Relationship Between Transparency and Efficiency in the Allocation of Funds in Nongovernmental Development Organizations

Abstract In recent years, nonprofit organization performance has become increasingly important. Researchers have developed separate studies of organizational transparency and economic efficiency. However, to date, little research relates both aspects or analyzes the potential of transparency to increase or reduce an organization’s efficiency. The goal of this article is to shed light on this question by investigating Spanish nongovernmental development organizations. The authors distinguish nine variables to measure the transparence. An empirical analysis of 62 nongovernmental development organizations reveals that the variables more associated with use of funds are relate positively to efficiency, though not to the same degree.