Introduction

In the current context of social and economic instability, where the consequences of the COVID-19 pandemic crisis lead us to organizational scenarios characterized by unpredictability, non-profit associations (NPOs) are increasingly challenged to provide social responses, following their missions, given that the public and private sectors are unable to perform with the diligence desired by society. Studies that allow us to understand the performance and dynamics of these organizations become increasingly relevant (Oliveira et al., 2021) since, for a long time, the management of this type of organization has not attached great importance to the factors that can influence their management, without jeopardizing the fulfilment of their missions and the values under which they are governed (Hudson, 2017). In this context, the financial performance of these associations is increasingly decisive since it should be the guarantor of the continuity of action of these institutions. In this sense, this study aimed to verify how different management perspectives of these institutions, such as strategic management, governance, human resource management, and social responses, can affect their financial performance. Therefore, this research aims to increase knowledge about the influentials of financial performance in NPOs to understand which organizational factors can effectively contribute to their management and sustainability.

Thus, this study focuses on Portuguese NPOs, in the specific case of Holy Houses of Mercies in Portugal, aims to verify the influence of financial management and governance practices in social services promoted by the Holy Houses of Mercy in Portugal.

Literature Review

After the 2007/8 financial crisis, the economic slowdown brought a greater demand for services provided by NPOs (Cronley & Kim, 2014; Hackler & Saxton, 2007). In some cases, demand arises from regular customers who request additional or different services than those traditionally provided by the organization (Akingbola, 2006; Crittenden, 2000), for which there is simply not enough supply. Others report demand from underserved populations but often face challenges in acquiring the resources or assets needed to expand existing coverage (Pietroburgo & Wernet, 2004). Based on organizational effectiveness (Schneider, 2009; Schnurbein, 2014), NPOs are important agents in the creation of social value (Wollebæk & Selle, 2007), playing an important key in promoting democratic stability and economic growth, considering the norms they are based, trust and share (von Schnurbein, Perez, & Gehringer, 2018) and principles, such as solidarity, cooperation and equity, they cultivate, and that is legally established (Enes, 2013; Law of the Bases of Social Economic, Law 30/2013). NPOs are usually raised in social movements, promoting civic empowerment and democratic values (Anheier & Seibel, 2013), and they are usually associated with the social well-being, integrating institutions that promote the charity, the humanism and the scientific and educational values (Oliveira, Sousa, Silva, & Santos, 2021).

Nowadays, these organizations face the challenge of fulfilling their social mission, guaranteeing economic and financial sustainability (Dall'Agnol, Tondolo, Tondolo, & Sarquis, 2017). This complex challenge implies defining strategies and practices that permit to maintain and/or improve the efficiency of the resources and, also, to provide better existing and new services to their beneficiaries (Bryce, 2017; Lee, 2010; Santos, Laureano & Machado, 2014; Santos & Soeiro De Carvalho, 2018; Su, Nuryyev, Aimable & others, 2014).

Strategic Management

NPOs are highly dependent on their external environment and vulnerable to factors such as financial shocks, rapid technological changes and pressure from stack stakeholders (Bryson, 2018; Froelich, 1999; Miller, 2018). Strategic management can help non-profit organizations not only to manage and respond to environmental change, promoting an improvement in the organization's interaction with the outside (Hafsi & Thomas, 2005), but also to improve organizational decision making, allowing a better performance (Black, Hinrichs, & Fabian, 2007; Mara, 2000; Osterwalder & Pigneur, 2010). According to Miller (2018), the use of strategic formulation in NPOs is positively associated with higher performance levels, reflected in the organization's growth, financial reporting, resource acquisition, efficiency and customer service. An aspect still little studied and used in the strategic management of NPOs is the cooperation between organizations, which may result in the improvement of the financial performance of those involved. Working in cooperation, these organizations will be able to obtain numerous advantages, among which the capacity to obtain subsidies, to obtain high volume contracts that they would have difficulty reaching in isolation, to acquire new clients/users and to carry out joint campaigns in the media (Basinger & Peterson, 2008).

Governance

The governance of NPOs is a complex task as their leaders should guarantee the organization's social mission, promote its sufficiency and sustainability, and ensure transparency and accountability for stakeholders (Woerrlein & Scheck, 2016). In fact, to promote their sustainability, NPOs have adopted managerial procedures similar to practices and values related to private organizations (Cornforth, 2014; Eikenberry & Kluver, 2004). In this sense, they have been subject to "marketization" and have adopted "some approaches, such as commercial revenue generation, contract competition, or social entrepreneurship" (von Schnurbein et al., 2018).

Several authors (Bukhari, Jabeen, & Jadoon, 2014; Cabral De Ávila & Bertero, 2016; Cruz, Quandt, Martins, & da Silva, 2010; da Silveira & Borba, 2010; Garcia, 2016; Saltaji, 2013; Taylor, 2015) reveal that governance assumes a great deal of influence in the fulfilment of the social mission to which the organization proposes itself, pointing out that in order to ensure good governance the organization's Strategy must be aligned with the organization's mission and objectives. The adoption of governance practices will allow NPOs to improve their financial capacity, capturing customers, partners, and financiers more efficiently while guaranteeing the fulfillment of their objectives and facing the multiple challenges they are subjected to daily.

Framed in attracting funding sources, the study by (Miller, 2018) concludes that financiers/investors attach high importance to the organization's performance indicators when making decisions for selecting projects or institutions to support. On the other hand, the research carried out by (Greiling & Stötzer, 2015) reveals that NPOs understand the relevance of responsibility for performance in protecting financial resources. In a study applied to hospitals, (Marlin, Geiger, & Ritchie, 2013) note that these institutions understand the importance of the "strategic imperative" (p. 427) for philanthropic donations. Still, some authors (Larsen & Brockington, 2018; Smith, Binns & Tushman, 2010; Weerawardena, McDonald, & Mort, 2010) argue that NPOs leaders sometimes neglect the social mission for which the institutions were created in favour of their medium and long-term financial sustainability.

Human Resources Management

The determinants of NPOs management have evolved beyond the eminently financial perspective, including aspects related to the external environment, the professionalization of HR and the ability to adapt to customer needs (Miller, 2018).

Concerning the management of NPOs Human Resources, some evidence suggests that the efforts and performance of employees specifically lead to an increase in the organisation's financial performance (Brown & Iverson, 2004) and the successful implementation of the Strategy (Sheehan Jr, 1999). In this sense, it is necessary to empower NPOs leaders and managers with resources and skills that allow them to rationally assess the organization's financial sources and prepare rigorous financial projections that allow NPOs to review needs and provide the necessary resources in greater detail and as few deviations as possible (Crittenden, 2000).

A particular characteristic associated with NPOs is the free or low level of wags, below the market value (Collins, 2005), and high volunteering presence (Payne, Mize Smith, Everson, & Newman Iv, 2019). Even so, several authors have been defending the need for more significant investment in the training, qualification and marketing of volunteering, framing it in the human resources management policies of the NPOs (Amaro, Quintela & others, 2002; Pimenta, 2011; Serapioni, Ferreira & Lima, 2013).

Social Service Practices

The financial sustainability of NPOs is directly related to their ability to carry out their mission. According to (Su et al., 2014), organizations with better financial and sustainable performance will be able to assist a greater number of people and achieve their goals.

However, customer/beneficiaries' preferences should not be neglected. We found studies like that of (Stone, Bigelow & Crittenden, 1999), which refer to the strong emphasis on management and financing, leaving the needs of the customer/beneficiaries relegated to second place.

Therefore, NPOs leaders and managers must use management tools to successfully interact with and in the environment in which they are integrated and have internal conditions to fulfill their missions.

Hypothesis

Hypothesis 1 (H1): Strategic management influences positively the financial management of non-profit organizations.

Hypothesis 2 (H2): The governance influences positively the financial management of non-profit organizations.

Hypothesis 3 (H3): Human resources management influences positively the financial management of non-profit organizations.

Hypothesis 4 (H4): The social service practices influence the financial management of non-profit organizations positively.

Methodology

Sample

In order to achieve the objective proposed in this article, an exploratory, quantitative research using a questionnaire survey instrument to understand and analyse the influence of Human Resources Management (HRM), Strategy (STR), Social Responses (SOC) and Governance Practices (GOV) can influence the Financial Management (FIN) of NPOs. The instrument survey consisted of 45 items, distributed into five dimensions, corresponding 6 variables to HRM, 6 to STR, 10 variables to SOC, 15 to GOV and 8 to FIN.

We analysed 242 Holy Houses of Mercy, which corresponds to 62.5% of the universe of 387 Holy Houses of Mercy currently in Portugal's operation.

The data were collected in person, between November 2018 and December 2019, through the application of questionnaires, within the scope of audits carried out through the program "Miseric