Structural Embeddedness and the Liability of Newness Among Nonprofit Organizations
Mark A. Hager, Joseph Galaskiewicz, and Jeff A. Larson, writing in 2004 for Public Management Review, examine the circumstances that lead newer nonprofit organizations to close down more frequently than longer-established ones:
We find that larger organizations and organizations more dependent upon private donations are less likely to close, and government funding reduces the age effect on mortality; that is, older and younger publicly funded organizations are equally likely to survive or fail. However, among older organizations, not having government funding increases chances of survival. In contrast, volunteer staffing accentuates the age effect. Older organizations that were more dependent on volunteers had a lower likelihood of closure than younger organizations dependent on volunteers, while age had no effect on closure for organizations not dependent on volunteers.
