Non-Profit Organizations as a Nexus Between Government and Business : Evidence From Chinese Charities

Non‐profit organizations in emerging markets frequently have to manage relations with governments and for‐profit firms. We advance a multi‐stakeholder perspective and develop propositions about how the political ties of charities influence their success in raising funds from corporate donors. Evidence from 2,054 Chinese charities during 2005‐2012 shows that organizational political ties, established through formal affiliation with the government, aid fundraising from corporate donors, whereas personal political ties, formed through personal political services of senior leaders of charities, have no such effect. The positive effect of government affiliation is relevant for both foreign and domestic donors, but stronger for domestic ones. These results highlight the differential impact and contingent value of political embeddedness for charities' ability to acquire resources from for‐profit business, contributing to both stakeholder theory and the political embeddedness perspective