Fundraising Efficiency of Non-Profit Religious Organizations in Thailand
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Published:
Sep 1, 2019
Keywords:
Fundraising Efficiency Religious Organizations Individual Donations Stochastic Frontier Analysis
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Abstract
Non-profit organizations play important role in social welfare. Especially for non-profit religious organizations in Thailand, they are directly to Thai people at many levels ranging from personal, community and society. As a result, Thai communities fully support them by donation or merit. This study examines the fundraising efficiency for religious organizations in Thailand through individual donations. We measure fundraising efficiency using translog stochastic frontier analysis model. The study found that fundraising efficiency for religious organizations from individual donations was relatively low. It was also found that donors would consider the quality and corporate image of the organization before making a donation. In addition, the results show that government grants have a negative impact on fundraising efficiency (crowding-out effect). On the other hand, the use of information and communication technology improves fundraising efficiency and leads to increasing individual.
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References
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Andreoni, J., and Payne, A. (2003). Do government grants to private charities crowd out giving or fund-raising?. American Economic Review, 93(3), 792–812.
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Andreoni, J. (1993). An experimental test of the public goods crowding-out hypothesis. American Economic Review, 83(5), 1317–1327.
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Andreoni J. (2006). Leadership giving in charitable fund-raising. Journal of Public Economic Theory, 8(1), 1–22.
Andreoni J, Payne A. (2011). Is crowding out due entirely to fundraising? Evidence from a panel of charities. Journal of Public Economics, 95(5-6), 334–343.
Apinunmahakul. (2014). Religious and Non-religious Giving in Thailand: An Economic Perspective. Journal of Economics and Sustainable Development, 5(3), 111-118.
Banks, N., and Hulme, D. (2012). The role of NGOs and civil society in development and poverty reduction. BWPI Working Paper 171. Brooks World Poverty Institute, University of Manchester.
Barro, R., and McCleary, R. (2003). “Religion and Economic Growth across Countries”. American Sociological Review, 68(5), 760-781.
Battese G.E. (1992). Frontier production functions and technical efficiency: A survey of empirical applications in agricultural economics. Agricultural Economics, 7(3-4), 185-208
Battese G.E., and T.J. Coelli. (1995) A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data. Empirical Economics, 20(2), 325-332.
Bergstrom, T., Blume, L., and Varian, H. (1986). On the private provision of public goods. Journal Public Economics, 29(1), 25–49.
Bishop, P., and Brand, S. (2003). The efficiency of museums: a stochastic frontier production function approach. Applied Economics, 35(17), 1853–1858.
Cartwright, E., and Patel, A. (2013). How category reporting can improve fundraising. Journal of Economic Behavior and Organization, 87, 73– 90.
Charities Aid Foundation. (2015). CAF World giving Index 2015 A global view of giving trend. London.
Chetkovich, C., and Frumkin, P. (2003). Balancing margin and mission: Nonprofit competition in charitable versus fee-based programs. Administration & Society, 35(5), 564–596.
Civille, R. (1997). Environmental Organizing on the Internet, Center for Civic Networking, Whitepaper for Desktop Alliance .http://www.techrocks.org/ enviroorganizing.html.
Clark, J (1991). Democratizing Development: the Role of Voluntary Organizations. West Harford, CT: Kumarian Press.
Cnaan, R. A., and Goldberg-Glen, R. S. (1991). Measuring motivation to volunteer in human services. Journal of Applied Behavioral Science, 27(3), 269–284.
Davis Smith, J. (1998). The 1997 National Survey of Volunteering, National Centre for Volunteering, London.
De Waal, A., (1997). Famine Crimes: Politics and the Disaster Relief Industry in Africa.Indiana University Press, Bloomington.
Dees, J. (1998). Enterprising Non-Profits. Harvard Business Review, 76, 55-68.
Duncan, B. (1999). Modeling charitable contributions of time and money. Journal of Public Economics, 72(2), 213–242.
Farrell, M.J. (1957).The Measurement of Productive Efficiency. Journal of the Royal Statistical Society 120(3), 253-290.
Frumkin, P., and Andre-Clark, A. (2000). When missions, markets, and politics collide: Values and strategy in the nonprofit human services. Nonprofit and Voluntary Sector Quarterly, 29(1), 141–163.
Frumkin, P., and Kim, MT. (2001). Strategic positioning and the financing of nonprofit organizations: is efficiency rewarded in the contributions marketplace. Public Administration Review, 61(3), 266–275.
Giving USA. (2015). Giving USA 2016: The Annual Report on Philanthropy for the Year 2015. ค้นวันที่ 17 กันยายน 2560 จาก https://givingusa.org/giving-usa-2016/
Greenfield, G., and Rohde, F. (2009). “Technology Acceptance: Not All Organizations or Workers May Be the Same”. lnternational Journal Accounting Information System, 10(4), 263-272.
Handy, F., and Srinivasan, N. (2004). Improving quality while reducing costs? An economic evaluation of the net benefits of hospital volunteers. Nonprofit and Voluntary Sector Quarterly, 33(1), 28–54.
Hansmann, H. B. (1980). “The Role of Nonprofit Enterprise”. Yale Law Journal, 89(5), 835–901.
Hughes, P. (2006). The Economics of Nonprofit Organizations. Nonprofit Management & Leadship, 16(4), 429-450.
Hungerman, D.M. (2005). “Are Church and State Substitutes? Evidence from the 1996 Welfare Reform”. Journal of Public Economics, 89(11-12), 2245-2267.
John, D., Huber, D. J., and Stanig, P. (2011). Church-state separation and redistribution. Journal of Public Economics, 95(7-8), 828–836.
Kubotani and Engstrom, D. (2005). The Roles of Buddhist Temples in the Treatment of HIV/AIDS in Thailand. The journal of sociology & Social Welfare, 32(4), 5-21.
Linh, H. D. (2009). Non-Governmental Organizations (NGOs) and Development: An Illustration of Foreign NGOs in Vietnam. Master’s thesis, Ohio University
McDonald, R. E. (2007). An investigation of innovation in nonprofit organizations: The role of organizational mission. Nonprofit and Voluntary Sector Quarterly, 36(2), 256–281.
Meeusen, W., and van den Broeck, J. (1977). Technical efficiency and dimension of the firm: some results on the use of frontier production functions. Empirical Economics, 2(2), 109–122.
Moore, M. (2000). “Managing for Value: Organizational Strategy in For-Profit, Nonprofit, and Governmental Organizations”. Nonprofit and Voluntary Sector Quarterly, 29(1), 183- 208.
Okten, C., and Weisbrod, B. (2000). Determinants of donations in private nonprofit markets. Journal of Public Economics, 75(2), 255–272.
Pepall, L., Richards, D., Straub, J., and DeBartolo, M. (2006). Crowding Out and Competition in the Religious Marketplace. Mimeo, Tufts University.
Pholphirul. (2015). Happiness from Giving: Quantitative Investigation of Thai Buddhists. Applied Research in Quality of Life, 10(4), 703-720.
Porter, G. (2003). NGOs and poverty reduction in a globalizing world: perspectives from Ghana. Progress in Development Studies, 3(2), 131–145.
Rose-Ackerman, S. (1982). Charitable giving and “excessive” fundraising. The Quarterly Journal of Economics, 97(2): 193-212.
Shang J, Croson R. (2015). The Impact of Social Comparisons on Nonprofit Fund Raising. Experimental Economics, 11, 143–156.
Sharir, M., and Lerner, M. (2006). Gauging success ventures initiated by individual social entrepreneurs. Journal of World Business, 41(1), 6–20.
Song, S., and Yi, T. (2011). The fundraising efficiency in U.S. non-profit art organizations: an application of a Bayesian estimation approach using the stochastic frontier production model. Journal of
Productivity Analysis, 35(2), 171–180.
Srinivas, H. (2006). Fund Raising Realities and Strategies: Lessons Learnt at the NGO Cafe. ค้นจาก http://www.gdrc.org/ngo/funding/cafe-strategies.html.
Ullah, A A.K.M., and Routray, K. J. (2007). Rural poverty alleviation through NGO interventions in Bangladesh: how far is the achievement?. International Journal of Social Economics, 34(4), 237–248.
Van Diepen, M., Donkers, B., and Franses, P., (2006). Dynamic and Competitive Effects Direct Mailings, Working Paper No. 2006/050. Erasmus Research Institute of Management, Erasmus University Rotterdam.
Wardell, F., Lishman, J. and Whalley, L. J. (2000) Who volunteers?. British Journal of Social Work, 30(2), 227–248.
Warwick, M. (1999). The Five Strategies for Fundraising Success: A Mission-Based Guide to Achieving Your Goals. Jossey Bass, San Francisco.
Weerawardena, J., McDonald, R. E., and Sullivan Mort, G. (2010). Sustainability of nonprofit organization: An empirical investigation. Journal of World Business, 45(4), 346-356.
Weerawardena, J., and Sullivan Mort, G. (2001). Learning, innovation and competitive advantage in not-for-profit aged care marketing: A conceptual model and research propositions. Journal of Nonprofit & Public Sector Marketing, 9(3), 53–73.
Weisbrod, B. A. (1998). The nonprofit mission and its financing. Journal of Policy Analysis and Management, 17(2), 165–174.
Wong, C. M., Chua, C. H., and Vasoo, S. (1998). Contributions to charitable organizations in a developing country: the case of Singapore. International Journal of Social Economics, 25(1), 25–42.
Wong, C. M., and Chua, C. H. (2003). The role of united charities in fundraising: The case of Singpore. Public and Cooperative Economics, 74(3), 433-463.
World Bank. (2016). World Bank national accounts data, and OECD National Accounts data files. ค้นวันที่ 1 ธันวาคม 2560 จากhttps://data.worldbank.org/indicator/NY.GDP.PCAP.CD
Whithear, R. (1999) Charity shop volunteers: a no-cost option? Voluntary Action, 1(3), www.ivr.org.uk/, National Centre for Volunteering, London.
Yi, T. (2010). Determinants of Fundraising Efficiency of Nonprofit Organizations: Evidence from US Public Charitable Organizations. Managerial and Decision Economics, 31(7), 465–475.
Zimmerman, B., and Dart, R. (1998). Charities doing commercial ventures: Societal and organizational implications. Toronto, Canada: Canadian Policy Research Network and the Trillium Foundation.
Andreoni, J., and Payne, A. (2003). Do government grants to private charities crowd out giving or fund-raising?. American Economic Review, 93(3), 792–812.
Andreoni, J. (1990). Impure altruism and donations to public goods: a theory of warm-glow giving. Economic Journal, 100(401), 464–477.
Andreoni, J. (1993). An experimental test of the public goods crowding-out hypothesis. American Economic Review, 83(5), 1317–1327.
Andreoni, J. (1998). Toward a Theory of Charitable Fund-Raising. Journal of Political Economy, 106(6), 1186-1213.
Andreoni J. (2006). Leadership giving in charitable fund-raising. Journal of Public Economic Theory, 8(1), 1–22.
Andreoni J, Payne A. (2011). Is crowding out due entirely to fundraising? Evidence from a panel of charities. Journal of Public Economics, 95(5-6), 334–343.
Apinunmahakul. (2014). Religious and Non-religious Giving in Thailand: An Economic Perspective. Journal of Economics and Sustainable Development, 5(3), 111-118.
Banks, N., and Hulme, D. (2012). The role of NGOs and civil society in development and poverty reduction. BWPI Working Paper 171. Brooks World Poverty Institute, University of Manchester.
Barro, R., and McCleary, R. (2003). “Religion and Economic Growth across Countries”. American Sociological Review, 68(5), 760-781.
Battese G.E. (1992). Frontier production functions and technical efficiency: A survey of empirical applications in agricultural economics. Agricultural Economics, 7(3-4), 185-208
Battese G.E., and T.J. Coelli. (1995) A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data. Empirical Economics, 20(2), 325-332.
Bergstrom, T., Blume, L., and Varian, H. (1986). On the private provision of public goods. Journal Public Economics, 29(1), 25–49.
Bishop, P., and Brand, S. (2003). The efficiency of museums: a stochastic frontier production function approach. Applied Economics, 35(17), 1853–1858.
Cartwright, E., and Patel, A. (2013). How category reporting can improve fundraising. Journal of Economic Behavior and Organization, 87, 73– 90.
Charities Aid Foundation. (2015). CAF World giving Index 2015 A global view of giving trend. London.
Chetkovich, C., and Frumkin, P. (2003). Balancing margin and mission: Nonprofit competition in charitable versus fee-based programs. Administration & Society, 35(5), 564–596.
Civille, R. (1997). Environmental Organizing on the Internet, Center for Civic Networking, Whitepaper for Desktop Alliance .http://www.techrocks.org/ enviroorganizing.html.
Clark, J (1991). Democratizing Development: the Role of Voluntary Organizations. West Harford, CT: Kumarian Press.
Cnaan, R. A., and Goldberg-Glen, R. S. (1991). Measuring motivation to volunteer in human services. Journal of Applied Behavioral Science, 27(3), 269–284.
Davis Smith, J. (1998). The 1997 National Survey of Volunteering, National Centre for Volunteering, London.
De Waal, A., (1997). Famine Crimes: Politics and the Disaster Relief Industry in Africa.Indiana University Press, Bloomington.
Dees, J. (1998). Enterprising Non-Profits. Harvard Business Review, 76, 55-68.
Duncan, B. (1999). Modeling charitable contributions of time and money. Journal of Public Economics, 72(2), 213–242.
Farrell, M.J. (1957).The Measurement of Productive Efficiency. Journal of the Royal Statistical Society 120(3), 253-290.
Frumkin, P., and Andre-Clark, A. (2000). When missions, markets, and politics collide: Values and strategy in the nonprofit human services. Nonprofit and Voluntary Sector Quarterly, 29(1), 141–163.
Frumkin, P., and Kim, MT. (2001). Strategic positioning and the financing of nonprofit organizations: is efficiency rewarded in the contributions marketplace. Public Administration Review, 61(3), 266–275.
Giving USA. (2015). Giving USA 2016: The Annual Report on Philanthropy for the Year 2015. ค้นวันที่ 17 กันยายน 2560 จาก https://givingusa.org/giving-usa-2016/
Greenfield, G., and Rohde, F. (2009). “Technology Acceptance: Not All Organizations or Workers May Be the Same”. lnternational Journal Accounting Information System, 10(4), 263-272.
Handy, F., and Srinivasan, N. (2004). Improving quality while reducing costs? An economic evaluation of the net benefits of hospital volunteers. Nonprofit and Voluntary Sector Quarterly, 33(1), 28–54.
Hansmann, H. B. (1980). “The Role of Nonprofit Enterprise”. Yale Law Journal, 89(5), 835–901.
Hughes, P. (2006). The Economics of Nonprofit Organizations. Nonprofit Management & Leadship, 16(4), 429-450.
Hungerman, D.M. (2005). “Are Church and State Substitutes? Evidence from the 1996 Welfare Reform”. Journal of Public Economics, 89(11-12), 2245-2267.
John, D., Huber, D. J., and Stanig, P. (2011). Church-state separation and redistribution. Journal of Public Economics, 95(7-8), 828–836.
Kubotani and Engstrom, D. (2005). The Roles of Buddhist Temples in the Treatment of HIV/AIDS in Thailand. The journal of sociology & Social Welfare, 32(4), 5-21.
Linh, H. D. (2009). Non-Governmental Organizations (NGOs) and Development: An Illustration of Foreign NGOs in Vietnam. Master’s thesis, Ohio University
McDonald, R. E. (2007). An investigation of innovation in nonprofit organizations: The role of organizational mission. Nonprofit and Voluntary Sector Quarterly, 36(2), 256–281.
Meeusen, W., and van den Broeck, J. (1977). Technical efficiency and dimension of the firm: some results on the use of frontier production functions. Empirical Economics, 2(2), 109–122.
Moore, M. (2000). “Managing for Value: Organizational Strategy in For-Profit, Nonprofit, and Governmental Organizations”. Nonprofit and Voluntary Sector Quarterly, 29(1), 183- 208.
Okten, C., and Weisbrod, B. (2000). Determinants of donations in private nonprofit markets. Journal of Public Economics, 75(2), 255–272.
Pepall, L., Richards, D., Straub, J., and DeBartolo, M. (2006). Crowding Out and Competition in the Religious Marketplace. Mimeo, Tufts University.
Pholphirul. (2015). Happiness from Giving: Quantitative Investigation of Thai Buddhists. Applied Research in Quality of Life, 10(4), 703-720.
Porter, G. (2003). NGOs and poverty reduction in a globalizing world: perspectives from Ghana. Progress in Development Studies, 3(2), 131–145.
Rose-Ackerman, S. (1982). Charitable giving and “excessive” fundraising. The Quarterly Journal of Economics, 97(2): 193-212.
Shang J, Croson R. (2015). The Impact of Social Comparisons on Nonprofit Fund Raising. Experimental Economics, 11, 143–156.
Sharir, M., and Lerner, M. (2006). Gauging success ventures initiated by individual social entrepreneurs. Journal of World Business, 41(1), 6–20.
Song, S., and Yi, T. (2011). The fundraising efficiency in U.S. non-profit art organizations: an application of a Bayesian estimation approach using the stochastic frontier production model. Journal of
Productivity Analysis, 35(2), 171–180.
Srinivas, H. (2006). Fund Raising Realities and Strategies: Lessons Learnt at the NGO Cafe. ค้นจาก http://www.gdrc.org/ngo/funding/cafe-strategies.html.
Ullah, A A.K.M., and Routray, K. J. (2007). Rural poverty alleviation through NGO interventions in Bangladesh: how far is the achievement?. International Journal of Social Economics, 34(4), 237–248.
Van Diepen, M., Donkers, B., and Franses, P., (2006). Dynamic and Competitive Effects Direct Mailings, Working Paper No. 2006/050. Erasmus Research Institute of Management, Erasmus University Rotterdam.
Wardell, F., Lishman, J. and Whalley, L. J. (2000) Who volunteers?. British Journal of Social Work, 30(2), 227–248.
Warwick, M. (1999). The Five Strategies for Fundraising Success: A Mission-Based Guide to Achieving Your Goals. Jossey Bass, San Francisco.
Weerawardena, J., McDonald, R. E., and Sullivan Mort, G. (2010). Sustainability of nonprofit organization: An empirical investigation. Journal of World Business, 45(4), 346-356.
Weerawardena, J., and Sullivan Mort, G. (2001). Learning, innovation and competitive advantage in not-for-profit aged care marketing: A conceptual model and research propositions. Journal of Nonprofit & Public Sector Marketing, 9(3), 53–73.
Weisbrod, B. A. (1998). The nonprofit mission and its financing. Journal of Policy Analysis and Management, 17(2), 165–174.
Wong, C. M., Chua, C. H., and Vasoo, S. (1998). Contributions to charitable organizations in a developing country: the case of Singapore. International Journal of Social Economics, 25(1), 25–42.
Wong, C. M., and Chua, C. H. (2003). The role of united charities in fundraising: The case of Singpore. Public and Cooperative Economics, 74(3), 433-463.
World Bank. (2016). World Bank national accounts data, and OECD National Accounts data files. ค้นวันที่ 1 ธันวาคม 2560 จากhttps://data.worldbank.org/indicator/NY.GDP.PCAP.CD
Whithear, R. (1999) Charity shop volunteers: a no-cost option? Voluntary Action, 1(3), www.ivr.org.uk/, National Centre for Volunteering, London.
Yi, T. (2010). Determinants of Fundraising Efficiency of Nonprofit Organizations: Evidence from US Public Charitable Organizations. Managerial and Decision Economics, 31(7), 465–475.
Zimmerman, B., and Dart, R. (1998). Charities doing commercial ventures: Societal and organizational implications. Toronto, Canada: Canadian Policy Research Network and the Trillium Foundation.