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The Determinants of Funding to Ugandan Nongovernmental Organizations

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  • Marcel Fafchamps
  • Trudy Owens

Abstract

Original Ugandan data collected by the authors are used to examine the determinants of funding to local nongovernmental organizations (NGOs). Success in attracting grants from international donors depends mostly on network effects. NGOs that raise in-kind resources locally tend to be young and managed by someone who is simultaneously employed elsewhere. There is some evidence of crowding out: NGOs that receive grant funding are less likely to obtain resources locally, whether in cash or in kind. But this seems to be primarily the result of selection. Once NGO-fixed effects are controlled for, there is no evidence that NGOs receive less revenue from fees and donation after obtaining a grant. These results suggest that donors regard Ugandan NGOs as subcontractors of their development efforts, not as charitable organizations in their own right. Copyright The Author 2009. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / the world bank . All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Marcel Fafchamps & Trudy Owens, 2009. "The Determinants of Funding to Ugandan Nongovernmental Organizations," World Bank Economic Review, World Bank Group, vol. 23(2), pages 295-321, March.
  • Handle: RePEc:oup:wbecrv:v:23:y:2009:i:2:p:295-321
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    File URL: http://hdl.handle.net/10.1093/wber/lhp001
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    Citations

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    Cited by:

    1. Ronelle BURGER & Indraneel DASGUPTA & Trudy OWENS, 2015. "Why Pay NGOs to Involve the Community?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(1), pages 7-31, March.
    2. Gani Aldashev & Cecilia Navarra, 2017. "Development NGOs: Basic Facts," Working Papers ECARES ECARES 2017-36, ULB -- Universite Libre de Bruxelles.
    3. Amankwah-Amoah, Joseph, 2016. "An integrative process model of organisational failure," Journal of Business Research, Elsevier, vol. 69(9), pages 3388-3397.
    4. Federica VIGANO & Andrea SALUSTRI, 2015. "Matching profit and Non-profit Needs: How NPOs and Cooperative Contribute to Growth in Time of Crisis. A Quantitative Approach," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(1), pages 157-178, March.
    5. Spiros Bougheas & Alessia Isopi & Trudy Owens, "undated". "How do Donors Allocate Funds to NGOs? Evidence from Uganda," Discussion Papers 12/08, University of Nottingham, CREDIT.
    6. repec:eee:reecon:v:71:y:2017:i:2:p:356-371 is not listed on IDEAS
    7. Astrid SIMILON, 2015. "Self-Regulation Systems for NPO Coordination: Strenghts and Weaknesses of Label and Umbrella Mechanisms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(1), pages 89-104, March.
    8. repec:elg:eechap:15325_15 is not listed on IDEAS
    9. Berta SILVA & Ronelle BURGER, 2015. "Financial vulnerability: an empirical study of Ugandan NGOs," CIRIEC Working Papers 1515, CIRIEC - Université de Liège.
    10. Gani Aldashev & Esteban Jaimovich & Thierry Verdier, 2016. "Small is Beautiful: Motivational Allocation in the Non-Profit Sector," Working Papers ECARES ECARES 2016-02, ULB -- Universite Libre de Bruxelles.
    11. Besley, Timothy & Ghatak, Maitreesh, 2017. "Public–private partnerships for the provision of public goods: Theory and an application to NGOs," Research in Economics, Elsevier, vol. 71(2), pages 356-371.
    12. Hagen, Rune Jansen, 2014. "Rents and the Political Economy of Development Aid," Working Papers in Economics 07/14, University of Bergen, Department of Economics.

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