Economics at your fingertips  

Better performing NGOs do report more accurately: Evidence from investigating Ugandan NGO financial accounts

Ronelle Burger, Canh Thien Dang and Trudy Owens

No 2017-10, Discussion Papers from University of Nottingham, CREDIT

Abstract: Improving ways to assess development efforts is an important task. Yet, little has been done to understand the connection between the effectiveness of NGOs and their financial accountability. We use Benford’s Law to assess accuracy of financial reports by a sample of Ugandan NGOs. We find 25% of the sample provide financial information that may be inaccurate to the true values. We find NGOs with better beneficiary ratings are more likely to submit credible financial data. This contradicts the belief that upward accountability demands crowd out serving the client community. We also distinguish between the decision to withhold some requested financial information and the decision to report inaccurately. We find no evidence that the two decisions are related, with the former decision due to limited capacity and skills. The results suggest a bigger role for beneficiary assessments in monitoring the sector, rather than an increasing demand for financial reporting.

Keywords: NGOs; diversification; risk aversions; motivations; historic flood (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, CREDIT School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Hilary Hughes ().

Page updated 2020-02-19
Handle: RePEc:not:notcre:17/10