When NGOs go global: Competition on international markets for development donations

Abstract

Why are many large non-governmental organizations (NGOs) becoming multinational entities? What are the welfare implications of this integration of markets for development donations? To answer these questions, we build a simple two-country model with horizontally differentiated NGOs competing in fundraising. We find that NGOs become multinational if the economies of scale in fundraising are sufficiently large. In that case, national NGOs in the smaller country disappear, while some national NGOs remain in the larger country only if country sizes are sufficiently different. Social welfare is higher in the regime with multinationals than under autarky

Brothers in alms? Coordination between nonprofits on markets for donations

“…Given that nonpro…ts have to compete for donations through fundraising activities, these organizations can be considered as rational players on the philanthropic 'market' (Andreoni 2006). Following this avenue, recent studies (Bilodeau and Slivinski 1997, Andreoni and Payne 2003, Castaneda et al 2008, Aldashev and Verdier 2009) have modelled the nonpro…t sector outcomes as equilibria of decentralized interaction between many nonpro…t organizations, each of which maximizes a certain (usually impurely altruistic or "warm glow") objective function.…”

“…To the best of our knowledge, there are no papers that theoretically analyze the cooperative agreements among nonpro…ts. 1 The existing literature (see, in particular, Rose-Ackerman 1982, Bilodeau and Slivinski 1997, Castaneda et al 2008, Aldashev and Verdier 2009, Aldashev and Verdier 2010) mostly concentrates on fundraising competition between non-pro…ts. Our paper contributes to this literature by studying the conditions under which the nonpro…ts successfully coordinate their fundraising activities, so as to reduce the negative consequences of the harmful competition for donations.…”

“…Here, C is the consumption of a numeraire good, d = (d i ) i=1;::;n is a vector of donations to nonpro…t projects i = 1; :::; n, ! i is the positive (or null) weight attached to giving to project i by each donor and a positive parameter capturing the degree of substitution between 1 Gugerty (2008) and the papers in Gugerty and Prakash (2010) study, on the basis of case studies, the performance of several forms of nonpro…t self-regulation, mainly aimed at increasing accountability towards donors. donations to di¤erent projects (i.e.…”

The Non-profit Sector in Russia in the Global Economy View

“…Nonprofits are mostly small-and medium-sized [9]. Though the annual budgets of some larger NPOs overtop these of certain countries [11]. Let's take an example: WorldVision states the revenue of approximately 3 billion US dollars [12]; Save the Children − over 678 million in the US alone in 2015.…”

Who Had the Idea to Build Up a Village Organization? Some Evidence From Senegal and Burkina Faso

“…Over the past decade the World Bank allocated 85 billion dollars to local participatory development (ibid.). As a consequence, many researches show large and increasing dependence of southern civil society organizations on donors’ funds (Ahmed 2006, Barr et al , Aldashev and Navarra , Holmen ) as well as northern NGOs outsourcing to southern ones (Werker and Ahmed , Barr et al , Aldashev and Navarra , Aldashev and Verdier , ).…”