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Understanding the Need for Legitimacy in Nonprofits: Insights from Siobhán McGee's Masterclass

Join us for a thought-provoking masterclass presented by Siobhán McGee on the essential role legitimacy plays in the nonprofit sector. Set for March 8, 2004, this session aims to challenge traditional perspectives, leaving participants with more questions than answers. Explore the concept of legitimacy as a societal perception and its implications for nonprofits in gaining support and credibility. The discussion will cover stakeholder dynamics, the balance of power, and the critical choices managers face in establishing legitimacy amidst competing interests.

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Understanding the Need for Legitimacy in Nonprofits: Insights from Siobhán McGee's Masterclass

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Presentation Transcript

  1. Why is Legitimacy necessary? ‘Resourcing Nonprofits’ Master Class Monday 8th March 2004 Presented by Siobhán McGee

  2. Outcome of sessionto leave you with more questions than you have nowor……to leave you confused on a higher plane

  3. Legitimacy ‘A generalised perception or assumption that the actions of an entity are desirable, proper or appropriate within some socially constructed system of norms, values, beliefs and definitions’ Suchman, 1995: 574

  4. Legitimacy Process of Justification Need/cause is deemed legitimate and appropriate for the society. Alignment / Congruence with values and Process of Conformity ‘Right to exist’, fit within society – credibility (endorsers, board, implied by media coverage)

  5. Legitimacy • How do we choose whom we support? • Awareness • Alignment with core values • Accessibility • Focus – can’t do everything

  6. 7 + or - 2

  7. Short Cuts Similar to meeting a person for the first time… 30 seconds Based on further exposure we may review original opinion

  8. Why NFPs need Legitimacy Once ‘accepted’… • Generally little direct interaction with NFP • Communication mainly controlled by NFP • Decision rarely reviewed until need to take action arises

  9. Why NFPs need Legitimacy It’s a licence to trade based on • Institutional acceptability • Perceived competence to deliver

  10. Short Cuts? Which charity is more deserving of support? • Charity A - 90% administration costs 10% on ‘the cause’ • Charity B - 10% administration costs 90% on ‘the cause’

  11. Leveraging Legitimacy • Legitimacy = Resources = ?Accountability Four Cs of influence/power • Cash – donors (public/government) • Clout – board/patrons/media/opinion leaders (i.e. Geldof, Bono) / Academics • Connections– board/patrons/management • Class – (intellect) board/management/staff

  12. Relative Power of Stakeholders • Governments • Corporations • Public • Beneficiaries

  13. Dilemmas/Choices for Managers • Managing the balance between stakeholders needs… • Fyffes/Fair Trade • Nestle/IFRC

  14. Dilemmas/Choices for Managers Politics and Power NFPs deliver government policy – can they challenge the government? • One in Four • An Taisce / Carrickmines Castle

  15. Dilemmas/Choices for Managers Use of celebrities e.g. Jordan ? Legitimate or too high risk?

  16. So what do we do with it? Marketing vs. Legitimacy - is it legitimate if exploitative images are used in ads? Shocking images can gain attention, but is it sustainable or a turn-off?

  17. Brand as representation of Legitimacy Protecting/Growing/Developing the brand? • Trócaire: Working for a just world… • Lifeboats

  18. More questions than answers… Charity A or Charity B Is it the right question? Still an easy choice to make?

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