrepreneurs. Family background and support, however, play an important role for both sets of entrepreneurs. We find that experience in the sector, social class, caste, and education influence entrepreneurial behavior and that this influence differs by sector.Publication Reporting Volunteer Labour at the Organizational Level: A Study of Canadian Nonprofits(2007-03-01) Mook, Laurie; Handy, Femida; Quarter, JackVolunteer contributions in the production of services are an important resource internationally. However, few countries include volunteer contributions in their national accounts, even though many encourage their populations to engage in volunteering. At the organizational level, many nonprofit organizations using volunteers often limit their input to a footnote in annual reports acknowledging their contribution; few estimate their value in financial terms. As a result, their financial accounts lack information upon which to base decisions affecting the organizations and the communities they serve. Additional information is required to assess the impact of volunteers in individual nonprofits as well as the sector as a whole. This study focuses on Canada, one of the few countries that include volunteers in the national accounts, to examine to what extent nonprofit organizations estimate a financial value for these contributions and include this in their financial statements. This paper reports the results of an online survey of 661 nonprofits from across Canada. In order to understand why some organizations keep records for volunteer contributions and quantify them, two sets of explanatory factors are explored: organizational characteristics and the attitude of the executive director. We find larger organizations were more likely to engage in record keeping and estimating volunteer value, as were organizations with a relatively large group of volunteers and volunteer programs. The attitude of the executive director is important in determining which organizations engage in these practices.Publication Advocacy by environmental nonprofit organizations: An optimal strategy for addressing environmental problems?(2001-01-01) Handy, FemidaSeveral policy alternatives exist to protect environmental quality. Environmental nonprofits advocating for better environmental quality must often choose what policies to advocate and support. This article argues that environmental nonprofits will do best by designing strategies of advocacy contingent on the net costs to the stakeholders and paying attention to the crowding-out effects of monetary incentives. It investigates the advocacy policies of 50 environmental organizations in Canada. The findings of this survey show that although reduction of net costs is espoused, market-based policies are not generally advocated, while a greater emphasis is put on regulatory approaches combined with moral suasion through the dissemination of information and educational programs.Publication Factors Influencing Women Entrepreneurs of NGOs in India(2003-07-01) Handy, Femida; Kassam, Meenaz; Ranade, ShreeThis article examines women entrepreneurs in the nonprofit sector. Entrepreneurial activity attracts certain kinds of individuals. Such self-selection is not a random event but is influenced by personal characteristics as well as socioeconomic and cultural factors. This article examines women entrepreneurs in a particular segment of the nonprofit sector in India to determine which factors influence such self-selection. Our research confirms findings by other scholars that nonprofit entrepreneurs receive a high payoff from promoting social causes. Furthermore, we find that previous experience in the sector, beliefs, culture, social class, education, and family background also play an important role. We explore some policy implications of our findings.Publication Public Perception of "Who is a Volunteer": An Examination of the Net-cost Approach from a Cross-Cultural Perspective(2000-03-01) Handy, Femida; Cnaan, Ram A; Brudney, Jeffrey L; Ascoli, Ugo; Meijs, Lucas C; Ranade, ShreeVolunteers are the cornerstones on which the voluntary sector is predicated. We are accustomed to using this phrase in every aspect of our lives, yet too little systematic work has been carried out to define this term in a rigorous and precise manner. Volunteering is the essence of the scholarly work of numerous academicians around the world, however there are many issues that arise when people report their own volunteering or attempt to define the term volunteer. No clear-cut definition that encompasses all aspects of volunteering exists. Often too many different activities and situations are aggregated into this concept (Cnaan, Handy, & Wadsworth, 1996; Scheier, 1980; Smith, 1995; Tremper, Seidman, & Tufts, 1994; Vineyard, 1993).