Evaluation in Nonprofit Organizations: An Empirical Analysis

Many factors influence the extent to which nonprofit organizations engage in evaluation. Drawing on organization theory, nonprofit scholarship, and public administration research, we propose a set of hypotheses concerning the interrelationships between organizational characteristics and various aspects of nonprofit evaluation. We test these hypotheses using combined data from an original national survey and IRS Forms 990. Analysis reveals that although higher levels of staff compensation support many aspects of evaluation, higher levels of executive compensation exert negative effects. Additionally, evaluation culture mediates the effects of several variables on evaluation rigor and frequency. Practical implications are discussed for scholars and practitioners.