Multivariate Analysis of Voluntary Health and Welfare Organization Financial Performance Measures

Abstract

This investigation seeks to ascertain if the three factor model used by Ritchie and Kolodinsky (2003) for hospital foundations applies similarly for a different nonprofit sector of Voluntary Health and Welfare Organizations (VHWO’s) regarding financial performance categories derived from the Internal Revenue Service Form 990, or if a four factor model is more appropriate. 301 data sets obtained from GuideStar were evaluated using principal component analysis, and ultimately with confirmatory factor analysis using IBM AMOS Version 23.0 software. The results demonstrated that the higher order CFA three factor Ritchie and Kolodinsky (2003) model did fit to evaluate VHWOs.