Nonprofit quality: What is it and why should nonprofits care?

This manuscript examines a quality‐oriented philosophy in a nonprofit context utilizing semi‐structured interviews with nonprofit executive directors. The findings indicate that nonprofit organizations do seek continuous improvement and value a long‐term focus, consistent with for‐profit quality aspirations. However, factors unique to the structure of nonprofit organizations exist and contribute to organizational quality. The interviews converged to highlight five areas that relate to organizational quality in nonprofit organizations: donor relationships, organizational transparency, board member involvement, talent recruitment, and employee commitment. The findings indicate that a quality‐oriented approach to nonprofit governance affects an organization's ability to secure funding and address the mission of the respective organization more efficiently and effectively. Thus, it is suggested that incorporating a quality‐oriented philosophy creates a competitive advantage for nonprofit organizations in an increasingly saturated market.