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Spatial Differences in the Founding Pattern of Nongovernmental Organizations and Not-for-Profit Companies


This study compares the need of the communities, the availability of financial resources for the organizations, and the density of existing organizations on NGOs' and NFCs' founding behavior in Nepal between 2012 and 2018. The study uses negative binomial regression models to demonstrate that NGOs and NFCs emerge in relatively prosperous areas than serving the communities with need. Furthermore, the density of similar organizations also affected where NGOs and NFCs emerge. This research also demonstrates that night time light data can serve as a reliable alternative proxy for measuring the communities' well-being and wealth at the subnational level in developing countries.

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  1. We are extremely grateful for indicating the different ways of looking at NFCs. We took these different ways of understanding NFCs and conducted few interviews with the leaders of NFCs.

    We conducted four in-depth interviews with four leading NFCs of Nepal after getting the feedback from the reviewers to better understand the position of the NFC founders. All four co-founders of NFCs had also an experience of leading NGO in Nepal. Nepali NFCs most closely fit with the second way suggested by the reviewer. NFCs are rather a new technology serving the same needs as NGOs and feeding from the same resource pool. The rate of NFC registration is on the rise because government is getting tougher and tougher on existing NGOs in mobilization foreign aid. There are several bureaucratic hurdles in acquiring donations and funding from abroad. Even if any NGO gets any international funding, there even greater hassles to coordinate with local government agencies. As a result, all four interviewees agreed that NFCs are rather new way of organizing to meet the same needs as NGOs and feed from the same resource pool, yet, face relatively lesser bureaucratic hurdles in implementing projects with assistance from international funding agencies.

  2. Weidmann and Schute (2017) study covers 39 countries including Nepal. The countries included in the study are Albania, Angola, Bangladesh, Bolivia, Burkina Faso, Burundi, Cambodia, Cameroon, Colombia, Congo Democratic Republic, Dominican Republic, Egypt, Ethiopia, Ghana, Guinea, Guyana, Haiti, Honduras, Indonesia, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Moldova, Morocco, Mozambique, Namibia, Nepal, Nigeria, Pakistan, Peru, Philippines, Rwanda, Senegal, Swaziland, Tanzania, and Zimbabwe.

  3. Kathmandu Valley comprises of three districts: Kathmandu, Bhaktapur, and Lalitpur. The valley is called the capital city of the country.


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Correspondence to K. C. Dipendra.

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Dipendra, K.C., Lorsuwannarat, T. Spatial Differences in the Founding Pattern of Nongovernmental Organizations and Not-for-Profit Companies. Voluntas 33, 524–537 (2022).

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  • Community need
  • Pragmatic actor
  • Density dependence theory
  • Nongovernmental organizations
  • Nepal