Nonprofits’ Organizational Practices and Their Contributions to Communities and Democracy

In today’s democratic malaise, characterized by decreasing voter turnouts and party memberships and by landslide victories of populists of any kind, nonprofit organizations (NPOs) are sometimes perceived as beacons of hope. One of their societal roles is to serve as schools of citizenship and democracy. Being involved as members, volunteers, employees, or beneficiaries of NPOs is associated with a greater willingness and capability to advocate for their interests and contribute to community building. However, these roles may be threatened by NPOs’ tendency to rationalize and professionalize their management. Therefore, we ask the following research questions: How are NPOs’ societal roles shaped by their organizational practices? How does NPOs’ use of management and democratic practices relate to their endorsement of public participation? To answer these questions, we analyze survey data from a random sample of NPOs in the Vienna metropolitan region and use structural equation modeling. Previously, debates about business-like approaches endangering NPOs’ democratic functions have mostly been based on conceptual arguments and qualitative data. With our quantitative evidence, we present ideas that point in a different direction: Both kinds of organizational practices—managerial and democratic—relate positively with NPOs’ emphasis on their democratic and political functions.