ASSET MANAGEMENT OF INDEPENDENT MISSION AGENCIES (NONPROFIT CHARITABLE ORGANIZATIONS, MANAGEMENT, FINANCIAL, RELIGIOUS)

The purpose of this study is to analyze the financial management practices of independent (non-denominational) religious foreign mission agencies. The transferability of business practices and techniques associated with the shareholder wealth maximization model of corporate finance theory is assessed. This is followed by an empirical evaluation of the implementation of these business practices in mission agencies, which are organized as nonprofit organizations.;Statistical analysis was performed to test several hypotheses. First, significance tests of differences in proportions were conducted to ascertain whether independent mission agencies employed financial techniques to a greater or lesser extent than businesses. In most cases, technique utilization was significantly less for mission agencies. Second, chi-square tests and probit regression analysis were carried out to find the relationship between technique utilization and independent variables such as the business education of the financial administrator and the size and age of the agency. For many key financial practices, knowledge of these three independent variables would enable a correct prediction for seventy percent or more of in-sample agencies.;A phone survey of the member agencies of the Interdenominational Foreign Missions Association was conducted. Each of forty-seven agencies was asked questions in the areas of organizational objectives, working capital management, fixed asset management, financial investments, financial planning and control, and fund raising management. The questionnaire was directed to the chief financial administrator of the agency.