Efficiency in non-profit organizations

Background and problem discussion: The need for aid organizations is growing in pace with increase in natural disasters and poverty. At the same time the need for non-profit organization to be able to present results of some kind increases with the amount of money involved. The often quite long distance between people giving money to charity and the set where the actual aid projects take place makes it important to have some type of efficiency thinking formulated. The difficulty lies in understanding the efficiency of non-profit organizations and what results the contributions have. Therefore our focus in this study will be on describing how efficiency in the activities of aid organizations is estimated. Purpose: The purpose is to describe how three Swedish aid organizations estimate external and internal efficiency and what they do in order to achieve it and for what reasons. Delimitations: We have chosen three Swedish non-profit aid organizations and picked out one or two people from every organization and let them represent the entire organization. Method: We started our study by reading relevant literature and earlier research in order to get to know more of the selected subject. We are going to approach this subject by doing a case study, where we have selected three Swedish aid organizations to be the focus of our interest. We wanted the organizations to have activities that focused on similar kinds of target groups in order to make it easier to detect common denominators…


1 Introduction
1.1 Background
1.2 Problem discussion and formulation
1.3 Purpose
1.4 Delimitations
1.5 Disposition
2 Method
2.1 Case study
2.2 Selection of organizations
2.3 Selection of method for collection of data
2.4 Selection of respondents
2.5 Implementation of collection of data
2.6 Method for processing data
2.7 Method problems
2.7.1 Validity
2.7.2 Reliability
2.8 Choice of theory
3 Theory
3.1 Efficiency in profit driven organizations
3.2 Efficiency in the municipal activity
3.3 Institutional isomorphism
3.3.1 An institutional perspective
3.3.2 Institutional isomorphism
3.4 Ethics in social work
3.5 FRII – Swedish Fundraising Council
3.6 SFI – The Foundation for Collection Review
3.7 Charity Rating
3.8 Sida
4 Empirical data and analysis
4.1 External perspective
4.1.1 Pressure from the outside
4.1.2 Pleasing the public
4.1.3 The risks of adjusting
4.1.4 The main focus
4.1.5 The salary discussion
4.1.6 Allocation of scarce resources
4.1.7 Control and conflicting interests
4.1.8 Problems with efficiency measuring
4.1.9 Governmental demands
4.1.10 Company sponsorships
4.1.11 Long term efficiency through quality
4.1.12 Following up results
4.1.13 Charity Rating
4.2 Internal perspective
4.2.1 Goal fulfillment The main activities Additional activities
4.2.2 Alternatives to efficiency measuring Ethics and accountability Estimations and indicators Motivation
5 Conclusions
5.1 Conclusions
5.2 Suggestions for further research
6 Table of literature
7 Appendix
Appendix 1 – Interview questions

Author: Steingrüber, Helena,Larsson, Kristin

Source: Goteborg University

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Efficiency in non-profit organizations