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The Survival of Nonprofits in the United States

Henson, James (2014): The Survival of Nonprofits in the United States.

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Abstract

The ability of publicly available tax information to determine the survival of nonprofit organizations is analyzed. Survival analysis estimates the predictive power and hazard ratios of several financial variables. The tax information comes from the National Center for Charitable Statistics (NCCS) 1998-2003 data on nonprofit organizations. The data includes 110,758 total organization and 1,857 failed organizations. The results show assets and return on assets had the greatest effect on survival time. The variables for equity ratio, months of spending, markup, and liquidity were not shown to have a clear and significant impact on survival time in nonprofits.

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