caa a22 4500 606151869 CHVBK 20210128100546.0 cr unu---uuuuu 210128e20151201xx s 000 0 eng 10.1007/s11266-014-9523-5 doi (NATIONALLICENCE)springer-10.1007/s11266-014-9523-5 Nonprofit Financial Vulnerability: Testing Competing Models, Recommended Improvements, and Implications [Elektronische Daten] [Ettie Tevel, Hagai Katz, David Brock] We examine the predictive validity of existing models used by researchers and by professional rating agencies of nonprofit organizations to assess financial vulnerability, on a sample of performing arts organizations. The models tested include Ohlson's (J Account Res 18(1):31-109, 1980) "business” model, Tuckman and Chang's "nonprofit” model (Nonprofit Volunt Sect Q 20:445-460, 1991), and a "practitioner” model based on the guidelines of two nonprofit ranking and rating agencies (Copps and Vernon, The little blue book, NPC's guide to analyzing charities, for charities and funders. New Philanthropy Capital, London, 2010; Midot, Midot guide for effectiveness. Midot—Analyzing and Rating NPOs. Tel Aviv, 2013). Since there is considerable criticism over the effectiveness of existing models in predicting financial distress, we propose that a new model is needed which can improve our ability to predict financial vulnerability. The findings reveal that the Tuckman and Chang model provides the best prediction of financial vulnerability; and a reduced version offers an even better prediction. Implications for financial management and particularly for revenue diversification, increased overhead costs (particularly management costs), and surplus accumulation are discussed. International Society for Third-Sector Research and The Johns Hopkins University, 2014 Financial vulnerability nationallicence Nonprofit nationallicence Revenue diversification nationallicence Overhead nationallicence Asset surplus nationallicence Tevel Ettie Department of Business Administration, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, POB 653, 84105, Beersheba, Israel aut Katz Hagai Department of Business Administration, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, POB 653, 84105, Beersheba, Israel aut Brock David Department of Business Administration, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, POB 653, 84105, Beersheba, Israel aut VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations Springer US; http://www.springer-ny.com 26/6(2015-12-01), 2500-2516 0957-8765 26:6<2500 2015 26 11266 https://doi.org/10.1007/s11266-014-9523-5 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s11266-014-9523-5 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Tevel Ettie Department of Business Administration, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, POB 653, 84105, Beersheba, Israel aut NATIONALLICENCE 700 1- Katz Hagai Department of Business Administration, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, POB 653, 84105, Beersheba, Israel aut NATIONALLICENCE 700 1- Brock David Department of Business Administration, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, POB 653, 84105, Beersheba, Israel aut NATIONALLICENCE 773 0- VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations Springer US; http://www.springer-ny.com 26/6(2015-12-01), 2500-2516 0957-8765 26:6<2500 2015 26 11266