Who Determines How Nonprofits Confront Uncertainty?

This study examines the impact of managers, board members, beneficiaries, donors, and government entities on nonprofit strategic decisions. Using data collected from GuideStar, the National Center for Charitable Statistics, and surveys, we provide evidence that strategic decisions of nonprofits are shaped by the ability of the aforementioned stakeholders to diversify their interests. Our findings offer nonprofits another means by which they can understand and therefore manage their strategic decisions. In addition, our framework suggests future applications of stakeholder theory conceive of stakeholder salience as a bidirectional phenomenon.