Determinants of funds acquisition in large international Non-Governmental Organizations (NGO)

Abstract

This study aims to examine the determinants of funds acquisition in large and international non-governmental organizations (NGOs). The importance of this study revolves around the possibility of continuing to obtain funds for the provision of humanitarian services constantly. The data covers the financial statements and annual reports of 57 international NGOs for the period from 2015 to 2019. It followed a quantitative descriptive approach and used panel data to generate the regression coefficient. By employing panel models (OLS, FEM, and REM). It was estimated that the random effect model (REM) is the most appropriate model for this study. The findings show that the status of NGOs has a positive effect on the acquisition of funds by the NGOs' years of operation (growth) and the NGO’s size, and the efficiency of funds’ performance affects the acquisition of funds by measuring the efficiency of funds’ utilization. Meanwhile, it has a negative significant relationship with the efficiency of human resources. Also, it found that the measures of transparency and financial disclosure in reports are not significant. The study contributes to an increase in the literature on NGOs and provides important results for small and local NGOs. This study recommends studying the funds' applications for each NGO separately and comparing them to know the methods and factors used by large and international NGOs to obtain funds continuously.