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Transient-member nonprofits, nonprofit finance
This paper reports on an examination of membership nonprofits whose members are committed for a relatively short period—“transient-member nonprofits.” These organizations are pressured to attend to the current membership and long-term projects are difficult to plan, execute, and finance. While a number of organizational types are transient-member nonprofits, youth sports organizations, are an archetype.
This paper’s exploratory study sought to determine how such organizations’ transient characteristics appeared in their financial reports. It considered whether transient-member nonprofits report different profits, net assets, and liabilities when compared to more dedicated nonprofits. Transient-member nonprofits report lower net assets than do other nonprofits. An analysis of the degree to which organizations are transient found that the most transient organizations tend to have significantly lower net assets and liabilities. However, organizations that are relatively more transient do not report lower annual profits than other organizations.
The Journal of Contemporary Business Issues