Identifying and addressing fundraising's overarching ethical questions through ethical theory

Purpose

This paper seeks to build on MacQuilllin and Sargeant's (2019) framework for normative fundraising ethics by considering how fundraising professionals might use these theories to support their fundraising practice. In the paper we will seek to identify the higher-level ethical questions that underpin the majority of ethical decisions fundraisers will need to make: decisions around the acceptance and solicitation of donations and we will then seek to address each of these questions through the lens of MacQuilllin and Sargeant's (2019) normative ethical theories.

Approach and methodology

We will abstract from common ethical dilemmas the higher-level or overarching questions that can encompass them. We will then consider each question through the lens of the normative theories developed by MacQuillin and Sargeant (2019), drawing on available evidence to support our arguments.

Findings

Two core questions were identified: 1. Where are the lines in who we approach for/receive resources from for our organisation ? 2. Where are the lines in how we approach people for resources for our organisation?

Originality

To our knowledge, this will be the first academic paper that a) identifies the overarching ethical questions that affect fundraising practice, and b) applies the various normative theories of fundraising ethics directly to them. In practical terms, it may also be particularly useful to fundraising practitioners who want to explore the theories of ethics in relation to the dilemmas they encounter in practice.     

Relational care in communication as the basis of nonprofit fundraising: Theorizing professional ethics based in stewardship and ethics of care

At its core, fundraising is relationship building. Therefore, ethical fundraising requires cultivating genuine, care-based relationships between various stakeholders by considering relational goals and communicative practices. We advance an ethics of care-oriented approach toward fundraising based in nurturing authentic relationships with multiple organizational stakeholders, including donors, employees, beneficiaries, and volunteers. Drawing upon ethics of care and stewardship scholarship based in public relations, the purpose of this article is to propose relational care in communication through dialogue as an ethical springboard of nonprofit fundraising.     

Normative fundraising ethics: A review of the field

The ethics of fundraising has received scant attention in the academic literature, while there is not a huge amount in the grey and practitioner literature either. There is little that explicitly describes normative theories of fundraising—broad concepts of how fundraising ought to be practised, from which recommendions for applied ethical practice can be drawn. This is the first review of the literature on fundraising ethics, articulating, synthesing and naming (often for the first time) 14 ethical theories/lenses that can be inferred (few are explicitly stated as normative ethical theories) from the literature. In so doing, this review provides scholars and practitioners with a much firmer conceptual foundation for examining and developing professional fundraising ethics, and for analysing applied practice and finding solutions to the ethical dilemmas in applied practice.     

Applying a stakeholder management approach to ethics in charitable fundraising

While nonprofit accountability literature recognizes many stakeholders, even theoretically grounded approaches to fundraising ethics tend to focus more narrowly on donors, organizations, and their missions. This paper draws on business ethics scholarship by proposing a stakeholder management approach to ethics in fundraising. This approach foregrounds intentional examination of the multiple stakeholders in the fundraising process: the organization; its donors; current beneficiaries; the broader population within the issue; the fundraisers themselves; and the community. Following stakeholder theory, ethical fundraising activities must align with the charitable mission of the organization, and take into account the legitimate interests of those groups and individuals who can affect, or be affected by, its activities. The process of intentionally identifying, prioritizing, mapping claims, engaging with, and monitoring stakeholders offers fundraisers, nonprofit executives, and members of governing and advisory boards a pragmatic means of aligning fundraising efforts with the mission, values, and long-term strategy of their organizations.     

How fundraising is carried out in US nonprofit organisations

A substantial number of nonprofit organisations in the USA report inflows of charitable contributions or grants without expenditures allocated to fundraising costs. This observation raises questions about how fundraising is carried out. Based on a survey of US charities, the paper observes that nonprofit organisations use a range of internal capacities and external relationships to conduct their fundraising. The use of staff members dedicated to fundraising is common, but much fundraising is still carried out by executive directors, volunteers and board members. Also, a substantial number of organisations engage external entities, including federated campaigns, support organisations and professional fundraising firms to generate contributions. Copyright © 2002 Henry Stewart Publications     

Factors influencing ethical climate in a nonprofit organisation: an empirical investigation

Drawing from Victor and Cullen's[Victor, B. and Cullen, J. B. (1987) ‘A theory and measure of ethical climate in organizations’, Research in Corporate Social Performance and Policy, Vol. 9, pp. 51–71.],[Victor, B. and Cullen, J. B. (1988) ‘The organizational bases of ethical work climates’, Administrative Science Quarterly, Vol. 33, pp. 101–125.] theoretical framework a recent study by Agarwal and Malloy[Agarwal, J. and Malloy, D. C. (1999) ‘Ethical work climate dimensions in a not‐for‐profit organization: An empirical study’, Journal of Business Ethics, Vol. 20, pp. 1–14.] examined ethical work climate dimensions in the context of a nonprofit organisation. This paper reviews the framework and extends the study further by investigating several factors that influence the perception of ethical work climate in a nonprofit organisation. The multiple analysis of variance (MANOVA) procedure is employed to test nine hypotheses. Results demonstrate somewhat unique findings regarding factors that influence ethical climate perception in a nonprofit context. Specifically, the findings of this study point to the level of education, decision style and the influence that superiors and volunteers have upon ethical perception. Results also demonstrate that factors that have been employed traditionally by forprofit management, such as length of service, codes of ethics, size of the organisation and peer pressure, do not effectively influence ethical perception in the nonprofit context. Finally implications of this study are discussed. Copyright © 2003 Henry Stewart Publications     

Developing a children's rights approach to fundraising with children in primary schools and the ethics of cultivating philanthropic citizenship

Fundraising literature predominantly focuses on adult donors, with limited literature addressing younger donors, particularly children, and virtually no discussion on the normative ethics which inform fundraising with children. Addressing this gap, this article examines the ethical dilemmas posed by the mainstreaming of charity fundraising in primary schools. Regardless of high levels of participation, research with primary school pupils shows that children's engagement in fundraising activities is often passive, with little decision making afforded to children. First, we question the ethics of passively engaging children in the fundraising relationship. Second, we question the role of fundraising more broadly in helping to cultivate children's philanthropic citizenship, suggesting that current fundraising mechanisms in schools are counter-intuitive to fostering long-term philanthropic engagement. We argue that by critically engaging children in the process of giving, children develop a deeper understanding of the cause areas that matter to them, which cultivates a longer-term commitment to philanthropy. This is potentially a different goal than that of many organisations involving schools in fundraising, where the focus is on incentivising transactional fundraising efforts aiming to raise as much money as possible and thus raises particular ethical challenges which must be considered. In this paper we draw on previous research and established frameworks for understanding philanthropic behaviour to explore the ethical challenges of fundraising with children in schools and present a pathway towards a more child-led, children's rights approach to fundraising in primary schools.     

Fundraising as women's work? Examining the profession with a gender lens

Fundraising is a mission-critical area for nonprofit organizations and has emerged as a professional field in the past 50 years. This paper explores the gendered nature of fundraising work and its feminization as a profession over time, while simultaneously documenting the persistence of a gender pay gap and male overrepresentation in senior-level positions in both North America and in the UK. The application of gender theory reveals that fundraising roles and responsibilities rely on key relationship-building and organizational tasks, which are commonly associated with stereotypical women's work and are, thus, valued less in a patriarchal society. As a result, the devaluing of fundraising as mission-critical work, and a career suitable for both women and men, may limit the credibility and power of the nonprofit sector to represent diverse voices and enhance democratic values in society. The article concludes with recommendations for research and practice.     

Finding an academic home for fundraising: a multidisciplinary study of scholars' perspectives

• The high‐demand, high‐paying field of fundraising does not have an academic home in higher education, which hampers fundraising research and education. Recent advances in fundraising education and research can be attributed to four different disciplines: public relations, marketing, nonprofit management, and higher education administration. This disjointed approach has impeded the empirical study of fundraising, the development of theory in the field, and the education of future fundraisers. The purpose of this study is to begin the process to scientifically identify an appropriate academic home for fundraising that benefits fundraising practice, advances scholarship, and strengthens America's nonprofit sector. In‐depth interviews were conducted with 15 scholars from multiple disciplines who had published articles on fundraising in the three major nonprofit management and philanthropy journals. Findings show that there is no consensus among scholars about whether fundraising belongs in public relations, marketing, or nonprofit management. Although this study found no consensus among fundraising scholars about the appropriate academic home for fundraising, it does identify areas of agreement and disagreement on pertinent topics and provides a benchmark to guide further discussions about locating fundraising within an academic discipline.

Copyright © 2016 John Wiley & Sons, Ltd.     

Community-engaged philanthropy: The role of the fundraiser in building equitable communities

In recent years, fundraisers have become increasingly focused on major gift solicitation while donors have been making larger gifts to fewer organizations. As this trend continues, some have begun to question whether major organizations and/or wealthy individuals now have too much control over the work of nonprofits and the communities they serve. While it is true that major gifts are important and can made a noticeable, positive impact, in some cases community members might see their impact as intrusive. In situations such as this, what is the “best” course of action? How should fundraisers consider, balance, and address the perspectives and rights of their organization, donors, and community members? This paper creates a framework for fundraisers as they consider not only their responsibilities to their organization and constituents, but also their responsibilities for promoting equity within their community as a whole. This paper draws on the social-ecological model, as well as concepts from intersectionality, to explore how fundraisers can increase involvement from all community members in a nonprofit's work to create a participatory and community-engaged process, with a special focus on including those who are typically marginalized, rather than maintaining a hierarchical system of power. It also draws on the theories of rights-balanced fundraising ethics, community-centric fundraising, and other ethical frameworks of fundraising and public administration to compare what is being done by fundraisers to what should be done to encourage ethical practices in fundraising. The paper is supplemented by examples of the impact of implementing (or not implementing) community engagement in fundraising practices. This paper aims to create a community-engaged philanthropy framework for fundraisers as they consider not only their responsibilities to their organization and donors, but also their responsibilities for promoting equitable distributions of power within their community. This framework provides specific guidance for fundraisers as to how they can balance these multiple (and sometimes competing) responsibilities while also keeping ethics at the forefront of their actions. It demonstrates how, by taking a community-engaged approach to their work, fundraisers are able to bring about better long-term outcomes for their organization. Specifically, the framework considers: (1) To whom are fundraisers most responsible, and to whom should fundraisers be most responsible—their nonprofit, their donors, or those being served? (2) For what rights of community members must the fundraiser account when soliciting funds, and to what extent is the fundraiser responsible for upholding these rights? (3) In what ways can an invitation from a fundraiser to make a gift also invite some level of power or control over the organization's work? (4) To what extent do fundraisers have the responsibility to maintain an equitable power balance among their constituents, including donors and those served? (5) How can fundraisers help ensure that all community members are able to participate in the organization's work to extent that they are willing and able?     

Initial evidence on whether use of professional fundraising services increases fundraising effectiveness

• We provide initial evidence on whether use of professional fundraising services by US nonprofit organizations (NPOs) increases the effectiveness of NPOs' fundraising efforts. To a well-tested model of organization-level donations, we add an interaction term that captures the impact that professional fundraising fees an NPO incurs has on the effectiveness of an NPOs' spending on fundraising in raising donations. We find that professional fundraising fees has a significant positive impact on the effectiveness of fundraising efforts in raising donations for NPOs in the full, education, and health samples, but no impact for NPOs in the arts and human services samples. For NPOs in the full sample and NPOs in the education sample, one quarter of the effect of fundraising on donations stems from the positive impact of professional fundraising services on the effectiveness of fundraising in raising donations. For NPOs in the health sample, one half of the effect of fundraising on donations stems from the positive impact of professional fundraising services on the effectiveness of fundraising in raising donations. These results suggest that professional fundraising services significantly enhance the effectiveness of fundraising for these types of NPOs. While the results of this study seem to confirm the decisions of managers of education and health NPOs to utilize professional fundraising services, the results also suggest that managers of arts and human services NPOs may want to reconsider using professional fundraising services, at least the types of services they currently purchase and the way they currently utilize such services.

Copyright © 2009 John Wiley & Sons, Ltd.     

Donor recognition: A double-edged sword in charitable giving

Previous studies discover confounding results on how donor recognition affects individual charitable giving. To answer the questions of how different donor recognition schemes affect individual giving and what type is more effective as a marketing strategy to meet different fundraising goals, we conducted a field experiment in China with three donor recognition types: voluntary, involuntary, and mandatory donor recognition. We used social media to recognize donors and verified the field experiment results with naturally occurring data. We observed similar behavioral patterns in both samples. The results of this study explain the mixed results from previous studies, suggesting that there is no one-size-fits-all approach for recognizing donors. Decision makers of nonprofit organizations need to select the appropriate type of donor recognition based on their fundraising goals.     

The fundraiser's journey: A developmentally informed,grounded theory analysis

Fundraisers play a vital role in the success of nonprofit organizations, yet relatively little is known about the experiences, motivations, and thought processes that inform their career choice and development. This exploratory, cross-comparative case study of 3 fundraisers addresses this gap in the literature by examining some formative influences on fundraisers' careers, their professional growth aspirations and opportunities, and how, if at all, they engage in personal philanthropy. Results suggest that fundraisers' aptitudes, skills, and abilities may influence their career choice more than a sense of connection to the nonprofit sector or organizational mission. Further, fundraisers seek opportunities to exercise leadership at the individual, organizational, and community levels. Additionally, their personal philanthropy and social embeddedness play integral roles in their professional development. Although not large enough for generalization, these results suggest the need to study fundraisers holistically, including their psychological development and social embeddedness over time. We argue for the need to move beyond traditional marketing and public relations perspectives to explain fundraising. Instead, future studies should adopt a service-dominant logic framing that considers fundraisers as part of a larger philanthropic ecosystem. We conclude with several questions to guide future studies toward this line of inquiry.     

新形势下电信企业如何加强职业道德建设

职业道德建设作为企业精神文明建设的重要内容，在企业发展过程中发挥着重要作用。随着市场经济的深入发展和在电信企业转型改革的新形势下，加强职业道德建设有着特殊的现实意义。文章通过分析当前电信企业职业道德建设存在的问题，研究探索做好新形势下职业道德建设的思路和方法。     

An exploratory study of stewardship for Chinese nonprofit organizations

This study examined how Chinese nonprofits practice stewardship and how stewardship principles influence nonprofit–donor relationships and donor retention. Fifteen qualitative in‐depth interviews were conducted with experienced fundraisers in China. Results showed that Kelly's stewardship principles were applicable in China; Chinese fundraisers practiced stewardship principles of reciprocity, responsibility, reporting, and relationship nurturing to maintain relationships with major gift and annual donors. Besides, practitioners also utilized a variety of communication channels, ranging from face‐to‐face, telephones, emails, to digital shared media such as WeChat and Weibo, in communicating with individual and general public donors. Finally, interviewees also provided evidence on the positive role of quality nonprofit–donor relationships in retaining donors. This study illustrated the current status of nonprofit fundraising practice in China and expanded the explanatory power of the stewardship theory. The findings are implicative for Chinese nonprofits professionals on how to develop their unique stewardship practice in managing relationships with donors.     

A thematic analysis of fundraiser characteristics in high-quality major donor fundraising relationships in US higher education

As nonprofits increasingly rely on large contributions, skillful major gift fundraisers are more important than ever. In contrast to the vast research on donor motivations, there are few examinations of fundraisers or fundraising relationships. This study responds to nonprofits' interest in understanding beneficial fundraising strategies and to the lack of empirical literature with the question: From the donor perspective, what characteristics do fundraisers demonstrate within high-quality major giving relationships? This exploratory, interview-based project used a codebook thematic analysis approach based on HEXACO personality theory to review participants' reflections about fundraisers. The 20 participating donors had given between USD$10,000 and USD$40 million to select colleges and universities in the US Midwest region. This study confirms much of what fundraisers believe to be important to major gift donors, with added nuance about the complex form of professionalism donors appreciate. The fundraiser characteristics show several dual emphases, including on field expertise and interpersonal acumen, attention to donor concerns and institutional interests, patience with the gift-making process and ability to facilitate its progression, and attention to ethical practice and empathetic interactions. The study shows the inner workings of the major giving relationship fundraising paradigm, reveals how societal perceptions of fundraisers are relevant for understanding donor preferences, and provides a framework for fundraisers to assess and enhance their interactions with major donors.     

America's worst charities: The effect of bad press on philanthropic giving behavior

Negative media stories about nonprofits can potentially lead to decreased financial donations. We used agenda setting theory to study donors' perceptions of what could arguably be called one of the most negative nonprofit media stories in recent times: the 2013 Tampa Bay Times report titled “America's worst charities.” This news story identified and ranked America's 50 worst charities based on solicitation (i.e., fundraising) costs and was investigated further by CNN. We surveyed 655 individuals in August 2016 and found that approximately 3 years since the story had aired, 278 (42.4%) of the sample still remembered the news story, and the majority of them reported that it negatively influenced their thinking (63%) and philanthropic donation behavior (62%). These findings have implications for nonprofit media relations and fundraising.     

Culturally responsive relational reflexive ethics in research: the three rs

In this article, the authors define ethics, discuss why researchers should care about ethics, and briefly review the history of ethics and the surrounding contemporary debate as related to research, the development of research ethics codes, research ethics legislation, and the formation of the human subjects research review boards in the West with an emphasis on the United States’ Institutional Review Board. They then explicate the difference between minimalist ethical codes, which all respected researchers must adhere to, and an aspirational ethical stance. Culturally Responsive Relational Reflexive Ethics (CRRRE) is then advanced as a viable aspirational ethical stance for the research community. Finally, the authors draw on their own research for examples of ethical dilemmas involving ethnicity, age, sexual orientation, and power that CRRRE has helped illuminate.     

The state-of-the-art and future research directions in bequest fundraising by nonprofit organizations: A systematic literature review

The topic of fundraising is garnering increased attention from nonprofit practitioners due to the worldwide growth of the nonprofit sector and the subsequent competition for private funds. Despite this surge, academic literature on fundraising and bequest fundraising, in particular, has remained mainly limited to narrow aspects of the discipline. Based on a systematic review of literature published over the past 25 years, we synthesize various research perspectives into a comprehensive framework of studies linking the different issues highlighted by the authors. The purpose of this article is to consolidate the state of academic research on bequest fundraising by not-for-profit organizations. The literature review underscores how research efforts have not paid much attention to bequest fundraising from the NPO's perspective, although as it has become an increasingly important source of income for charitable organizations. The majority of studies focus on the Donor's perspective, striving to understand what drives the desire to leave a charitable bequest. The findings of the SLR show a gap in the knowledge of NPOs' internal mechanisms concerning the particular topic of charitable bequests; from these insights, the future research directions are proposed.     

The five stages of fundraising: a framework for the development of fundraising

Little research has been undertaken on the development of fundraising in charities, as distinct from fundraising activities and methods. This paper arose out of a wider study of the impact of environmental factors on charity fundraising in the early 1990s. By looking at the development of fundraising in charities of all sizes, it became clear that there was a framework for fundraising. Specifically, the principal characteristics of the framework were based on the need for voluntary income and the influence of staff or volunteers in the fundraising process. This paper outlines the stages in the development of fundraising and their principal characteristics within the context of market orientation and organisation culture theory. It concludes with some implications for fundraising practitioners. Copyright © 2000 Henry Stewart Publications.