Abstract

Non-profit organizations are facing growing pressure to become more performance oriented. The existence of a rising number of NPOs and the scarcity of fund sources is an increasingly worrying scenario. Our case study examines the experiences of three non-governmental development organizations and discusses the possible existence of a relationship among fund sources and organizational performance. Non-profits are gradually required to respond to performance measurement directives and their fund sources may be scarce, in terms of quantity and diversity. Two central findings emerged from interviews and document analysis. First, there is a relationship between funds and performance, additional/greater funds positively influence organizational performance. Second, funds diversity play a critical role on performance, diversification of funds sources reduces the dependence of organizations and consecutively improves their performance.