Volunteer-managed nonprofit organizations (VNPOs) are defined as nonprofit organizations managed exclusively by volunteers without paid-staff. There is no well-recognized theory describing how to govern or structure VNPOs, despite their significance in the social economy. This study argues non-bureaucratic governance and non-hierarchical structures are appropriate for some VNPOs. Rothschild-Whitt (1979) proposes six significant challenges for organizations with non-bureaucratic governance. Using multiple case-study methodology, the magnitude of these challenges was assessed in three VNPOs adopting non-bureaucratic governance and non-hierarchical structure. Four challenges, namely, time, homogeneity, emotional intensity, and individual differences, did not adversely affect the selected VNPOs. Two challenges, namely, nondemocratic individuals and environmental constraints, remained obstacles for the selected VNPOs. Five other challenges to non-bureaucratic governance specific to VNPOs were also identified and discussed, specifically, succession planning and recruitment, task completion, minimal socialization, pressure to achieve consensus, and administrative issues. Insights from such studies may help to better manage non-bureaucratic/non-hierarchical VNPOs.

Volunteer-managed nonprofit organizations (VNPOs) are defined as nonprofit organizations managed exclusively by volunteers without paid-staff. There is no well-recognized theory describing how to govern or structure VNPOs, despite their significance in the social economy. This study argues non-bureaucratic governance and non-hierarchical structures are appropriate for some VNPOs. Rothschild-Whitt (1979) proposes six significant challenges for organizations with non-bureaucratic governance. Using multiple case-study methodology, the magnitude of these challenges was assessed in three VNPOs adopting non-bureaucratic governance and non-hierarchical structure. Four challenges, namely, time, homogeneity, emotional intensity, and individual differences, did not adversely affect the selected VNPOs. Two challenges, namely, nondemocratic individuals and environmental constraints, remained obstacles for the selected VNPOs. Five other challenges to non-bureaucratic governance specific to VNPOs were also identified and discussed, specifically, succession planning and recruitment, task completion, minimal socialization, pressure to achieve consensus, and administrative issues. Insights from such studies may help to better manage non-bureaucratic/non-hierarchical VNPOs.