Funding, Competition and the Efficiency of NGOs: An Empirical Analysis of Non-charitable Expenditure of US NGOs Engaged in Foreign Aid

Peter Nunnenkamp and Hannes Öhler

No 11-026, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: We assess the determinants of the wide variation in the efficiency of foreign aid activities across US-based non-governmental organizations (NGOs). In particular, we analyze whether noncharitable expenditures for administration, management and fundraising depend on the intensity of competition among NGOs and on the degree to which they are refinanced by governments. We control for NGO heterogeneity in various dimensions as well as major characteristics of recipient countries. We find that fiercer competition is associated with more efficient foreign aid activities of NGOs, rather than leading to “excessive” fundraising. Official funding tends to increase administrative costs. Nevertheless, officially financed NGOs spend relatively more on charitable activities since they are less concerned with collecting private donations through fundraising efforts.

Keywords: non-governmental organizations; foreign aid; administrative costs; fundraising; United States (search for similar items in EconPapers)
JEL-codes: F35 L31 (search for similar items in EconPapers)
Pages: 27 p.
Date: 2011-06
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Funding, Competition and the Efficiency of NGOs: An Empirical Analysis of Non‐charitable Expenditure of US NGOs Engaged in Foreign Aid (2012)
Working Paper: Funding, Competition and the Efficiency of NGOs: An Empirical Analysis of Non-charitable Expenditure of US NGOs Engaged in Foreign Aid (2011)
Working Paper: Funding, Competition and the Efficiency of NGOs: An Empirical Analysis of Non-charitable Expenditure of US NGOs Engaged in Foreign Aid (2011)
Working Paper: Funding, Competition and the Efficiency of NGOs: An Empirical Analysis of Non-charitable Expenditure of US NGOs Engaged in Foreign Aid (2010)
Working Paper: Funding, competition and the efficiency of NGOs: An empirical analysis of noncharitable expenditure of US NGOs engaged in foreign aid (2010)
Working Paper: Funding, competition and the efficiency of NGOs: An empirical analysis of non-charitable expenditure of US NGOs engaged in foreign aid (2010)
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