The marketing capabilities of non-profit organisations and its performance

Abstract: This thesis is based on a quantitative study that is conducted by comparing the fundraising effectiveness of humanitarian non-profit organisations (NPOs) to their program expenditure. The fundraising effectiveness of NPOs is derived from fundraising expenses over donations received. Using two hypotheses that were developed using literature revolving around capabilities, with a special focus on marketing capabilities, and performance measurements of NPO, we implement these findings to investigate how marketing capabilities can be linked with the performance of humanitarian NPOs. This was done through a deductive approach by analysing data from the financial statements of NPOs. The data that was found in these financial statements were used in a panel data regression and these results are then connected to the theory regarding marking capabilities and performance measurements of non-profit organisations. With the results that were derived from the panel data regression, a positive correlation between fundraising efficiency and the performance of NPOs. The results also reveal a diminishing marginal return with the performance of NPOs concerning the fundraising efficiency, meaning that an increase in fundraising efficiency for NPOs will only increase the performance to a certain point.