Effects of Motivation on Charitable Giving Practices: The Case of Korean American Immigrants

This study empirically evaluates the effects of motivation for philanthropic giving on distinct charitable practices of immigrants, namely ethnic donation versus mainstream donation. The study pays special attention to three major types of motives: rational motives, normative motives, and civic duty. Based on the Korean-American Philanthropic Survey, the study constructs a bivariate probit regression model to assess the relationship between motivation and charitable practices. South Korean immigrants’ ethnic donation and their mainstream donation were explained by different types of motives: Normative motives represented the primary explanatory factor for ethnic donation, and civic duty motives represented the key factor for mainstream donation. However, rational motives were related to neither form of donation. There was a negative relationship between mainstream donation and ethnic donation.

     

An Analysis of the Peer Effects in Charitable Giving: The Case of Taiwan

The purpose of this study was to utilize the data from the Survey on Family Income and Expenditure in Taiwan to investigate the influence of peer effects on the behavior of charitable giving. Based on the definitions of the reference group in this study, the estimation results suggested that peer effects on households' decisions on both whether to make charitable giving and how much to contribute were quite modest. The study also found that the price elasticity and the income elasticity of charitable giving in Taiwan were larger than those in the U.S., which may partially explain the low ratio of charitable giving to GDP in Taiwan. The earthquake in 1999 substantially increased the amount of charitable giving though its effect diminished after sometime.     

The Family Tribute in Charitable Bequest Giving

The propensity for charitable bequest giving is much lower than for current charitable giving. Some nonexperimental evidence suggests that this difference may be due to the relatively greater importance of family benefit considerations in charitable bequest giving than in current charitable giving. To test this concept experimentally, the effects of a family–charity conflict reduction message (that is, a reminder of family connections to a cause and an opportunity to make a tribute gift) are measured for both current and bequest giving. For those with family connections to a cause, the message generated increased interest in charitable bequest giving but not in current charitable giving. This result provides experimental support for previous suggestions regarding the special role of family considerations in charitable bequest giving. Managers may profitably consider the use of tribute messages to encourage bequest, but not necessarily current, charitable giving. Such messages were effective at increasing bequest intentions for all organization types and demographic groups tested, especially where the tribute was in honor of an ascendant such as a mother, grandmother, grandfather, or uncle.     

The Effects of Social Trust and Institutional Trust on Formal Volunteering and Charitable Giving in Japan

This study is part of the growing literature on the effects on civic engagement of attitudinal predictors, such as trust, along with structural predictors. Drawing data from the 2005 Japanese General Social Survey, it examines the association between trust and the probabilities of formal volunteering and charitable giving. A bivariate probit analysis of the data suggests that trust, institutional trust in particular, matters more to predict giving than volunteering. Although the number of membership affiliations is positively and significantly associated with both types of civic engagement, the association between membership affiliations and formal volunteering is significantly greater. Implications of these and other findings are discussed for future studies linking trust to civic engagement in group-collectivist societies such as Japan.     

Giving at Work: Exploring Connections Between Workplace Giving Campaigns and Patterns of Household Charitable Giving in the USA

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations - This research addresses an area of philanthropic study that is becoming an increasingly important revenue source for the...     

The Impact of Public Assistance Use on Charitable Giving: Evidence from the USA and China

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations - Public policy can directly or indirectly affect private philanthropy. Although previous studies have investigated the role...     

Determinants of Employee Creativity: A Survey of Lithuanian Nonprofit Organizations

Building on the current creativity literature, the authors developed and tested a model of employee creativity in a sample of Lithuanian nonprofit organizations. It was hypothesized that individual cognitive style, intrinsic motivation, leadership behaviors, job design, cultural norms of diversity, and work group relations would be related to employee creativity. Sixty nonprofit organizations were randomly sampled from the Database of Lithuanian Nonprofit Organizations and packets containing questionnaires were mailed to the organizations that agreed to participate. One hundred and twenty two questionnaires were returned out of 180 total (67.8% response rate). Results showed that innovative cognitive style, intrinsic motivation, and cultural norms for diversity were the most important predictors, explaining 41.5% of variance in employee creativity. Suggestions for hiring and staff development practices are provided along with implications for future research.     

Social Impact Investment Behavior in the Nonprofit Sector: First Insights from an Online Survey Experiment

This study investigates the social impact investment behavior of private investors in a nonprofit setting. In particular, the influences of three effects—financial return, social impact, and age—on social impact investment behavior are tested in an online survey experiment. The study sample includes bank clients (N = 145) from Germany’s first and largest bank exclusively focused on social and ecological investments. The results with regard to the financial return effects are in line with for-profit research that social impact investors are willing to accept 1% lower financial returns. In addition, younger philanthropists are more likely to contribute part of their money to social impact investments. Further findings reveal that the perceived innovativeness of the project has a consistently positive effect on social impact investment behavior. People with certain profile characteristics (e.g., entrepreneurial spirits) also are more likely to participate in social impact investments.     

Charitable Giving as a Luxury Good and the Philanthropic Sphere of Influence

Using regression analysis, 41 years of charitable giving and income data was evaluated to determine if charitable giving is a luxury, normal, or inferior good, and to determine the income elasticity for separate nonprofit sectors. Total Giving to the nonprofit subsector as well as most nonprofit sectors (Religion, Education, Human Services, and Environment) is a normal good, while Arts and International giving are likely luxury goods. However, evidence suggests that Health and Public Benefit are likely inferior goods. This research makes three contributions. First, it offers quantitative data as evidence in the supply-side and demand-side debates. Second, owing to income elasticities, researchers propose the Philanthropic Sphere of Influence and postulate that as incomes rise, donors are more likely to give to causes from which they are less likely to personally benefit. Third, by evaluating charitable giving as a whole and then by each subsector, the research demonstrates that each nonprofit subsector responds uniquely to changes in income. Therefore, nonprofit sectors should be evaluated separately.     

The Nonprofit Catallaxy: An Austrian Economics Perspective on the Nonprofit Sector

This paper examines the nonprofit sector from the perspective of the Austrian school of economic thought. In contrast to the traditional market failure approach, the Austrian school locates the role of the nonprofit sector in the facilitation of the spontaneous order and the utilization of local dispersed knowledge about the societal needs through a Hayekian “discovery procedure.” Another contribution of the Austrian school is in calling attention to the “calculation challenge” faced by the nonprofit sector, i.e., the reduced role of monetary signals as the informational basis for decision making. The calculation challenge brings up the important issue of societal feedback mechanisms operating in the nonprofit sector. It is shown that, in the nonprofit sector context, this challenge takes the form of the accountability problem.     

The French Nonprofit Sector: A Literature Review

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations -     

The Views of Nonprofit Executives on Educating Nonprofit Managers

Extraordinary nonprofit-sector expansion has produced organizations with complex missions and operations, and the managers responsible for their effectiveness require adequate preparation. Although no single degree program stands out as the clear preference of nonprofit executives, we propose that certain organizational characteristics are associated with the preference for specific degrees.     

Agency Problems between Managers and Employees in Nonprofit Organizations: A Discrete Choice Experiment

Most principal–agent literature of nonprofit organizations has focused on the relationship between board members and managers. However, in addition to the role as an agent of the board, the manager also performs a role as principal with respect to the nonprofit employees. By using a discrete choice experiment, we identify the objectives of managers and employees in nonprofit organizations and assess the presence of agency problems in this relationship. Our sample consists of 76 headmasters, 161 teachers, and 39 administrative employees in 74 secondary nonprofit schools in Belgium. We find that the six objectives set out in the experiment play an important role for both headmasters and subordinate staff. However, the results also indicate that some of these objectives are significantly more important for the headmasters. In sum, our results suggest that agency theory and stewardship theory are not necessarily in conflict with each other but can be combined into a more general governance framework for nonprofit organizations. Consequently, we argue that incentive structures that incorporate different types of objectives can facilitate the recruitment and retention of employees in nonprofit organizations.     

Examining the Association of Welfare State Expenditure,Non-profit Regimes and Charitable Giving

This paper explores cross-country variations in charitable giving and investigates the association of welfare state policies with private philanthropy. Hypotheses are drawn from crowding-out theory and considerations about the influence of a country’s mixed economy of welfare. We add to the on-going discussion concerning the crowding-out hypothesis with empirical evidence by looking at specific charitable subsectors people donate to across countries. Using Eurobarometer survey data that include 23 countries, we find no evidence for a crowding-out effect, but rather a crosswise crowding-in effect of private donations. Moreover, giving behaviour differs between non-profit regimes.     

Expectation,Commitment, and Charitable Giving: The Mediating Role of Trust and the Moderating Role of Social Status

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations - This study suggests that the expectation of an individual about the outcome of their charitable donating can guide their...     

The Effect of Social Information on Giving from Lapsed Donors: Evidence from a Field Experiment

Using data from an experiment carried out by a large nonprofit organization, this paper finds that lapsed donors who received a solicitation letter referencing a relatively high donation made by another donor (high social information) were more generous in giving, but overall less likely to make a donation, relative to the baseline (low social information) group. After using the propensity score matching to correct for pretreatment differences in the two experimental groups, the estimated effect of high social information on the average donation amount is an increase of $14.95 (45 %). However, high social information is also found to reduce the probability a lapsed donor will give by 4.1 %. Thus, high social information can have potentially offsetting effects when applied to lapsed donors. Nonprofits should consider this trade-off when employing social information fundraising techniques to solicit donations from lapsed donors.     

The Effects of United Way Membership on Employee Pay in Nonprofit Organizations

This research investigates the relationship between United Way membership and the compensation level of employees in nonprofit organizations. This study is based on questionnaires completed by 1,811 employees from sixty‐nine nonprofit agencies in a large metropolitan area. Managerial capitalism, agency theory, and United Way funding and governance roles were used to develop the hypotheses. We found that employees of organizations belonging to the United Way receive pay premiums, suggesting that the United Way member agencies are higher‐quality agencies that pay their employees higher wages.     

The Nonprofit Sector and the Informal Sector: A Theoretical Perspective

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations - How do and why might different nations demarcate socioeconomic activity into distinct societal sectors? In this review and...     

Effective Nonprofit Management: The Leadership Factor

The Price of Virtue: The Economic Value of the Charitable Sector, by Vivien Foster, Susana Murato, David Pearce, and Ece Ozdemiroglu. Northampton, Mass.: Edward Elgar, 2001. 217 pp., $85.00 cloth. Third Sector Management: The Art of Managing Nonprofit Organizations, by William B. Werther, Jr., and Evan M. Berman. Washington, D.C.: Georgetown University Press, 2001. 248 pp., $24.95 paper.