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.     

Just keep it simple: a field experiment on fundraising letters

• This paper studies how the use of a colour picture in fundraising letters affect response rates and the amount donated in a fundraising campaign. Envelopes, with a full colour picture were tested against envelopes, without a picture in a controlled field experiment at a national religious charity in the Netherlands. Letters (89 937) were sent out to planned as well as incidental donors in four experimental groups. Results show that packages with more graphics yield lower donations, because both response rates are lower and the amount donated per letter is lower. We interpret this finding from donor aversion against high fundraising costs.

Copyright © 2007 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.     

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.     

The million dollar donor journey: Stages of development for high‐net‐worth women donors

Most charitable giving research focuses on individual donors at a specific point in time and uses quantitative surveys with limited data about donors' experiences. This study uses reflective interviews to examine the life trajectories of a cohort of women donors who have made gifts of $1 million or more to causes that benefit women and girls. By drawing from developmental psychology, we illustrate the iterative process of learning about giving—shaped by life experiences—that comprise the journey to becoming a million‐dollar donor. We find that, in their journeys toward making their million‐dollar commitment, women donors followed a shared trajectory with distinct stages and prompts for progression. Our findings provide guidance for fundraising professionals to recognize the stages of a potential donor's readiness to give and to facilitate progression in the journey, thus increasing the potential for more large‐scale gift commitments in the future and deepening the donor–fundraiser relationship.     

Back to school? What the voluntary sector can learn from the education sector

Almost unnoticed by the charitable sector as a whole, a quiet revolution has transformed educational fundraising over the last decade. From a minor and wholly owned subsidiary on the periphery of the industry, the education sector has become a highly professional and successful multinational, which in some respects is now the market leader. This paper argues that the whole of the charitable sector could benefit by taking a close look at the experience of educational fundraisers, and that such an examination could have profound repercussions in the way most fundraisers treat their donors and organise their operations. Specifically, it suggests that the nature of ‘relationship fundraising’ actually means that every donor must be treated as an individual by an individual fundraiser, irrespective of the size of their gift, and that the work of a fundraising department should not work towards merely giving the impression of such treatment.     

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.     

Integrated donor management: Using telemarketing to increase donor affinity and fundraising income

This paper introduces the concept of integrated donor management (IDM). This is defined as combining two or more development methods to maximise a donor's affinity to an organisation. With IDM, all activities are designed to educate, cultivate and appreciate donors. The telephone is considered within this framework and specifically its relationship is explored with direct mail, major donors, planned giving and donor acknowledgement. Guidelines are provided for using the phone responsibly to increase donor affinity and fundraising income.     

The fundraising efficiency in U.S. non-profit art organizations: an application of a Bayesian estimation approach using the stochastic frontier production model

This article examines how efficient art organizations are in raising funds from private giving. We measure fundraising efficiency using a Bayesian estimation approach using the stochastic frontier production model. We show that fundraising efficiencies are generally quite low for art organizations in the U.S. when private giving is only considered as a fundraising output; however, when the effect of fundraising on ticket sales is considered, fundraising efficiencies improve substantially. We also show that government grants have a negative impact on fundraising efficiency and therefore partially crowd out private giving.     

Community fundraising 2.0—the future of fundraising in a networked society?

• Over recent years, individual donor fundraisers worldwide have seen the beginnings of a dramatic shift in the way that consumers react to mass fundraising communications, resulting in many of the ‘interruptive’ direct marketing approaches on which individual donor fundraising programmes are traditionally reliant delivering worse and worse returns. This paper examines how the growth of a networked society of increasingly sophisticated and independently informed consumers has contributed to this shift; illustrates how the rise of Web 2.0 has accelerated its impact and considers how individual donor fundraising may have to evolve to more effectively respond to this in the future.

Copyright © 2009 John Wiley & Sons, Ltd.     

The ecology of internal workplace giving at Indiana University: a case study of faculty and staff campus campaign communications and fundraising

• This collective case study examines university-specific philanthropic cultures, campus fundraising campaigns, and their impact on faculty and staff giving to the university. Drawing on both qualitative and quantitative data, the study documents fundraising strategies through interviews and materials analysis and assesses their results through quantitative data on characteristics of donors and their philanthropic gifts. Examination of fundraising methods reveals differences between demand and supply-side communication strategies with faculty and staff members as internal stakeholders and donors. Concentrating on the campuses of Indiana University, a large, highly diverse public institution in the American Midwest, this study includes analysis of the outcomes of the fundraising process across institutions of different sizes, demographics, and philanthropic cultures. The findings underscore the importance of exploring the characteristics that influence employee donation behaviors as context for the creation and enactment of fundraising campaigns and highlight the need for future research in the area of workplace giving.

Copyright © 2014 John Wiley & Sons, Ltd.     

Advanced techniques of donor recognition

This paper examines the issue of ‘donor recognition’ in fundraising, and how recent technological advances have given charitable organisations new strategic tools in which to recognise and protect their donor base. In providing real-life examples of how American charities are using new donor recognition techniques, this paper seeks to provide specific options of how any charity can maximise the net income potential of every donor on its file.     

We the living: the effects of living and deceased donor stories on charitable bequest giving intentions

Choosing messages to encourage charitable bequest giving may be particularly challenging given sensitivity to personal mortality reminders. Previous research suggests that people often react to mortality reminders with avoidance, including distancing themselves from those associated with death. We compare the effects of otherwise similar living and deceased bequest donor stories on subsequent intentions to leave a charitable bequest. Although both story types significantly increased subsequent intentions to leave a charitable bequest, living donor stories consistently outperformed otherwise identical deceased donor stories. Fundraisers may do well to emphasize stories of living planned bequest donors and de‐emphasize death and the deceased in charitable bequest fundraising messaging. Copyright © 2016 John Wiley & Sons, Ltd.     

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     

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.     

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.     

Women as philanthropists: Leading the transformation of fundraising

This paper provides an overview of women's motivations and potential as philanthropists. It includes demographic information that can help fundraisers approach and communicate with women of different generations and life stages. The conclusions are based on qualitative research conducted by the author and others. It explores some of the barriers to women's giving and offers specific recommendations for involving more women as donors. Finally, it explains how women as donors will help transform the fundraising profession and prepare nonprofit institutions for a changed funding environment in the future.     

Lost in translation: A sociological study of the role of fundraisers in mediating gift giving in non-profit organisations

Recent years have seen a significant growth in the technical literature exploring charitable giving and fundraising. However, there is little empirical research on the actual workings of the fundraising process within non-profit organisations. In this paper, the day-to-day practice of fundraising is analysed from a sociological perspective that draws on the theories of the gift proposed by Mauss ( 1954 ), Titmuss ( 1970 ), and colleagues to propose an alternative, more complex giving model to strangers. Using qualitative data drawn from 44 interviews with fundraisers and their colleagues across 14 organisations, this study examines how fundraisers build and maintain long-term giving relationships with the individuals who provide financial support to non-profit organisations. Findings suggest that the primary gift giving relationship exists not between the giver and beneficiary but rather between the giver and fundraiser. The fundraiser, in this instance, actively employs tactics of reciprocity to both secure new gifts and ensure that givers continue to support their organisation. In doing so, fundraisers construct a narrative of the donor's imagined direct connection to the beneficiary and their “good gift”. Simultaneously, the fundraiser works with colleagues to construct the idea of the caring, connected, and sacrificial donor as a means to solicit their support in maintaining the continued gifting from these supporters. The paper concludes with a consideration of the ways in which these narrative constructions are incorporated into fundraising and organisational strategies; and two implications for perceptions of the role of philanthropy and fundraising.     

Gendered giving: the influence of social norms on the donation behavior of men and women

• We study if men and women are subject to different influences when determining their level of charitable giving. In particular, we examine differential sensitivities to social norms among donors to a public radio station. Our survey of 975 donors finds that male donors are more likely than female donors to use social norms to inform their own behavior. We conduct a laboratory experiment to investigate the influence of social information on social norm formation and giving. Our results suggest that temporarily created social norms influence giving by men significantly more than by women. This result replicates and establishes the causal relationship between social norms and donations suggested by our field findings. We conclude with a discussion of theoretical and practical implications of these results.

Copyright © 2009 John Wiley & Sons, Ltd.     

Donor lifetime value: An empirical analysis

The successful quantification in monetary terms of the value of a donor to a voluntary organisation is absolutely essential to the subsequent development of fundraising strategy. The question most voluntary organisations have failed to address, however, is how best to calculate this value. Many fundraisers continue to examine value historically, looking at the total amounts given to date. Such an approach fundamentally ignores the future or lifetime potential of a given charity donor and can lead to the development of contact strategies that are wholly inappropriate given the worth of that individual. It is the purpose of this paper to calculate the lifetime value (LTV) of various categories of donor and to explain how charities might use such information to inform the development of their fundraising strategy.