Not-for-profit organizations play a critical role in the American
economy. In health care, education, culture, and religion, we trust
not-for-profit firms to serve the interests of their donors,
customers, employees, and society at large. We know that such firms
don't try to maximize profits, but what do they maximize?
This book attempts to answer that question, assembling leading
experts on the economics of the not-for-profit sector to examine
the problems of the health care industry, art museums,
universities, and even the medieval church. Contributors look at a
number of different aspects of not-for-profit operations, from the
problems of fundraising, endowments, and governance to specific
issues like hospital advertising.
The picture that emerges is complex and surprising. In some cases,
not-for-profit firms appear to work extremely well: competition for
workers, customers, and donors leads not-for-profit organizations
to function as efficiently as any for-profit firm. In other
contexts, large endowments and weak governance allow elite workers
to maximize their own interests, rather than those of their donors,
customers, or society at large.
Taken together, these papers greatly advance our knowledge of the
dynamics and operations of not-for-profit organizations, revealing
the underexplored systems of pressures and challenges that shape
their governance.
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