A Development Agenda, the Donor Dollar, and Voluntary Failure
Accounting, Business and Financial History, Vol. 20, No. 2, 2010
Posted: 10 Sep 2010 Last revised: 17 Feb 2011
Date Written: July 1, 2010
This paper examines the success and failure of the once pre-eminent New Zealand charity, the Council for the Organisation of Relief Services Overseas (CORSO). While delivering aid for government in its early years was a factor in its success, so too was its broad membership base. Voluntary failure occurred when CORSO lost government support; it also lost donor support when international charities established a competitive donor ‘market’ in New Zealand. Its supporters’ unwillingness to ‘buy-in’ to its mission change to focus on local poverty was another factor in CORSO’s ‘long march to obscurity’ (McLoughlin, 1991). This case study extends Salamon’s (1987) voluntary failure theory to consider the influence of competition on voluntary failure in a development organisation.
Keywords: CORSO, New Zealand, Salamon's theory of voluntary failure
JEL Classification: M4, L3
Suggested Citation: Suggested Citation