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

30 Pages Posted: 9 Apr 2012

See all articles by Peter Nunnenkamp

Peter Nunnenkamp

University of Kiel

Hannes Öhler

University of Goettingen (Gottingen)

Date Written: February 2012

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 non‐charitable 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.

Suggested Citation

Nunnenkamp, Peter and Öhler, Hannes, Funding, Competition and the Efficiency of NGOs: An Empirical Analysis of Non‐Charitable Expenditure of US NGOs Engaged in Foreign Aid (February 2012). Kyklos, Vol. 65, Issue 1, pp. 81-110, 2012. Available at SSRN: https://ssrn.com/abstract=2036933 or http://dx.doi.org/10.1111/j.1467-6435.201.00528.x

Peter Nunnenkamp (Contact Author)

University of Kiel ( email )

D-24100 Kiel
Germany

Hannes Öhler

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
2
Abstract Views
409
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information