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Why pay NGOs to involve the community?

Burger, Ronelle; Dasgupta, Indraneel; Owens, Trudy


Ronelle Burger

Indraneel Dasgupta


We examine the case for donors providing financial incentives to, i.e. subsidizing, NGOs to increase community participation. We show that the introduction of such a ‘participation subsidy’ may reduce beneficiary welfare. Thus, eliminating community participation from the set of conditions for funding an NGO may in fact benefit target communities. We show how our theoretical analysis may be operationalized by applying it to data from the NGO sector in Uganda. Our empirical findings appear to reject the case for providing a participation subsidy in that context.


Burger, R., Dasgupta, I., & Owens, T. (2015). Why pay NGOs to involve the community?. Annals of Public and Cooperative Economics, 86(1),

Journal Article Type Article
Acceptance Date Oct 16, 2014
Online Publication Date Feb 9, 2015
Publication Date Mar 1, 2015
Deposit Date Nov 7, 2016
Publicly Available Date Nov 7, 2016
Journal Annals of Public and Cooperative Economics
Print ISSN 1370-4788
Electronic ISSN 1467-8292
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 86
Issue 1
Keywords Regulation of non-governmental organizations, developing countries, community participation, Uganda
Public URL
Publisher URL;
Additional Information This is the peer reviewed version of the following article: Burger, R., Dasgupta, I. and Owens, T. (2015), Why pay NGOs to involve the community?, which has been published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.


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