Budgeting in International Humanitarian Organizations

International humanitarian organizations (IHOs) prepare a detailed annual allocation plan for operations that are conducted in the countries they serve. The annual plan is strongly affected by the available financial budget. The budget of IHOs is derived from donations, which are typically limited, uncertain, and to a large extent earmarked for specific countries or programs. These factors, together with the specific utility function of IHOs, render budgeting for IHOs a challenging managerial problem. In this paper, we develop an approach to optimize budget allocation plans for each country of operations. Academic/practical relevance: The current research provides a better understanding of the budgeting problem in IHOs given the increasing interest of the operations management community for nonprofit operations. Link to the article

KESHVARI FARD, M., LJUBIC, I. and PAPIER, F. (2022). Budgeting in International Humanitarian Organizations. Manufacturing & Service Operations Management, 24(3), pp. 1562-1577.

Keywords : #international-humanitarian-organization, #earmarked-donations, #budgeting, #nonlinear-stochastic-programming, #generalized-Benders-decomposition