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The Impact of International Development NPO's Capacity and Financial Transparency on Government's Financial Supports

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2015, 26(3), pp.51-81
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

Jungsook Kim 1 M. Jae Moon 1

1연세대학교

Accredited

ABSTRACT

Despite continued increase in ODA budget, we do not know much about the relationship among NPO's organizational capacity, financial transparency, and financial supports. This aims to construct theoretical framework and empirically investigate how organizational capacity of NPOs and financial transparency affect government's financial supports. The capacity of International Development NPOs includes both internal management capacity, boundary-spanning capacity, and financial transparency. Internal management capacity represents business capacity, professionalism, and external resource mobilization capacity while boundary-spanning capacity represents human mobilization capacity and financial resource mobilization capacity. Boundary-spanning capacity includes networking capacity, international status and social reputation. Tobit regression analysis is adopted to test posited hypotheses. The empirical results suggest that financial resource mobilization, professionalism, social reputation, and networking activities appear to affect the size of financial support. This study also finds that there are negative interaction effects of financial transparency with both networking activities and business capacity on government's financial supports. The results suggest that international development NPOs should enhance professionalism, financial resource mobilization, and social reputation in order to increase their government subsidies. Financial transparency appears to be helpful in increasing government subsidies particularly to the NPOs which are low in business and networking capacities.

Citation status

* References for papers published after 2023 are currently being built.

This paper was written with support from the National Research Foundation of Korea.