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Tell me your financing and I tell you who you are

Tell me your financing and I tell you who you are PurposeThis paper aims to identify criteria for the better targeting of public funding for private social activities and organizations. As a starting point, it proposes that financing strategies can characterize organizations which are positioned on a for-profit/non-profit continuum. The paper then analyses how far the effectiveness of public support systems depends on recipients’ general financing strategies.Design/methodology/approachThe study is based on data from a standardized small-scale survey. The analysis applies latent class analysis for the creation of a meaningful organizational dimension and applies them in an ordered logistic regression.FindingsDespite their variety along a for-profit/non-profit continuum, organizations in the sample can be described by three meaningful dimensions, and the focal role of organizations’ financing strategies can be confirmed. Repeated project-based public support might create a harmful dependence on this kind of funds. To be effective, it needs to be targeted at nascent socially effective organizations with non-solvent clients.Practical implicationsRecognition of different financing strategies as meaningful characteristics of organizations with consequences for their long-term development is of direct practical relevance for a better design and targeting of financing systems in general and public support systems in particular.Originality/valueAlthough the focal relevance of financing for the characterization of (social) organizations has been stressed before, the paper is able to operationalize the idea and to demonstrate its value in an application to the evaluation of project based support. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Social Enterprise Journal Emerald Publishing

Tell me your financing and I tell you who you are

Social Enterprise Journal , Volume 13 (1): 25 – Feb 6, 2017

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References (30)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1750-8614
DOI
10.1108/SEJ-08-2016-0040
Publisher site
See Article on Publisher Site

Abstract

PurposeThis paper aims to identify criteria for the better targeting of public funding for private social activities and organizations. As a starting point, it proposes that financing strategies can characterize organizations which are positioned on a for-profit/non-profit continuum. The paper then analyses how far the effectiveness of public support systems depends on recipients’ general financing strategies.Design/methodology/approachThe study is based on data from a standardized small-scale survey. The analysis applies latent class analysis for the creation of a meaningful organizational dimension and applies them in an ordered logistic regression.FindingsDespite their variety along a for-profit/non-profit continuum, organizations in the sample can be described by three meaningful dimensions, and the focal role of organizations’ financing strategies can be confirmed. Repeated project-based public support might create a harmful dependence on this kind of funds. To be effective, it needs to be targeted at nascent socially effective organizations with non-solvent clients.Practical implicationsRecognition of different financing strategies as meaningful characteristics of organizations with consequences for their long-term development is of direct practical relevance for a better design and targeting of financing systems in general and public support systems in particular.Originality/valueAlthough the focal relevance of financing for the characterization of (social) organizations has been stressed before, the paper is able to operationalize the idea and to demonstrate its value in an application to the evaluation of project based support.

Journal

Social Enterprise JournalEmerald Publishing

Published: Feb 6, 2017

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