Nonprofit Businesses in the 1990s: Models for Success Gordon Dabbs Research is needed into the special aspects of communi- cation involving non- profit associations. A tidal wave of organizations is roaring across the social, political, and educa- tional landscape of America. These small, resilient enterprises are called "associa- tions." Also known as nonprofits, not-for- profits, foundations, and tax-exempts, their impact on our nation has been nothing short of astounding. Organizational researchers should take notice of these growing businesses and evaluate their unique communication needs. Researchers and consultants have spent a great deal of time analyzing the culture and com- munication surrounding businesses in the last 20 years. It is now important for us to focus atten- tion on nonprofit associations. The reason for the new focus is clear. Oleck (1988) commented, "Far more Americans now participate in the activities of nonprofit organiza- tions than in those of profit-seeking organiza- tions. About half of the organizations and enter- prises in the United States are now nonprofit in nature." Cun'ently, there are nearly one million of these organizations in the United States. The nu- merical significance of nonprofits can not be disputed. Nonprofit organizations are considered to be those businesses that do not directly seek to fi- nancially enrich members, management, or asso- ciates. Typically they promote education, health care, religion, or other benevolent goals. Money that these organizations earn is usually circulated back into the association's charitable programs (Hunter 1980; Kotler 1982). Representative of nonprofit associations are the American Associa- tion for Retired People (AARP), the United Way, the National Education Association (NEA), and the Speech Communication Association (SCA). The economic weight of these organizations is staggering. Annual expenditures of nonprofits exceeded $130 billion in recent years, and the budgets of philanthropic organizations in America are greater than those of any single nation except the United States, Great Britain, Japan, France, and Germany. Politically and socially, these groups now exercise tremendous strength. The impact of nonprofits that lobby and influence governmental decisions is felt across the United States. Experts conclude that the expansion of these organizations, in numbers and strength, will con- tinue throughout this decade. Oleck (1988) con- tends that nonprofit business is a "growth" field. Others see noteworthy expansion of the non- profit economic foundation (Olson 1989; Zaltman 1979). From almost any perspective, the nonprofit will be an important area of study in the 1990s. For communication students, it is a novel strain of organization that affects traditional organiza- tional communication theories in ways that are not discernible through analysis of profit-seeking businesses. This article provides an abstract of nonprofit communication and offers issues for researchers to examine further. Organizational Properties of Nonprofits The management of an association is that group of individuals that directs and administers the guiding principles of the organization. Most nonprofits have a board of directors (trustees) that, combined with the officers of the organiza- tion, directs its functions. The qualifications of nonprofit managers are somewhat different from those of normal busi- nesses. Whereas profit-seeking organizations look for people to boost the margin of profit, non- 68 Business Horizons/ September-October 1991