What determines the revenue of development NGOs in South Korea?: exploring differences between revenue and age groups

Abstract

ABSTRACT In this study, we aimed to test the effects of various factors on the revenue of development non-governmental organizations (NGOs) by empirically analyzing their diversification strategies (i.e. revenue sources, beneficiary countries, and fields types), institutional practices (i.e. accountability and professionality), and their organizational capacity. We conducted panel regression analyses with random effects on development NGOs in South Korea using data collected between 2016 and 2019. In all statistical tests, organizational capacity consistently exerted a significantly positive effect on the revenue of NGOs, corroborating our theoretical predictions based on resource dependence theory. In addition, institutional practices, particularly accountability programs, were useful for those NGOs that did not already generate high revenue, while diversification had differential effects. In particular, it was helpful for relatively new NGOs to diversify their revenue sources and/or fields types but not necessarily for older and/or high-revenue NGOs.