Segmentation Of Charitable Organizations in Ukraine Using Clustering Technology

Abstract

Charitable non-profit organizations are the basis of civilized society and represent the interests of citizens at various levels of social interaction. At the same time, their activities in Ukraine are still characterized by legislative irregularities, low quality of public information, and disorderly internal relations. The aim of the study is to identify the most influential clusters of charitable organizations operating in Ukraine and to form the preconditions for assessing their impact on economic policy and social stability in the country. The segmentation was carried out according to the criteria of human resources, charitable assistance received and administrative costs actually incurred. The input was data from the official reports of 20 charitable organizations, both international and local, which operate in Ukraine. The four-cluster model is built on the method of K-means with the assessment of the suitability of data using the Hopkins index (H statistics). The developed model demonstrated a high level of validity both in terms of correspondence between data and the stability of their structure. The results proved the existence in Ukraine of four clusters of charitable organizations, which differ in the scale of activities, the number of funds raised, the number of costs for their own maintenance, as well as the relationship between these indicators. The study also showed the existence in Ukraine of an influential cluster of local charities that are designed to address local social issues at the regional level. Such organizations should be the object of maximum support in government programs to regulate the non-budget sector in Ukraine, as well as the subject of academic research on their contribution to economic development.