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Strategic positioning and the financing of nonprofit organizations: is efficiency rewarded in the contributions marketplace?
Abstract
This article addresses the question of whether operational efficiency is recognized & rewarded by the private funders that support nonprofit organizations in fields ranging from education to social service to arts & beyond. Looking at the administrative efficiency & fundraising results of a large sample of nonprofit organizations over an 11-year period, we find that nonprofits that position themselves as cost efficient -- reporting low administrative to total expense ratios -- fared no better over time than less efficient appearing organizations in the market for individual, foundation, & corporate contributions. From this analysis, we suggest that economizing may not always be the best strategy in the nonprofit sector.
Journal
(2001)
vol61
no3
pages266-275
Categories
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Fundraising
