Operations Strategy for Non-Governmental Organizations: Increasing Contributions

Monetary contributions are a main interest for non-governmental organizations. This study focuses on identifying variables that might impact total contributions. The variables chosen for this study are diversity, coverage, efficiency, size and fundraising. These five variables are predicted to positively affect the total contributions of both government and public donors. To answer this question, financial and firm specific data from 49 non-governmental organizations were collected from 990 forms from the IRS. The dataset allowed for a time frame of ten years to evaluate what specifically influences monetary contributions. The specific control variables are net assets, number of offices in regions, and fundraising. These were tested against number of programs and the spend ratio. These are believed to positively affect contributions, and the results will lead to an operational strategy for non-governmental organizations. These hypotheses were tested with a cross sectional linear regression. As it was discovered, governments and public donors value different variables. Governments donate more to organizations with larger diversity and coverage. The public focuses on the amount of fundraising, size of the organization and efficiency.