Paying to Attract the Unpaid: The Relationship between Executive Compensation and Volunteering in Nonprofit Sport Clubs

Abstract Professionalization in nonprofit sport clubs is advancing, with many organizations introducing paid executive directors (EDs) to cope with growing administrative and coordination demands. Because these clubs still depend heavily on unpaid members to deliver activities and govern the organization, it remains unclear how paid leadership reshapes volunteer capacity. This study investigates whether introducing a paid ED affects volunteer capacity in German sport clubs. Using five waves (5–9) of the Sport Development Report, club-year panel data are analyzed with two-way fixed-effects models. Switching from an unpaid to a paid ED is associated with fewer reported problems recruiting volunteers and a larger volunteer workforce over subsequent years. The increases are observed for both male and female volunteers and are concentrated in operational rather than board roles. Effects are strongest in large, diversified, and financially healthy clubs. Overall, the results reveal executive professionalization as a conditional capacity-building strategy rather than an inherent threat to volunteering.