Reinventing the rattling tin: How UK charities use Facebook in fundraising

Using a multicase study approach, this paper explores how the three biggest UK cancer charities by donations use Facebook in their fundraising campaigns, in order to facilitate understanding of the dynamics of philanthropic asking in a social networking site‐mediated environment. The analysis reveals that Facebook is primarily used to strengthen relationships with supporters, mainly via humanising the brand, fostering obligations, and encouraging social interaction. The mobilization of these relationships in fundraising is facilitated by persuasive strategies, including public recognition, authority, and the fostering of a sense of efficacy among fans, and the most common outcome of this mobilization is public endorsement of charities' fundraising campaigns via sharing. At a time when harsh public spending cuts have left gaps in charity funding that need to be filled by philanthropy, this study aims to make a practical contribution to knowledge by examining what works and how in Facebook fundraising.     

Donor commitment: An investigation of fundraising strategies in churches and mainstream charities

One of the central questions in relationship fundraising is how to convert someone who makes a small yearly donation into someone who is a major donor covenanting a substantial part of his/her income. Drawing on research among 200 major UK fundraising charities, this paper explores how far the issue, of donor commitment is used in mainstream fundraising strategies, and finds that only a minority of charities place emphasis on this. This finding is compared with an analysis of models of giving in churches. It is argued that while churches may lack sophisticated approaches to fundraising, they may have important experiences in the area of committed giving which are relevant to fundraising strategies in other organisations.     

Changes in UK tax‐effective giving: implications for donor fundraising strategies

Strategies for fundraising from committed donors in the UK have long placed considerable emphasis on tax‐efficient giving, in particular the use of deeds of covenant and gift aid which enables charities to recover tax paid by the donor and thus increase the value of a donor's gift. However, recent developments and proposed developments in UK legislation and Inland Revenue procedures are about to make radical changes to this regime. Although in general the changes are beneficial to charities, the precise implications will, in many cases, require a significant change in fundraising strategies to make effective use of the new giving environment. This paper seeks to analyse the nature of those changes and the consequence for fundraising strategies. In relation to three main strategies some approaches to further research are proposed, which a charity may wish to apply in order to assess whether and to what extent new approaches to committed donor fundraising are required. A preliminary version of this paper was presented at the Institute of Charity Fundraising Managers Convention (Academic Stream) in July 1999, but it has been substantially changed to take account of further government announcements made in November, 1999. Copyright © 2000 Henry Stewart Publications     

What are ‘unpopular causes’ and how can they achieve fundraising success?

• Recent efforts to grow and strengthen the culture of philanthropy in the UK have largely focused on two dimensions: the total amount of money donated and the effectiveness of philanthropic spending. This paper explores a third dimension: the destination and distribution of donations. A defining characteristic of charitable giving is that it is voluntary rather than coerced, and the resulting respect for donor autonomy makes people wary of promoting one cause above another or implying that any beneficiary group is more or less ‘worthy’ of support. However, the absence of much comment on, or significant research into, the destination of donations does not alter the fact that some groups succeed in attracting significant philanthropic funds whilst others struggle to secure many—or any—donations. This paper explores the concept of ‘unpopularity’ in the charity sector, especially in relation to its impact on fundraising. We unpack what this loaded phrase means, identify good practice by those seeking support and present case studies of charities that have overcome perceived unpopularity to achieve success in raising voluntary income. We suggest that by investing organisational resources and effort in fundraising, by framing the cause to maximise the arousal of sympathy and minimise concerns about beneficiary culpability and by avoiding the unintended negative consequences of self‐labelling as ‘unpopular’ no charity need assume it is their destiny to languish at the bottom of the fundraising league tables.

Copyright © 2016 John Wiley & Sons, Ltd.     

Online social network fundraising: Threats and potentialities

There has been a growth in online fundraising from crowdfunding apps, like GoFundMe, that propagate fundraising appeals on social networking sites. In the online space, these crowdfunding apps pose a potential threat to the traditional intermediation role of charities. The disintermediation threat is that donors choose crowdfunding intermediaries instead of charities to channel their giving. In this article, we discuss what makes crowdsourced fundraising effective and how charities can adapt to this new dynamic for more effective online fundraising emphasizing two key success factors: brand strength/reputation and managing the donor experience. In addition, we explain the advantages and disadvantages of social media fundraising and giving and propose ways charities can leverage their good reputations and public trust to stimulate reintermediation. Finally, we propose a landscape for future research based on model that emphases the fundraising campaign's ability to stimulate viral sharing within and between online social networks.     

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.     

Fundraising or promoting philanthropy? A qualitative study of the Massachusetts Catalogue for Philanthropy

Philanthropic institutions are increasingly involved in efforts to promote or expand philanthropy in the US, yet little research has been done in relation to such efforts within the “new philanthropy” environment. This qualitative study examines one such effort: the Massachusetts Catalogue for Philanthropy. The study focuses on understanding what key individuals associated with the Catalogue think about its purpose(s) as a means of beginning to answer the underlying questions: How are these new philanthropy promotion projects different from traditional fundraising and to what degree are they contributing to a new philanthropic paradigm? Results and data analysis indicate that participants have varying opinions about the purpose of the Catalogue that come from two perspectives. One sees the Catalogue as a tool for institutional fundraising for small charities featured by the Catalogue in the annually published Catalogue for Philanthropy; the other sees the Catalogue as a mechanism for the overall promotion of philanthropy in the state by educating donors, creating a new conceptualization of philanthropy, and strengthening philanthropy. Copyright © 2005 John Wiley & Sons, Ltd.     

Benchmarking the fundraising performance of UK charities

• The cost of fundraising and its effectiveness are issues of increasing importance in the UK nonprofit sector. Measuring fundraising effectiveness properly is critical to organisations on two fronts. From a financial stewardship perspective, charities need to ensure that their fundraising is as efficient as possible. From a public relations perspective they need to be able to demonstrate this to donors and our other stakeholders. There are many problems to be overcome in objectively judging a charity's performance relative to other nonprofit organisations. There are significant methodological barriers to be overcome to produce valid and meaningful comparisons. The well established Fundratios study shows that it is feasible to construct a methodology for robust benchmarking underpinned by good quality data which charities can use as a tool to inform the management of their fundraising activities.

Copyright © 2009 John Wiley & Sons, Ltd.     

Charity brands: A qualitative study of current practice

A number of fundraising managers and directors of UK charities were interviewed with the objective of understanding to what extent branding was used in the sector, what development possibilities exist for commercial techniques in charities, and what the constraints may be on such practices. It was found that many charities already use day-to-day brand techniques, (without describing them as ‘branding’), but brand development work was scarce. Charities have a number of objectives competing with fundraising when considering their brand content. They must also satisfy the need to respect issues about how the cause itself is communicated, and possible needs to re-educate the donor community or the public. One commercial practice in particular could be developed further in charity branding: this is the idea of using the personality of the charity itself as something with which donors could associate positively.     

Celebrity altruism: the good,the bad and the ugly in relationships with fundraising charities

• Enlisting or retaining the support of celebrity volunteers is a crucial element in the fundraising and communications strategies for many third sector organisations. But whilst there is a plethora of literature on volunteer motivations, there has been little exploration of the relationships between celebrity volunteers and the charities that they support. Furthermore, the limited theory that exists appears to be based on the experiences of fundraisers and other media specialists with little primary research on attitudes of celebrities themselves. This paper therefore considers celebrity/charity relationships on the basis of existing volunteer motivation theory and attitudinal data from a sample of 208 celebrity volunteers associated with a major fundraising charity in the UK. The findings indicate that the motivation of celebrity volunteers may be much closer to those of other charity volunteers than might be expected from other literature on celebrities. In addition, the study found that amongst other factors, celebrity volunteers typically prefer their engagements to be simplistic and expedient in nature, but that where possible, the engagement activity should be fun and rewarding. It also reveals that individual motives for supporting charities are varied in nature and range from purely altruistic tendencies at one end of the continuum to egoistic motives at the other. In addition, the study indicates that factors such as security and trust in the endorsed organisation are a key motivating factor for many.

Copyright © 2014 John Wiley & Sons, Ltd.     

Brochure fundraising

A fundraising brochure is regarded by many charities as a major source of income. This is associated usually with the charity's major fundraising event in its annual calendar. What many charities do not do is plan their brochure campaign to eliminate wasted effort and costs while maximising revenue received. This paper examines brochure fundraising techniques, drawing on personal and anecdotal experiences of fundraisers working in the nonprofit and voluntary sector.     

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.     

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.     

UK Asian communities: A profitable market for nonprofits?

The ethnic minority communities in the UK are an increasingly powerful force. But UK charities have not had a great deal of experience in approaching this market, despite a readily acknowledged desire to increase their own levels of cultural diversity. How many want a better ethnic representation among their donor base? How many want greater cultural diversity among volunteers, let alone staff? This paper examines the Asian communities within the UK, and suggests that these are groupings with which UK charities should be engaging. The communities are identifiable, with strong philanthropic traditions, they have increasing economic power and they are accessible. The paper also looks briejly at a positive response generated by one organisation-the Aga Khan Foundation (UK) — to a non-denominational, intercommunal appeal for funds from the Asian Communities in the UK.     

Determinants of fundraising efficiency of nonprofit organizations: evidence from US public charitable organizations

Using a translog stochastic production frontier and maximum likelihood estimation method, we estimate fundraising efficiency and examine the determinants of fundraising efficiency in public charitable organizations in the United States. Our study shows that organizational size has a positive impact on fundraising efficiency and government grants have a negative impact on fundraising efficiency. We also show that charities that allocate more resources on fundraising related labor, as compared with fundraising‐related materials and equipments, are more efficient in fundraising. These findings provide important managerial implications for public charities. Copyright © 2010 John Wiley & Sons, Ltd.     

Payroll giving in the UK: donor incentives and influences on giving behaviour

Payroll giving became tax effective in 1987. Since then, it has grown steadily, but has never reached the success of payroll giving in the USA, where it accounts for the highest yielding and lowest cost form of fundraising. This paper looks at payroll giving in the UK and reports the findings of a large scale survey of payroll givers. It also examines tax reliefs in encouraging giving through the payroll, and the role of stakeholders in such charities, companies and agency charities. Copyright © 2002 Henry Stewart Publications     

The impact of brand orientation on managerial practice: a quantitative study of the UK's top 500 fundraising managers

This paper explores the impact of brand orientation on the managerial practices of fundraising managers in the top 500 UK charities and, in particular, on their ability to attract voluntary income. A series of hypotheses was tested including whether level of brand orientation is associated with different patterns of influence within charities, with the range and type of brand communicators used and with the extent to which organisational objectives are fulfilled. A key finding of the research was that high brand‐oriented fundraising managers attract significantly more voluntary income than low brand‐oriented fundraisers, but that level of brand orientation was not related to statutory income. Such findings are consistent with current theory and practice of branding in which a brand is perceived as a product or organisation plus, where the plus indicates a unique set of values which allows differentiation and hence, donor choice, within competitive environments. Copyright © 2002 Henry Stewart Publications     

Fundraising in civil society

The objects of this paper are to enrich understanding of fundraising and consequently to increase funds raised by looking at the roles of funders and fundraisers in civil society. The idea of civil society includes charities but has broader scope, including all forms of independent association and combinations of people within the state, working for a common good, outside the government and economic spheres. The existence of such thriving associations necessarily entails voluntary funding. This gives a special role to funders and gives value to fundraising. Funders should be enabled to share the ideals of the causes they support and even to contribute to their activity, as partners in voluntary enterprise. Civil society is part of an Anglo-Saxon US and UK tradition. A different tradition dominant in the European Union could threaten the governance, independence and fiscal treatment of NGO's in the UK.     

Pareto's law of income distribution,or the 80/20 rule

Pareto's Law of Income Distribution forms the basis of the well-known, but often overlooked, ‘eighty-twenty’ rule. The implication is that a small proportion of customers (or donors) are accountable for a very large share of sales turnover or income. This paper examines the impact on fundraising of the pioneering work of Vilfredo Pareto (1848–1923) concerning the distribution of wealth between groups in society, which was first published exactly one hundred years ago, in 1895. It discusses the relevance of Pareto's Law to contemporary fundraising, using case data from UK charities who have put Pareto's assertions to the test. The recognition of the Pareto principle is wholly dependent on data analysis and software tools to perform the calculations and then display Pareto-style reports. Such tools are beginning to be seen in UK and some overseas software packages and general tools, available in the UK nonprofit marketplace. Illustrations of software systems supporting Pareto-style diagnostic analysis are given. At its most basic, Pareto's principle compels fundraisers to look into their databases of supporters to identify the small but potent élite donating segments who always seem to exist among the general mass. The implications for fundraising that flow from such analyses are important and can be far-reaching. They allow fundamental supporter segmentation patterns based on historic donating history to be understood, and, if understood, managed productively. Finally, Pareto compels the decision to alter either fundraising management and allocation of resources, or to manage supporters, rather than appeals, which in the UK continues to be the most common management style.     

Philanthropy,social capital or strategic alliance? The involvement of senior UK business executives with the voluntary sector and implications for corporate fundraising

Although corporate fundraising is popular there has been very little discussion in the voluntary sector literature of its context. Using questionnaire data from senior executives representing one‐third of the FTSE350 companies, and in‐depth interviews with a number of top level business men, this paper reports the first UK survey of the personal involvement of senior executives with charities, voluntary and community organisations,[Walker, C. and Pharoah, C. (2000) ‘Making time for charity: A survey of top business leaders' involvement with voluntary organisations’, Charities Aid Foundation, Kent.] and pinpoints messages about corporate involvement which may help fundraisers develop corporate fundraising strategies. The data give the first indications of how many of the UK's top business executives give time to charity, how much time they give and what they do. It also addresses what there is to gain for and from the charity, the senior executive and their company. The results present a picture of widespread and enthusiastic involvement of senior executives with the voluntary sector; a picture of both a deep personal commitment and of a strong sense of corporate benefit. The survey also raises several important issues and implications for corporate fundraising: should charities be doing more to attract top executives into an active relationship with them? How can they do this? What are the pros and cons of an alliance between corporate figureheads and charitable organisations; how might this relationship be viewed by the public; and how might it best be managed? This paper draws on the results of the survey to illustrate and discuss these issues. Copyright © 2002 Henry Stewart Publications