ExpertACCA · Question 30 · Performance measurement and control
Section B - Case 3: GlobalCare
GlobalCare is an international NGO focused on providing clean drinking water in developing nations.
GlobalCare's donors often look at 'League Tables' published by charity watchdogs, which rank NGOs based on the percentage of donations spent directly on programs versus administration.
What is a common criticism of using league tables to evaluate public sector or NGO performance?
Section B - Case 3: GlobalCare
GlobalCare is an international NGO focused on providing clean drinking water in developing nations.
GlobalCare's donors often look at 'League Tables' published by charity watchdogs, which rank NGOs based on the percentage of donations spent directly on programs versus administration.
What is a common criticism of using league tables to evaluate public sector or NGO performance?
Answer options:
They are too complex for the general public to understand.
They can encourage dysfunctional behavior, such as misclassifying admin costs as program costs to improve rankings.
They focus entirely on qualitative data and ignore financial metrics.
They prevent organizations from benchmarking against each other.
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