Dual Effects of Professional Capacity and Organizational Resources on Public Service Delivery: Evidence from Chinese Philanthropic Organizations

Philanthropic organizations, as crucial intermediaries between the government and society, significantly contribute to public service delivery. This study examines how organizational features influence their effectiveness, especially exploring the impact of professional capacity and organizational resources. Based on the panel data of 259 philanthropic organizations in Shanghai from 2010 to 2022, we use two-way fixed effects models to examine the impact of professional capacity, financial scale, and annual income on public service delivery, as measured by the number of charitable projects, project expenditures, and the number of beneficiaries. The finding shows that professional capacity notably improves public service delivery. We also find that financial scale moderates the relationship, while annual income mediates it. The results advocate that policies should facilitate capacity building and resource support altogether to maximize philanthropic organizations’ contributions to public service delivery.