Cost structure vis-a-vis funnding competitiveness for NGOs. A case study of World Vision Zimbabwe WVZ.

Abstract

This study was carried out to investigate the interconnectedness of the cost structure to funding competitiveness. The study was carried out in response to a management problem of funding competitiveness facing many NGOs in the world and also to contribute to the gap in literature, that is, the economics of charity literature in the last four decades heavily focused on the supply side, hence leaving critical gaps on the demand side. The objectives of the study were to examine the relationships between support cost rate, size and multinational dimension, rating or reputation, faith based orientation, fundraising effort and strategy and funding competitiveness. The research methodology was based on a single case study (World Vision Zimbabwe). A sample of 20 employees out of a population of 40 was selected using stratified sampling. In view of the final response rate of 100% (20 out of 20) the sample size was statistically representative for the study. It was observed that there was a significant negative relationship between support cost rate or price and funding competitiveness. The study also revealed a significant positive relationship between the dependent variable and fundraising effort and strategy, and size and multinational dimension. Research findings showed that there was a positive relationship between funding competitiveness and rating or reputation. The relationships between funding competitiveness and independent variables were consistent with the broad funding competitiveness literature. The study recommended that World Vision Zimbabwe should prioritize support cost rate or fixed cost rate, fundraising effort and strategy and expand international links through affiliate offices in order to maintain and grow funding competitiveness. The study further recommended that, in view of the single case study approach used, future research should adopt a multi-case study design.