Technical Efficiency Of Social Foundations In A Multidimensional Context

Abstract

The paper is the first attempt at examining the technical efficiency and benchmarking the performance of 15 social foundations in the Philippines for the period 2000-2005 using the data envelopment analysis (DEA) model. The 65.55% of social foundations are operating at increased returns to scale, 4.45% at decreased returns to scale and 30% at constant returns to scale. Forty percent of firms are efficiently utilizing their expenses and the majority shows resource excesses (capital and labor). All firms show output deterioration for donations and total awards to beneficiaries. With the aid of the DEA tool, measurement of the efficiency of social foundations has been verified and proven as manageable and quantifiable from a multidimensional assessment. Results reveal the importance of technical efficiency assessment for the non-profit sector.