Prediction of Financial Vulnerability to Funding Instability

Gila Burde, Ahron Rosenfeld, Zachary Sheaffer

Research output: Contribution to journalArticlepeer-review


Financial vulnerability of nonprofit organizations arising from governmental funding instability is examined using hazard analysis. Funding instability is characterized by time-at-risk, and vulnerability is expressed by hazard rate measuring the speed of nonprofit organizations closure. The analysis provides estimation of instantaneous probability of a nonprofit organization failure at a given point in time. Drawing on 2,660 Israeli nonprofit organizations, we found that the relationship between hazard rate and time-at-risk has an inverted U–shape curve; hazard rate increases with time-at-risk, reaches a maximum then descends.

Original languageEnglish
Pages (from-to)280-304
Number of pages25
JournalNonprofit and Voluntary Sector Quarterly
Issue number2
StatePublished - 1 Apr 2017
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2016, © The Author(s) 2016.


  • financial vulnerability
  • government grants
  • hazard rate
  • nonprofit
  • prediction
  • risk

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)


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