Cluster analysis of charitable organizations of Ukraine using K-means technology
Cluster analysis of charitable organizations of Ukraine using K-means technology

Summary/Abstract: The work is devoted to the issue of segmentation of charitable organizations forstructuring the sector of non-profit organizations of Ukraine using cluster analysis tools usingsoftware R for automated data processing. The four-cluster and five-cluster models wereconstructed using the K-means method, the suitability for clustering of which was checked usingthe Hopkins’ Index (H statistics). The developed four-cluster model demonstrated a significantlevel of validity in terms of correspondence between data and the stability of their structure. Thebasic indicators of financial and economic activity of charitable organizations were used ascriteria for clustering: the number of staff, charitable assistance received and funds spent on themaintenance of the organization in the reporting period. It was found that the clusters ofcharitable organizations of Ukraine differ in the scale of activity, the number of funds raised, thenumber of costs for their own maintenance and the relationship between these indicators. Thestudy demonstrated the existence in Ukraine of the most influential cluster of local charities thataddress social issues exclusively at the regional level, due to the small financial resourcesinvolved to support their activities. Such organizations are system-creating for the entire nonprofit sector in Ukraine, their importance is manifested in the most rapid response to the needsof recipients through the implementation of small charitable projects.

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