A benchmarking model for measuring the efficiency of a humanitarian aid program: a case study of an international NGO

This article presents a benchmarking model for measuring the efficiency of organizations that provide humanitarian aid. The model was developed and implemented in the framework of a large international aid program. The model is based on measuring the labor productivity of each organization that provides services and comparing it to the benchmark. Two main results came out from the estimation of the model: (a) there were positive economies of scale in the program meaning that larger organizations were inherently more efficient than smaller ones; (b) the source of the inefficiency was identified, not in the administrative part of the organization, but rather in the programmatic part.NGO; efficiency; cost-effectiveness; productivity

Guidelines for the preparation of budgets in not-for-profit organizations

In the absence of clear and acceptable measures for outcomes, the budget is probably the most important managerial tool for nonprofits. Nevertheless many nonprofits operate without a budget at all, or with a limited version of a budget that is used solely for fundraising with no managerial role. The purpose of this paper is to present guidelines for the preparation of budgets that can serve all the aspects of the organization's activity. More specifically the budget should provide the organization's management with tools for decision making, risk management, measuring efficiency and the ability to present a cleat picture of the organization's activities to internal and external stakeholders. The adoption of these guidelines may benefit both nonprofits and their donors. Nonprofits will be able to improve the way they manage their programs while donors will be able to get a clearer picture of the organization and to simplify their procedures for grant applications.nonprofits; management; budget; guide

Systematic Approach to the Allocation of Budgets for humanitarian Aid Programs: A Practical Tool for International NGOs

This article presents a model for budgetary allocation that was used by an international NGO for its aid program. The features of the model are explained and demonstrated. The model enables NGOs to allocate budgets based on impartial, objective and transparent criteria. It also presents explicitly the policy choices that face the NGO and allows staff and funders to evaluate the costs and benefits of their choices

Systematic Approach to the Allocation of Budgets for humanitarian Aid Programs: A Practical Tool for International NGOs

This article presents a model for budgetary allocation that was used by an international NGO for its aid program. The features of the model are explained and demonstrated. The model enables NGOs to allocate budgets based on impartial, objective and transparent criteria. It also presents explicitly the policy choices that face the NGO and allows staff and funders to evaluate the costs and benefits of their choices

A simple model for cash flow management in nonprofits

Cash flow management is one of the most significant challenges that face nonprofit organizations. A shortage is cash, even if it's temporary, is a major risk factor for the organization. Nevertheless the standard method for cash flow management – a cash flow projection - does not produce satisfactory results for nonprofits. The weak point of the cash flow projection method is that it ignores the inherent unpredictability of the income stream. This is a typical characteristic of the nonprofits sector, due to its reliance on income stream from donations and grants. In this article I present a simple simulation model that overcomes this problem. The simulation model connects between the cash flow and the accounting data. It enables the organization to assess its cash flow risk, and to analyze different scenarios that can eliminate the risk. The model was tested in several nonprofit organizations, and the article presents its implementation in one of them

A simple model for cash flow management in nonprofits

Cash flow management is one of the most significant challenges that face nonprofit organizations. A shortage is cash, even if it's temporary, is a major risk factor for the organization. Nevertheless the standard method for cash flow management – a cash flow projection - does not produce satisfactory results for nonprofits. The weak point of the cash flow projection method is that it ignores the inherent unpredictability of the income stream. This is a typical characteristic of the nonprofits sector, due to its reliance on income stream from donations and grants. In this article I present a simple simulation model that overcomes this problem. The simulation model connects between the cash flow and the accounting data. It enables the organization to assess its cash flow risk, and to analyze different scenarios that can eliminate the risk. The model was tested in several nonprofit organizations, and the article presents its implementation in one of them

A benchmarking model for measuring the efficiency of a humanitarian aid program: a case study of an international NGO.

This article presents a benchmarking model for measuring the efficiency of organizations that provide humanitarian aid. The model was developed and implemented in the framework of a large international aid program. The model is based on measuring the labor productivity of each organization that provides services and comparing it to the benchmark. Two main results came out from the estimation of the model: (a) there were positive economies of scale in the program meaning that larger organizations were inherently more efficient than smaller ones; (b) the source of the inefficiency was identified, not in the administrative part of the organization, but rather in the programmatic part

Guidelines for the preparation of budgets in not-for-profit organizations

In the absence of clear and acceptable measures for outcomes, the budget is probably the most important managerial tool for nonprofits. Nevertheless many nonprofits operate without a budget at all, or with a limited version of a budget that is used solely for fundraising with no managerial role. The purpose of this paper is to present guidelines for the preparation of budgets that can serve all the aspects of the organization's activity. More specifically the budget should provide the organization's management with tools for decision making, risk management, measuring efficiency and the ability to present a cleat picture of the organization's activities to internal and external stakeholders. The adoption of these guidelines may benefit both nonprofits and their donors. Nonprofits will be able to improve the way they manage their programs while donors will be able to get a clearer picture of the organization and to simplify their procedures for grant applications

Put your money where your mouth is

This article presents a method for nonprofits to calculate a budgetary allocation which is consistent with their strategic goals. The method is based on the application of Analytic Hierarchy Process (AHP) to budgetary allocation. A proposed index, which is based on a comparison between the calculated budgetary allocation and the actual one, can help nonprofits to determine the level of fit between their goals and their budgetary priorities

Put your money where your mouth is

This article presents a method for nonprofits to calculate a budgetary allocation which is consistent with their strategic goals. The method is based on the application of Analytic Hierarchy Process (AHP) to budgetary allocation. A proposed index, which is based on a comparison between the calculated budgetary allocation and the actual one, can help nonprofits to determine the level of fit between their goals and their budgetary priorities