The Global NGO Survey aimed to understand and quantify competition in the NGO sector and to explore how NGOs react strategically to the the current challenges. Through a broad set of questions, differences in the relevance of single factors and strategies were be explored. Based on the NGO’s budget size strategic implications could be given.
In general a budget size of 250.000 USD serves as a useful dividing line to seperate smaller and larger NGOs. Extreme mean values are especially shown in the lowest budget size under 10.000 USD and the highest budget sizes abore 1. Mio. USD. By comparing smallest and biggest budget classes, the following conclusions can be drawn:
The assessed competition factors suggest that there is a rising competitive environment within the NGO sector. The rising demand for accountability, and the rising competition get the highest ratings in this cluster. It can be summarized:
- Small NGOs with a budget under 250.000 USD and especially under 10.000 USD find themselves strongly influenced by the general economic development and it’s resulting income reductions, through the increased bargaining power of donors and large foundations, as well as through social entrepreneurship.
- Large NGOs with budgets higher than 250.000 USD and especially over 1 million USD perceive an increased competition in the NGO sector and pressure for accountability.
NGOs agreed to the proposed strategic reactions in general. Strategies, such as the development of a specialized knowledge and of fundraising get the highest ratings in this cluster. It can be summarized:
- Small NGOs (with a budget under 250.000 USD and especially under 10.000 USD) prioritized measures of co-operation such as the pooling of resources, cooperations with NGOs and between NGOs and companies
- Large NGOs (with budgets higher over 250.000 USD and especially over 1 million USD) first put specializing their skills and by securing new sources of funding.
A comparison of the mean values of lowest and upper budget classes is presented in the figure below.
|RELEVANCE FOR NGOS|
| The presented findings can help NGOs to better adapt their strategy in a context of increasing competition. Large NGOs seem to prioritize fundraising measures and their positioning (uniqueness). In comparison to small NGOs seem to see higher importance in sharing resources, long-term co-operations with other NGOs and co-operations with the sector. According to the size of the NGOs the following strategic implications could be identified: