Small is beautiful? Financial efficiency of small fundraising charities
The study analyses potential scale efficiencies of 1196 Dutch fundraising charities for 2005–2009. The data set includes a unique group of small charities (reporting an income of less than €1 million).
The report compares the efficiency in how much small and large charities spend on programs, administration, and fundraising. It finds that program and administrative spending efficiency are pretty similar in smaller and larger-sized charities, with no economies of scale for larger charities. Further, it reveals how smaller charities report considerably better fundraising efficiencies, with it taking €8 to raise €100, with €15 for larger organisations. If your small organisation wants to argue that you maybe spend money better that larger organisations, this seems pretty helpful evidence.
