Online Fundraising in the Human Services

SUMMARY

This paper examines emerging possibilities for use of the Internet in human service fundraising. Human service managers must compete for limited funds with their counterparts in educational, religious, health, and other nonprofit organizations. There is enormous potential for raising funds over the Internet; yet, this approach to resource development may not be appropriate or effective in some instances for certain human service agencies. The selection of fundraising approach must be consistent with the organizational context in which it is used. This paper provides examples of cases where use of the Internet may prove to be an effective method for human service fundraising. It also examines cases where use of the Internet may not be a good match for the organizational context, whether in terms of ethics or dollars raised.     

Does Fundraising Professionalization Pay?

Although fundraising organizations in the third sector have gone through a progressive professionalization process, it remains unclear whether this development has led to any financial benefits. This article focuses on the question of whether or not it pays off for fundraising organizations to invest in professionalization. The data for this study come from 165 organizations representing 45 percent of the Swiss fundraising market. We first propose the term “organizational fundraising capability” as a new construct for measuring the degree of professionalization and rationalization in fundraising management. We then analyze its relationship to overall net revenue from donations as well as the growth of net revenue from donations. Our analysis indicates that, in addition to organizational size measured by total revenue, revenue share from donations, and expansion strategy, fundraising capability makes an important contribution to explaining both an institution's net revenue from fundraising and the level of increase in net donations. The consequences for the development of professionalization and rationalization in fundraising are discussed.     

Canadian Leapfrog: From Regulating Charitable Fundraising to Co-Regulating Good Governance

The regulation of charitable fundraising is no longer just about the regulation of fundraising but about good governance, and increasingly involves co-regulatory regimes which blend elements of self- and state regulation. Canada??s charitable sector has undertaken a bold experiment in creating a comprehensive certification system for good governance, including fundraising, which reframes the target of regulation from the informed donor to the well-performing charity and has the ambitious goal of building a community of practice for self-improvement. At the same time, the federal government has introduced new guidance on fundraising that not only outlines accepted cost to revenue ratios but also specifies standards of good governance. It is an open question as to whether this new self- and state regulation will remain as dual systems or evolve into a hybrid co-regulatory regime in which government integrates sector certification into its own risk management.     

How Pervasive Are Abuses in Fundraising Among Nonprofits?

This article explores selected fundraising information for charitable nonprofits, asking whether widespread abuses might exist in this sector. After examining the pervasiveness of fundraising and its relation to mission, we show that a few nonprofits raise a majority of sector charitable revenues, and we present the ratio of funds raised to funds spent on fundraising by mission categories. We find that 72 percent of charitable nonprofits do not report direct fundraising expenditures, 5 percent of the active fundraising nonprofits obtain 90 percent of total funds raised, mission is related to a nonprofit's ability to raise funds, the median nonprofit spends about 9.6 percent of total raised funds for fundraising, and only one in five nonprofits hires a professional fundraiser. At least in terms of the measures used in this report, widespread abuses are not obvious.     

KIDS OR CASH? EXPLORING CHARTER SCHOOL RESPONSES TO DECLINING GOVERNMENT REVENUES

While the literature is extensive on school districts' revenue sources, less research has been done on the impact of donations on school district funds. In this paper, we extend the theoretical literature on crowding out of private donations by government grants for one type of nonprofit firm, namely charter schools. The theoretical model leads us to focus on the key relationships among fundraising effort, enrollment (which is tied to federal and state funding) and donations. Using a dataset on Texas charter schools we adopt a two-stage approach to examine the empirical relationship between changes in nondonor revenues and the donations received by charter schools. Like the extensive empirical estimates of the effects of government grants on donations for other types of nonprofit firms, we find evidence of crowding-out with respect to our sample of charter schools. We also find a significant, positive effect of fundraising on donations with a $1 increase in fundraising associated to a $0.58 increase in donations, a pattern consistent with overinvestment in fundraising. Enrollments exhibit a robust inverse relationship to changes in nondonor revenues. (JEL H00, H32, H50)     

Early Fundraising by Nonincumbent Female Congressional Candidates

Abstract

This study investigates the effects of early contributions by women's PACs to female nonincumbent U.S. House candidates. The results show that women's PACs give early money disproportionately to female Democrats. This advantage provides female Democrats with greater success in raising later funds and in gaining electoral support than nonincumbent female Republicans.     

Regulation of US Charitable Solicitations Since 1954

A major shift in the climate for the solicitation of charitable donations in the United States occurred in the second half of the twentieth century. Starting with legislation passed by the Legislatures of New York and Massachusetts in 1954 and eventually including 40 largely similar laws in force today, state governments grew to playing a predominant part in the regulation of appeals for public support for charitable activities. State regulators, voluntary oversight and advocacy groups, accounting standards-setting bodies, and the data-collection activities of the Internal Revenue Service all influenced the development of the body of regulations which now shape the process of seeking support for nonprofits?? work. This article summarizes the effect of earlier innovations in the field of fundraising and then examines the interplay of public and private actors in the course of the creation of the present regulatory climate.     

Phrasing the Charitable Bequest Inquiry

This paper reports interest levels associated with twenty-three different phrasings of a request to leave a gift to charity in a will among 9964 survey respondents. Previous research suggests that a review of one’s life story may be an important component of bequest decision-making. Other findings suggest that mortality reminders may increase support for social norms and the pursuit of symbolic immortality. The attempts to reference symbolic immortality tested here were not effective. However, results supported avoiding extraneous death terms (“that will take effect at my death”) and using social norms (“many people like to leave a gift to charity in their wills”). The strongest support arose for the addition of the phrase “to support causes that have been important in their/your life/lives” to explain either the respondent’s or the social norm exemplars’ intent in making such a gift. Among common terms, “a gift to charity in your will” generated greater interest than substitute terms such as “bequest,” “leave a legacy” or “remember your favorite charities.”

     

Human Rights-Based Child Sponsorship: A Case Study of ActionAid

Many NGOs which focus on development have operated child sponsorship programs due to their effectiveness in raising funds. Existing studies offer a critique of child sponsorship as a de-humanizing marketing strategy and as a targeted service provision. Some NGOs have revised their child sponsorship by integrating it with a rights-based approach (RBA), which emerged rejecting the individual focus and disempowering process of development intervention. The objection of other RBA NGOs to child sponsorship leaves questions about whether child sponsorship can fit an RBA. The aim of the present study is to explore how child sponsorship is perceived and practiced in relation to an RBA in an NGO. The findings from a case study of ActionAid present how an RBA guides ActionAid’s child sponsorship to promote empowerment, campaigning, solidarity and alternatives. This study identifies the potential of an RBA to address problematic marketing and operational practices of child sponsorship as well as remaining issues. The complexity of NGO practices when aligning organizational practices with an RBA warrants further examination.

     

The Social-Entrepreneurship Advantage: An Experimental Study of Social Entrepreneurship and Perceptions of Nonprofit Effectiveness

A common assertion in the nonprofit literature is that nonprofit organizations can become more efficient, effective, and sustainable by embracing social entrepreneurship in their operational and strategic posture. In this article, we examine whether the mere label of social entrepreneurship results—with no actual organizational differences—in an increase in positive attributions associated with a nonprofit organization, an effect we call the social entrepreneurship bias. We experimentally test for the existence of a social entrepreneurship bias by examining how the label of social entrepreneurship alters how people judge a nonprofit’s effectiveness and decide how to allocate scarce donation funds.

     

Testing the Effectiveness of Fundraiser Job Titles in Charitable Bequest and Complex Gift Planning

Traditional fundraiser job titles are often institution centered, focusing on the benefits of fundraising as “institutional advancement” or “institutional development.” Such institution‐centered job titles may not be as effective with donors given the modern shift toward donor‐centered philanthropy. Alternative job titles can be gift centered (for example, “major gifts”) or donor centered (for example, “donor advising”). A survey of 3,188 respondents tested sixty‐three job titles in four charitable scenarios: a charitable bequest gift, a gift of stock, a gift of real estate, and a charitable gift annuity. Measured by which person donors would be more likely to contact to discuss each donation, the worst‐performing titles were the traditional institution‐focused fundraiser job titles, in particular those using “advancement,” “institutional advancement,” or “development.” This was also true when examining only respondents who had made large gifts ($500+) to a charity. Traditional institution‐focused job titles are both the most commonly used and the worst performing. Nonprofit managers may do well to consider the donor's perspective when selecting job titles for fundraisers rather than following traditional industry practices.     

Different or Equal Treatment? Donor Priority Strategy and Fundraising Performance Assessed by a Propensity Score Matching Study

Many nonprofit organizations apply a priority strategy to their donors instead of treating donors equally. The underlying assumption of this strategy is that different and preferential treatment of donors according to their donation amount positively affects fundraising performance. We conducted a propensity score matching study to analyze the fundraising strategies of seventy‐three cultural organizations in Germany. The empirical findings are discussed and complemented by qualitative data from twenty interviews with fundraising managers and private donors. The results show that, in terms of fundraising performance, nonprofit organizations that apply a donor priority strategy outperform organizations that treat donors equally. A donor priority strategy ultimately leads to a 125 euro higher total revenue per donor and an 87 euro higher profit per donor due to cost savings via better use of fundraising resources.     

Prayer and Charitable Behavior

Abstract

I propose a theoretical framework to understand how prayer influences charitable volunteering and financial giving. Drawing on work from symbolic interaction and cognitive psychology, I argue that individuals’ concepts of divine others become more cognitively accessible during the act of prayer. Because most people attribute the characteristics of omniscience and the desire for humans to help others to divine others, people are more likely to help known and unknown others the more cognitively accessible divine other concepts are to them. This lead to the prediction that frequency of prayer will be positively and linearly association with the frequency of volunteering, frequency of giving money to charity, and amount of money given to charity in a year. Using data from the General Social Survey, I find evidence for my argument. Frequency of prayer is positively and linearly associated with these charitable behaviors, even after controlling for other religiosity and sociodemographic variables.     

A review of tree root conflicts with sidewalks,curbs, and roads

Literature relevant to tree root and urban infrastructure conflicts is reviewed. Although tree roots can conflict with many infrastructure elements, sidewalk and curb conflicts are the focus of this review. Construction protocols, urban soils, root growth, and causal factors (soil conditions, limited planting space, tree size, variation in root architecture, management practices, and construction materials) are discussed. Because costs related to sidewalk and curb damage are substantial, a review of research addressing repair, mitigation, prevention, and litigation costs is included. Finally, future research needs are discussed.

Potential for conflicts between trees and sidewalks/curbs is high when one or more of these factors are present: tree species that are large at maturity, fast growing trees, trees planted in restricted soil volumes, shallow top soil (hard-pan underneath top-soil), shallow foundations underneath the sidewalk (limited or no base materials), shallow irrigation, distances between the tree and sidewalk of less than 2.0–3.0 m., trees greater than 15 to 20 years old.

The results of this survey indicate that cities are spending substantial sums of money to address conflicts between street tree roots and infrastructure. It can be inferred that most of these expenditures are spent dealing with problems that already exist. However, this raises the question: How much is being spent now to ensure that conflicts are minimized in the future?

Future research should concentrate on plant factors, site design, and construction of sidewalks and curbs. Also, more knowledge is needed about interactions between root growth and management techniques, such as pruning and irrigation. Finally, there is need for studies that will assist policy-makers to efficiently allocate funds among repair, mitigation, prevention, and legal remedies.

     

The Ideological Convergence of Civil Society Organizations and Newspapers in Turkey

This study investigates the extent to which newspapers are polarized in representing civil society organizations in Turkey. In examining the news in 15 printed newspapers and 2 online newspapers in 2017, we found that (1) 1499 associations and 499 foundations were mentioned but not equally distributed across the newspapers, (2) Turkish newspapers’ coverage of associations/foundations was affected by the type of association/foundation (religious/conservative vs. secular) and newspaper (pro-government vs. anti-government), (3) when news about an association/foundation appeared in pro-government newspapers, it did not appear in anti-government newspapers, and vice versa, and (4) secular associations/foundations were covered more often by anti-government newspapers than by pro-government newspapers. We therefore argue that in countries such as Turkey, where civil society organizations have historically been closely allied with state or political ideologies, newspapers’ political stances affect the media coverage of civil society organizations.

     

The Effects of Nonprofit Reputation on Charitable Giving: A Survey Experiment

A nonprofit’s reputation is a crucial intangible asset that can bring significant benefits to the organization. Using a multidimensional framework, this study tested the effects of three dimensions of nonprofit reputation—financial efficiency, media visibility, accreditation status—on charitable giving behavior. The findings of this 2 × 2 × 2 full-factorial survey experiment show that each of the reputation dimensions has a significant individual effect on giving behavior. Furthermore, financial efficiency and accreditation status have an interaction effect on giving behavior. The findings also demonstrate the cross-level interaction between financial efficiency and the real-life giving behavior of individuals and between accreditation and the real-life volunteering behavior. This study provides implications for our understanding of the components of nonprofit reputation and their impact on charitable giving.

     

Investigating Philanthropy Initiatives in Chinese Higher Education

Chinese public education have long been considered to be part of the social safety net, but this safety net is no longer sufficient for today’s higher education needs. The recent worldwide economic recession, the increasing cost of operation of higher education, decreasing enrollments, and government budget cuts have prompted administrators to act aggressively. This study selected a public institution in Asia Pacific–Pacific region to assess its fundraising practice, strategy, and accountability. This university is one of the few institutions in the region that successfully initiated a fundraising practice. The study found that establishing an appropriately staffed professional fundraising office is an important step. Preferably, these officers should be hired from the business and non-academic sectors. Workshops and job training should be offered rigorously. The university must set a clear fundraising goal, and the fundraisers must possess strong marketing and communication skills, understand their products, academic needs, and be able construct social networks in Asia Pacific.     

Nonprofit fundraising with virtual reality

An increasingly competitive fundraising environment and the new media ecosystem have prompted nonprofit organizations to strengthen their digital marketing capabilities. Recently, a few nonprofits have used virtual reality (VR) technology in fundraising, which raises questions about its effectiveness. Does VR work, and if so, through what psychological mechanisms? Through a lab experiment, the usefulness of VR as a digital fundraising tool was investigated. Specifically, we compared the media effects of experiencing the same fundraising video on two different devices: (a) a head‐mounted VR and (b) a tablet. The results revealed that donation intention, perceived vividness, perceived interactivity, and social presence were all significantly greater with the VR medium than with the tablet medium. Next, we tested and successfully verified the mediation effect of social presence on donation intention. Finally, we verified that a viewer's sensation‐seeking tendency served as a moderator when the device type influenced donation intention. Specifically, the media effects of VR were stronger for high sensation seekers than for low sensation seekers. This study contributes to theory and research by verifying the VR fundraising effect and identifying the key role of social presence, and it also provides important managerial guidelines for media design in VR fundraising campaigns.     

An empirical assessment of the effect of professionalism on cynicism among prison guards

Prison guards have generally escaped social science inquiry. Although the prison guards’ officially prescribed role (custody and security) is straightforward, part of the problem is their isolation from the free society and the danger and uncertainty surrounding their work. One attitude that is potentially emergent in this problematic environment is cynicism. To minimize the effects of cynicism on prison guards, correctional agencies have devised and implemented a plan of professionalization, which is characterized by a concern for higher standards in all areas and improved benefits and working conditions. Our focus was evaluating the effect, if any, professionalism has on cynicism.

Analysis of data derived from 144 prison guards showed that the relationship between professionalism and cynicism is complex. Generally, only one professionalism dimension—sense of calling to the field—reduced a prison guard's cynicism. Effects of other professionalism dimensions on cynicism ranged from negligible to moderate.