When Principles Meet Self-Interest: A Study of Mission Drift among Canadian NGOs.

Under what conditions do non-governmental organizations' (NGOs) principled and instrumental interests become opposed? Do INGOs choose to adopt policies that ensure organizational survival, or financial success, at the expense of mission? This paper examines the effect of an increased focus on financial performance on mission achievement among NGOs. I use resource dependence theory to test why and when NGOs suffer from mission drift, i.e. focusing so much on achieving financial and managerial demands that they lose sight of their organizational mission. Based on a survey of Canadian NGOs, I argue that NGOs which depend on few donors, that evolve in competitive environments, and/or that perceive themselves as performing poorly are more likely than other NGOs to experience mission drift. This research is significant practically because it can help mitigate undesired consequences generated through the competing incentives that NGOs face. It could also transform the relationship between NGOs and their funders and raise questions about current attempts to increase NGO financial accountability. Theoretically, this research contributes to the literature by examining the internal workings of NGOs and analyzing them as both principled and self-interested actors. [ABSTRACT FROM AUTHOR]