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

Abstract

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.