{"title":"NONPROFIT FINANCIAL VULNERABILITY: A TEST OF THE TUCKMAN-CHANG MODEL USING THE GREAT RECESSION","authors":"Alesha Graves, David Tucker","doi":"10.18374/rbr-23-1.1","DOIUrl":null,"url":null,"abstract":"ABSTRACT In 1991, Tuckman and Chang published the seminal work on the financial vulnerability of nonprofit organizations and presented a model that describes financially vulnerable non-profit organizations. Subsequent studies utilizing this model indicate that the model is predictive; however, those studies did not utilize an actual financial shock. Using binary logistic regression, this study tests the predictive ability of the Tuckman-Chang model by applying it to charitable organizations that survived and did not survive the Great Recession of 2007-09. Results of the testing indicate that the Tuckman-Chang model can be used to accurately predict if a charitable organization can survive a financial shock. Keywords charitable organizations, non-profit organizations, not-for-profit, financial vulnerability, Great Recession","PeriodicalId":318730,"journal":{"name":"Review of business research","volume":"31 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2023-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of business research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.18374/rbr-23-1.1","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
ABSTRACT In 1991, Tuckman and Chang published the seminal work on the financial vulnerability of nonprofit organizations and presented a model that describes financially vulnerable non-profit organizations. Subsequent studies utilizing this model indicate that the model is predictive; however, those studies did not utilize an actual financial shock. Using binary logistic regression, this study tests the predictive ability of the Tuckman-Chang model by applying it to charitable organizations that survived and did not survive the Great Recession of 2007-09. Results of the testing indicate that the Tuckman-Chang model can be used to accurately predict if a charitable organization can survive a financial shock. Keywords charitable organizations, non-profit organizations, not-for-profit, financial vulnerability, Great Recession