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Nonprofit organizations (NPOs) are significant contributors culturally, socially, and economically, but little research has focused on their response to organizational crises. Research has been quickly documenting impacts of the COVID-19 crisis on different sectors, but again less so for NPOs. This is significant because research and recommendations developed in one sector (such as for-profit corporations) may not translate to others (such as NPOs). NPOs are particularly vulnerable, due to their dependence on public financial support and demands on their resources during crises. We report on a unique and unfortunate opportunity to assess response dynamics from a half year before (2019) and a half year after (2020) the beginning of the COVID-19 pandemic in the United States. We draw on a unique dataset combining surveys at two points in time, Twitter use data, and financial information, from 578 NPOs to develop a general model (grounded in the discourse of renewal theory) of five sources of influence (communication, organizational resources, crisis experience, crisis management, crisis impacts) on three types of strategic responses by nonprofits (retrenchment, persevering, and innovating) to COVID-19. Higher levels of communication, crisis experience, and crisis management all predicted greater tendencies for persevering and innovating in response to COVID-19. The implications for research and practice include extending crisis communication research to the nonprofit sector and demonstrating how NPOs can strengthen themselves to recover from COVID-19 or the next crisis.
Fuller et al. (Mon,) studied this question.