Strategy development in humanitarian NGO positioning and the rise of FCOs

Book excerpt: As competition over donations for humanitarian aid projects intensifies, traditional German NGOs come under additional pressure from an unlikely side: A new breed of aggressively expanding market entrants monopolizes distribution channels, thus obtaining a significant market share. Lacking any own aid projects, however, these organizations distribute the raised donations to traditional NGOs. This unusual set-up leaves NGO executives searching for a strategic response: While the new competitor’s funding is clearly a welcome treat, the competitive aspect is much less pleasing. This study revisits contemporary approaches to positioning strategy formulation, deducing a systematization of fundraising campaign organizations (FCOs) and offering helpful recommendations for NGO executives.