Legitimacy, Strategy, and Resources in the Survival of Community-Based Organizations

Organizations active in mobilizing low- and moderate-income communities make considerable efforts to combat inequalities and build voice for citizens, despite inherent challenges of obtaining resources, maintaining member interest, and retaining staff. How, then, do such groups remain viable—even thriving—organizations? Building upon research on organizational theory and social movements, we examine patterns of survival among a sample of community-based organizations (CBOs) between 1990 and 2004, thus providing the first systematic study of their long-term mortality processes. More specifically, we test how organizations' sociopolitical legitimacy and resources (and strategies for cultivating both) influence survival, finding that the legitimacy of organizations in low-income areas is a double-edged sword, as embeddedness in resource-deprived local environments confers both benefits and disadvantages. In particular, we find the strongest support for the notion that, beyond the considerable effects of externally obtained resources, CBOs also benefit considerably by engaging in even a small amount of grassroots fundraising. Further, although we find significant effects of extra-local legitimacy in the baseline models—through organizations' affiliation with national or regional organizing networks—we find evidence in additional analyses that the survival benefits of network affiliation are largely mediated by resources. We also find sizable but marginally significant effects of local legitimacy, and significant positive effects of organizational age and urban location. Overall, our findings suggest that although cultivating resources is the surest path to survival, organizations that build their legitimacy will be in a better position to compensate for structural resource deficits.