FOUNDERS, EXTERNAL FUNDERS, AND GOVERNANCE MODELS OF NEWLY FOUNDED NONPROFIT SOCIAL SERVICE ORGANIZATIONS: EVIDENCE FROM THE SAHEL REGION OF TUNISIA

Abstract

Governance is a challenging task in nonprofit organizations. Previous research has focused on established and professionalized nonprofit entities but ignored the governance configurations of newly founded nonprofit organizations. As mentioned by many scholars, these newly founded nonprofits face the liability of newness and are under from pressure of internal and external stakeholders. To fill this research gap, this paper examines the different governance models of the newly founded nonprofit organizations. More precisely, an exploratory study was conducted based on a sample of twenty-four new nonprofit social service organizations in the Sahel region of Tunisia. The findings reveal that there are four main governance models based on the relative power of founding board members and external funders. Researchers can use this typology to determine the different configurations of power distribution in the newly founded nonprofit social service organizations. Also, practitioners can benefit from this typology to determine the specific factors that may affect internal decision-making in these organizations. In contrast to previous studies, this research shows the value of taking a broad view of governance that does not focus solely on the board. In addition, this article sheds light on the possible governance challenges facing nonprofit founding board chairs by highlighting the conflicts that may arise between them, external funders, and the other founding board members.