 Small is beautiful? Financial efficiency of small fundraising charitiesHans van der Heijden The British Accounting Review, 2013, vol. 45, issue 1, 50-57 Abstract: The study analyses potential scale efficiencies of 1196 Dutch fundraising charities for 2005–2009. The data set includes a unique group of small charities (reporting an income of less than €1 million). The study articulates and tests differences in financial efficiency between smaller and larger charities, specifically concerning program expenditure, administrative expenditure, and fundraising expenditure. The study finds that reported levels of program-spending efficiency and administrative efficiency are similar across small and large charities, with no economies of scale. In addition, the study finds that smaller charities report considerably better fundraising efficiency ratios, with the smallest charities reporting an average spend of €8 to raise €100 and the largest charities reporting an average spend of €15. The paper discusses why larger charities appear to experience scale inefficiencies in fundraising and provides directions for further research. Keywords: Charities; Charity size; Fundraising ratio; Program ratio (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:45:y:2013:i:1:p:50-57 DOI: 10.1016/j.bar.2012.12.004 Access Statistics for this article The British Accounting Review is currently edited by Nathan Lael Joseph and Alan Lowe More articles in The British Accounting Review from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.