Application of MCDA Methods in the Performance Evaluation of Public Benefit Organisations

• Authors: Chojnacka, Ewa , Górecka, Dorota

Abstracts

EN

The paper presents the issue of assessment of efficiency and effectiveness in organisations operating for public benefit. Taking into consideration the important role of those entities in the economy and specific conditions in which they operate, a new type of evaluation tools is needed. Therefore, the main aim of this paper is to propose such a new assessment instrument based on outranking multi-criteria decision aiding (MCDA) methods. The procedure proposed is used in a real-life scenario connected with the appraising process of eleven Public Benefit Organisations (PBOs) from Lodz Voivodeship in Poland, operating in the field of ‘Ecology, animals and heritage protection’, and eleven charities from Western Australia whose main activity is ‘Animal Protection’. Rankings obtained as a result of the presented approach can serve a potential donor as a pointer for making better decisions regarding financial support.

Keywords

EN

public benefit organisations; performance evaluation; charities; reporting, MCDA; outranking methods

• Publisher: Wydawnictwo Uniwersytetu w Białymstoku
• Journal: Optimum. Studia Ekonomiczne
• Year: 2017
• Volume: 3(87)

Dates

published

2017

Contributors

author

Chojnacka, Ewa

author

Górecka, Dorota

References

• Act of law of April 24th 2003 on Public Benefit and Volunteer Work, Ustawa z dnia 24 kwietnia 2003 r. o działalności pożytku publicznego i o wolontariacie, Dz. U. 2003 nr 96, poz. 873 z późn. zm.
• Charities Act 2013 No. 100, 2013. An Act to Define Charity and Charitable Purpose, and for Related Purposes.
• Charity Tax Concessions Available, Australian Government, ACNC, https://www.acnc.gov.au/ACNC/Register_my_charity/Why_register/Reg_Tax_conc/ACNC/Edu/Char_con_avail.aspx (access: 15.11.2016).
• Charity Navigator – Your Guide to Intelligent Giving, http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=2181 (access: 10.10.2016).
• Chojnacka E., Górecka D., 2016, Evaluating Public Benefit Organisations in Poland with the EVAMIX Method for Mixed Data, “Multiple Criteria Decision Making”, 11, 36-50, doi: 10.22367/mcdm.2016.11.03.
• Cortis N., Lee I., Powell A., Simnett R., Reeve R., 2015, Australian Charities Report 2014, Centre for Social Impact and Social Policy Research Centre, UNSW Australia, 13.
• Dyczkowski T., 2015a, Mierniki dokonań organizacji pożytku publicznego. Możliwości i ograniczenia stosowania, “Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu”, 398, 146-158.
• Dyczkowski T., 2015b, Financial and Non-Financial Information in Performance Assessment of Public Benefit Organizations, “Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu”, 398.
• Elementarz III sektora 2005, (ed.) Gałązka A., Klon/Jawor, 19-20, http://www.ngo.pl/files/biblioteka.ngo.pl/public/ksiazki/Klon/elementarz_III_sektora.pdf (access: 29.11.2016).
• Figueira J., Roy B., 2002, Determining the Weights of Criteria in the ELECTRE Type Method with a Revised Simos’ Procedure, “European Journal of Operational Research”, 139(2).
• Frumkin P., Kim M.T., 2001, Strategic Positioning and the Financing of Nonprofit Organizations: Is Efficiency Rewarded in the Contributions Marketplace?, “Public Administration Review”, 61(3).
• Górecka D., 2009, Wielokryterialne wspomaganie wyboru projektów europejskich, TNOiK „Dom Organizatora”, Toruń.
• Górecka D., 2010, Zastosowanie metod wielokryterialnych opartych na relacji przewyższania do oceny europejskich projektów inwestycyjnych [in:] Metody i zastosowania badań operacyjnych’10, (ed.) M. Nowak, Wydawnictwo Uniwersytetu Ekonomicznego w Katowicach, Katowice.
• Górecka D., 2011, On the Choice of Method in Multi-Criteria Decision Aiding Process Concerning European Projects [in:] Multiple Criteria Decision- Making’10-11, (eds.) T. Trzaskalik, T. Wachowicz, Publisher of The University of Economics in Katowice, Katowice.
• Górecka D., 2012, Applying Multi-Criteria Decision Aiding Techniques in the Process of Project Management within the Wedding Planning Business, “Operations Research and Decisions”, 4(22).
• Górecka D., 2014, Metody PROMETHEE [in:] Wielokryterialne wspomaganie decyzji. Metody i zastosowania, (ed.) T. Trzaskalik, PWE, Warszawa.
• Górecka D., 2015, Zastosowanie metod wielokryterialnych w procesie ubiegania się o akredytację międzynarodową AACSB [in:] Badania operacyjne. Przykłady zastosowań, (eds.) J.B. Gajda, R. Jadczak, Wydawnictwo Uniwersytetu Łódzkiego, Łódź.
• Górecka D., Muszyńska J., 2011, Analiza przestrzenna innowacyjności polskich regionów, “Acta Universitatis Lodziensis. Folia Oeconomica”, 253.
• Górecka D., Pietrzak M.B. 2012 Zastosowanie metody PROMETHEE II w procesie rankingowania projektów europejskich w ramach Regionalnego Programu Operacyjnego Województwa Kujawsko-Pomorskiego na lata 2007-2013, “Studia Ekonomiczne, Modelowanie Preferencji a Ryzyko’12, Zeszyty Naukowe Uniwersytetu Ekonomicznego w Katowicach”.
• Górecka D., Szałucka M., 2013, Country Market Selection in International Expansion Using Multicriteria Decision Aiding Methods, “Multiple Criteria Decision Making”, 8, 31-55.
• Handbook on Non-Profit Institutions in the System of National Accounts, 2003, United Nations, Studies in Methods, Series F., No. 91, http://unstats.un.org/unsd/ publication/seriesf/seriesf_91e.pdf (access: 01.12.2016).
• Hinkle D., 1965, The Change of Personal Constructs from the Viewpoint of a Theory of Construct Implications, Ph.D. Dissertation, Ohio State University, Ohio.
• Hokkanen J., Salminen P., 1994, The Choice of a Solid Waste Management System by Using the ELECTRE III Decision-Aid Method [in:] Applying Multiple Criteria Aid for Decision to Environmental Management, (ed.) M. Paruccini, Kluwer Academic Publishers, Dordrecht.
• Hokkanen J., Salminen P., 1997, Choosing a Solid Waste Management System Using Multicriteria Decision Analysis, “European Journal of Operational Research”, 98(1).
• Information on the Register: Understanding Financial Information, Australian Government, ACNC, http://www.acnc.gov.au/ACNC/Reg/understanding_financial.aspx (access: 06.12.2016).
• Mousseau V., 1995, Eliciting Information Concerning the Relative Importance of Criteria [in:] Advances in Multicriteria Analysis, (eds.) P.M. Pardalos, Y. Siskos, C. Zopounidis, Kluwer Academic Publishers, Dordrecht.
• Rogers M., Bruen M., 1998, A New System for Weighting Environmental Criteria for Use within ELECTRE III, “European Journal of Operational Research”, 107(3).
• Salamon L.M., Sokolowski S.W., Haddock M.A., Tice H. S., 2013, The State of Global Civil Society and Volunteering: Latest Findings from the Implementation of the UN Nonprofit Handbook, Working Paper No. 49, March, The Johns Hopkins Center for Civil Society Studies, Baltimore.
• Salamon L.M., Anheier H.K., 1992, In Search of the Nonprofit Sector II: The Problem of Classification, Working Papers of the Johns Hopkins Comparative Nonprofit Sector Project, no. 3, The Johns Hopkins Institute for Policy Studies, Baltimore.
• Salamon L.M., Anheier H.K., 1996, The International Classification of Nonprofit Organizations: ICNPO-Revision 1, Working Papers of the Johns Hopkins Comparative Nonprofit Sector Project, no. 19, The Johns Hopkins Institute for Policy Studies, Baltimore.
• Sektor non-profit w 2014 2016, Główny Urząd Statystyczny, Studia i Analizy Statystyczne, Warszawa, http://stat.gov.pl/obszary-tematyczne/gospodarka-spoleczna-wolontariat/gospodarka-spoleczna-trzeci-sektor/sektor-non-profit-w-2014-r-,1,5.html (access: 27.10.2016).
• Trussel J.M., Parsons L.M., 2008, Financial Reporting Factors Affecting Donations to Charitable Organizations, “Advances in Accounting”, 23.
• Voogd H., 1982, Multicriteria Evaluation with Mixed Qualitative and Quantitative Data, “Environment and Planning B”, 9.
• Waniak-Michalak H., Zarzycka E., 2012, Performance Measurement of Public Benefit Organizations on the Basis of Information from Financial Statements and Its Influence on Their Results, “Zeszyty Teoretyczne Rachunkowości”, 68(124).
• Żak P., 2012, Public Benefit Status in Poland, Ogólnopolska Federacja Organizacji Pozarządowych, Public Benefit Status in V4 countries and Germany - conference in Prague 21.09.2012, http://ofop.eu/sites/ofop.eu/files/biblioteka-pliki/pzak_ public_benefit_and_ngo_in_poland_20120921.pdf (access: 15. 06.2016).

Identifiers

URI

http://hdl.handle.net/11320/6040

DOI

10.15290/ose.2017.03.87.07