The Study of Nonprofit Management: The Relationship between Information and Communication Technology Adoption and Financial Viability of Nonprofit Organizations

Abstract

The financial viability of nonprofit organizations (NPOs) is a significant factor in keeping the organizations afloat and in their making an impact on society. This study aims to explore the relationship between information and communication technology (ICT) adoption and the financial viability of nonprofits. The results reveal that ICT adoption (i.e., basic information technology infrastructure and use) has a positive impact on the nonprofit financial viability factor of donation and transfer funds. In addition, the extent of internet use and the presence of an organizational website positively influence the profit-making measurement indicator of return on assets (ROA). The research finding also suggests that NPOs’ managers should consider invest in ICT to ensure that their organizations can maintain their financial viability so as to provide their services and make an impact on society.