The more you know,the more you give: Influence of online disclosure on European community foundations' donations

Competition is high in the charitable contributions market, and donors demand to know how nonprofit organizations use the money they receive. In scrutinizing the variables that affect the capacity of nonprofits to attract donations, previous research has highlighted the positive influence of the amount of financial and performance information that nonprofits disclose through their websites. This study explored whether the depth of the organizations' online disclosures also affects these donations. In line with existing studies on regression‐based economic models of giving, this study considered community foundations—focusing on the United Kingdom and Italy—and its results indicated that managing the depth of the information provided through financial reports can influence donors' sensitivity and willingness to donate.     

The governance of nonprofit organizations: Law and public policy

Who should have the right to set the objectives of nonprofit organizations, hire their managers, set compensation standards, and in general control these organizations? Current law and public policy do not provide answers to these questions. Often, nonprofit organizations are controlled by managers and members of the boards of directors or trustees (many of whom are appointed by management). The goals of these individuals may not best serve the interests of those who support the operation of nonprofit organizations. This article proposes a legal and policy framework for empowering consumers, donors, and sponsors—those who have an economic demand for the nonprofit form of organization. The framework establishes a formal status of membership, accords standing in the court of law to members, enhances direct information dissemination by nonprofit organizations, and empowers state-sponsored agencies to support and oversee nonprofit organizations.     

Information Source Reliance and Charitable Giving Decisions

This study examines the relationship between donor reliance on information and donors’ subsequent charitable giving decisions of both time and money. To examine this relationship, we utilize data from an original survey of residents in San Diego County, California (n = 1,002), asking donors about their charitable activities and the information sources that they use to facilitate their charitable decisions. Our findings reveal that relying on information from both nonprofit accrediting agencies and personal experiences positively influences donors’ decision to give time to nonprofit organizations (that is, volunteer), but has no significant impact on decisions to give money. Implications of these findings are discussed.     

Hispanic charitable giving: An opportunity for nonprofit development

In 2003, the U.S. Census Bureau indicated that Hispanics had become the largest U.S. minority group. Representing 14 percent of the population, more than forty million Hispanics currently live in the United States and are a growing source of charitable giving. This study uses a national probability sample (n = 3,261) to examine variables that may influence Hispanic charitable giving in the United States to private nonprofit organizations. Logistic regression analyses indicated that Hispanics were eight times more likely to donate to human service organizations when using payroll deduction. In addition, Hispanics who were solicited for a donation by telephone were twice as likely to make a donation to educational organizations as Hispanic donors not solicited by phone. Volunteerism was also a predictor of Hispanic charitable giving. U.S. demographic trends and this study's findings suggest that nonprofit leaders, including those responsible for fundraising in private nonprofit organizations, need to be aware of the opportunities for Hispanic charitable support.     

Professionalization and Cost Efficiency of Fundraising in Charitable Organizations: The Case of Charitable Foundations in China

This study examines the effects of professionalization on the cost efficiency of fundraising organizations in a unique research context, Chinese charitable foundations. Two important professionalization measures, professionalized human resource management and accounting practices, are adopted. Using data from audited annual reports from 2005 to 2009, we find that professionalization in general enables foundations to increase their fundraising cost efficiencies. However, further analysis indicates that this positive effect only occurs in private but not in public foundations. Furthermore, the positive effect of professionalization is more significant when raising unrestricted funds than when raising restricted funds from donors.

     

Social Media Management

Do foundations effectively use social media to engage stakeholders? Do usage and engagement vary by foundation type? This article has been written to stimulate discussion and research about social media use and user engagement by foundations beyond measuring social media presence. We analyzed Facebook usage and stakeholder engagement for three types of foundations: community, corporate, and independent grant‐making foundations. We found that although community foundations are more likely to have a social media presence, corporate and independent foundations are more likely to use Facebook and to effectively engage stakeholders. Findings illuminate the need to understand social media usage and engagement in addition to presence. We discuss potential benefits of social media use and provide practical communication management recommendations for nonprofit practitioners.     

Donor Reactions to Commercial Activities of Nonprofit Organizations: An American Case Study

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations - This paper raises two questions. Do donors to nonprofit organizations care about whether nonprofit organizations pursue...     

Understanding Nonprofit Advocacy in Non-Western Settings: A Framework and Empirical Evidence from Singapore

Research on nonprofit advocacy in non-Western settings is still rather limited. In this article, we address this limitation by examining the advocacy practices of nonprofit charitable organizations in Singapore, a non-liberal democratic city-state in Southeast Asia with a history of colonial rule. We ask the following questions: What are the key environmental and organizational factors that influence the scope and intensity of advocacy activities of nonprofit organizations? In particular, what is the effect of the political context on the advocacy strategies and tactics among these organizations? To answer these questions, we present a three-factor explanatory model of nonprofit advocacy incorporating cause, capacity, and context. The research methodology entails a survey of nonprofit executives from a random sample of Singapore human and social service organizations. Our findings shed light on how the various aspects of the political context—perceived opportunities and threats from government intervention and dependence on government funding—shape nonprofit advocacy in a non-Western setting.     

Community Foundations: A Growing Resource for Community Development

Like many nonprofit organizations, community development corporations (CDCs) rely on various sources of funding and support for their activities in poor and distressed neighborhoods. Funders often include the federal government, state and local government agencies, financial institutions, and philanthropic organizations. The author explains how community foundations are different from other philanthropic organizations and describes the various mechanisms that community foundations use to support community development. She suggests that there is a natural fit between the purpose of community foundations and the philosophy of community development, concluding that it is important for CDCs, as well as other nonprofit organizations, to understand how community foundations are different from other philanthropic organizations so that they may better position themselves to take advantage of the many resources that community foundations bring to their communities.     

Gambling on an alternative revenue source: The impact of riverboat gambling on the charitable gambling component of nonprofit finances

This article examines the impact of casino gambling in and around Illinois on charitable gambling in that state. The research targets the impact of casino gambling on one of the vital revenue sources of many nonprofit organizations. Charitable gambling represents the most widespread form of legalized gambling in the United States. Net income from charitable gambling totaled an estimated $1.3 billion in 1997. Despite its apparent importance in providing an alternative revenue stream to nonprofit organizations, in a growing number of states charitable gambling operations must compete with an increasing number of private for‐profit gambling enterprises, including riverboat and land‐based casinos, Indian gambling operations, and pari‐mutuel wagering venues. As a result, there is interest in the extent to which forprofit gambling is crowding out charitable gambling—and in the process reducing funds (such as receipts from gambling operations) available to nonprofit organizations. The data analysis presented in this article suggests that spending on casino gambling in Illinois and in bordering areas of Indiana, Iowa, and Missouri may be displacing consumer expenditures on charitable gambling.     

An unseen lens: The relationship between philanthropists’ developmental meaning making and philanthropic activity

To solve complex problems such as poverty, nonprofit leaders must think in increasingly complex ways. Research on philanthropy has not yet explored the complexity of philanthropists’ thinking while making philanthropy‐related decisions. Developmental psychology indicates that adults develop an increasingly complex mental map over the course of a lifetime and that this map emerges as a series of successive stages. This study asked: How, if at all, does this mental map inform philanthropy? This four‐phase mixed‐methods multi‐case study (n = 11) used constructive developmental theory to empirically assess philanthropists’ developmental levels and, then, compare identified levels with data about the donor's philanthropic activities such as donations and board memberships. The contributions of the study are twofold: (a) the findings suggest philanthropists’ developmental levels are related to their thinking processes about charitable giving and the rationales they employ to make decisions about their philanthropic activities (specifically, how they form ideas about the problem and how they engage in empathy), and (b) this study makes a methodological contribution by demonstrating a novel (and apparently useful) approach to researching philanthropic giving. Theoretical and practical implications are discussed.     

Some thoughts on the validity of estimates of charitable giving

There is but a single source of widely-accepted estimates of charitable giving in the United States, and that isGiving USA, an annual publication of the AAFRC Trust for Philanthropy. This paper examines the validity of those estimates and raises questions that imply a need for further research in this area.Despite the improvements in the quality of the estimates over the years, there remain conceptual, empirical and procedural problems of which all users of the numbers should be aware. The conceptual problems are largely a matter of definition, and it is argued that grants by private foundations should be excluded from the total because foundations themselves are charitable recipients of funds from the rest of society and their inclusion results in double-counting. The empirical problems arise from defects in much of the data from the tax files that are used as sources of information for making the final estimates; some of those defects are spelled out in detail. The procedural problems stem from the lack of comprehensive information about the amounts of charitable giving from individual donors; in making its estimates,Giving USA relies primarily on an econometric equation, some of the variables in which are questionable.     

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.     

Common Agency in Nonprofit Advocacy Organizations

Most theories of nonprofit organizations and nonprofit leadership recognize the multitude of stakeholders—including board members, donors and volunteers, funders, the media, and policy makers—that organizational leaders must contend with in doing their work. For nonprofits engaged in advocacy, demands from stakeholders may be even more challenging to meet. Although stakeholder theory recognizes the effect of various groups on an organization, it does not explain how leaders manage the preferences of their often‐competing stakeholders while they make choices for the organization. This study develops a common agency framework, evaluating the roles of three groups crucial to nonprofit advocacy organizations: the organization's board of directors, elected officials, and donors/members. The common agency framework is then illustrated with interviews with leaders of nonprofit advocacy organizations in California. Findings suggest that the leaders of these groups have a significant amount of discretion in guiding their organizations’ activities and operations.     

Service learning from the supply side: Community capacity to engage students

The rapid increase in the use of service learning raises important public policy questions about who is being served and whether partner agencies have the capacity to meet student demand for community‐based experiences. This article uses a large sample of nonprofit organizations and a comparative framework to examine the characteristics of partner agencies and the scope and nature of college student community involvement. Multivariate analysis tests these factors on a community agency's ability to engage more students, particularly service learners. The findings are generally optimistic about agency willingness to involve students, suggesting widespread community benefits from their involvement. While organizational size and capacity predict current student engagement, an agency's past experience with students and its perceptions of student benefits have the greatest impact on its willingness to take on future students.     

The potential of Web sites as a relationship building tool for charitable fundraising NPOs

The Internet and especially the new challenges within Web 2.0 provide organizations with the possibility of encouraging two-way communication and engaging publics in dialogue. Charitable fundraising nonprofit organizations (NPOs) can particularly benefit from the Web's relationship building potential. This study aims to explore the potential of Web sites as an online-communication tool of Swiss NPOs. Via content analysis, the Web sites of 134 Swiss charitable fundraising NPOs were examined in order to point out how those organizations are using the Web to create dialogic relationships with their most important stakeholder groups, which are potential donors and the media. Results indicate that the potential of the Internet for dialogic communication is not used efficiently by most NPOs. Nevertheless, NPOs seem to be acknowledging the importance of engaging publics in dialogue, as most of them replied to information requests from potential donors and the media.¹     

Collaboration in foundation grantor‐grantee relationships

Foundations take many forms and wield widespread influence within the nonprofit sector. One aspect of foundations that has received limited research attention is the relationship between the foundation and the grantee. Some authors have encouraged a reframing of this relationship to be more one of equals, where each party brings attributes valuable to the other and where collaboration can germinate and produce more effective philanthropy. This exploratory study suggests that the quality of these relationships varies widely and that it is often difficult to form collaborative ones. It identifies some of the earmarks of fruitful relationships and suggests some ways to replicate those successes. I hate foundation officers—they're all jerks! —Experienced nonprofit executive We care about these [nonprofit] organizations—it is through them that we do our work. —Senior foundation program officer     

Foundations and innovation in the nonprofit sector

Using a sample of 17 foundations that are at the forefront of encouraging innovation this study explored foundations' motivations behind funding innovation, their perceived ability to impact the levels of innovation in nonprofit organizations, and strategies that foundations are using or can use to encourage innovation in nonprofit organizations. The results showed that among the major motives behind funding innovation were leveraging the capital, honoring the foundations' core identity (mission and values), and desiring to encourage innovation in nonprofit organizations. Five strategies/mechanisms that foundations are using/can use to encourage innovation in nonprofit organizations were identified: (a) offering innovation awards/grants as catalysts for innovation, (b) providing risk capital and supporting early stage idea development, (c) educating other foundations on the value of innovation and serving in a convener role, (d) serving as thought leaders, and (e) increasing nonprofit organizations' capacity for innovation. Implications for practice are discussed along with recommendations for future research.     

Innovation,accountability, and independence at three private foundations funding higher education civic engagement, 1995 to 2005

This case study looks at changes in private foundation funding for higher education civic engagement from 1995 to 2005. The focus is three large, established foundations that were U.S. national leaders in supporting this activity during these years: Carnegie, Pew, and Kellogg. Data sources include (1) in‐depth conversations with four strategically placed foundation insiders and six nationally recognized campus leaders and (2) scans of Web sites of the three foundations that document the change in funding priorities over time, plus Web sites of the main campus initiatives supported and national campus civic engagement organizations such as Campus Compact. Research findings con‐ firm and specify other studies that suggest that foundations shift their funding priorities according to their perceived role as innovators, pressures to be accountable and show clear results, and their independence as private organizations. The article concludes by raising questions about private foundations generally in relation to issues of innovativeness, accountability, and independence.