The Challenge of Resource Allocation in the Nonprofit Sector : Determining the Right Amount of Fundraising Expenses

Title data

Sarikaya, Serkan ; Buhl, Hans Ulrich:
The Challenge of Resource Allocation in the Nonprofit Sector : Determining the Right Amount of Fundraising Expenses.
In: Journal of Nonprofit & Public Sector Marketing. Vol. 33 (2021) Issue 1 . - pp. 1-28.
ISSN 1540-6997
DOI: https://doi.org/10.1080/10495142.2019.1708527

Official URL:

Abstract in another language

Nonprofit organizations (NPOs) have access to a limited amount of funding which must finance multiple activities. The challenge of allocating resources includes setting an appropriate budget for fundraising. The dynamic optimization model developed in this study enables an NPO to maximize the services that it can provide over time by calculating the optimal amounts of fundraising and service expenses for each period. It highlights the trade-off NPOs face in allocating resources to either services or fundraising. Our analysis provides practitioners with initial recommendations as to how an NPO’s resource allocation can be adjusted to suit different environmental settings. From a research perspective, the paper presents an analytic modeling approach grounded in well-founded economic theory, which addresses the challenge of resource allocation between fundraising and service expenses. We also discuss directions for future research and provide suggestions for other researchers and practitioners interested in this field.

Further data

Item Type:	Article in a journal
Refereed:	Yes
Keywords:	budgeting; decision-making; fundraising; nonprofit management; quantitative research
Institutions of the University:	Faculties > Faculty of Law, Business and Economics > Department of Business Administration Research Institutions Research Institutions > Affiliated Institutes Research Institutions > Affiliated Institutes > Fraunhofer Project Group Business and Information Systems Engineering Research Institutions > Affiliated Institutes > FIM Research Center Finance & Information Management Faculties Faculties > Faculty of Law, Business and Economics
Result of work at the UBT:	No
DDC Subjects:	000 Computer Science, information, general works > 004 Computer science 300 Social sciences > 330 Economics
Date Deposited:	29 Jan 2020 08:12
Last Modified:	12 Jul 2022 07:43
URI:	https://eref.uni-bayreuth.de/id/eprint/54244