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.     

Exploring individual predictors of variation in public awareness of expressive and instrumental nonprofit brands

Expressive and instrumental functions provide a way to classify activities that take place in the nonprofit sector. These functions also provide a way to better understand individual's philanthropic involvement with certain types of nonprofit organizations. Despite the usefulness of these classifications, only a few studies have explored demographic, social, and ideological differences in individuals' philanthropic involvement along expressive and instrumental dimensions; and, no studies have explored differences in public awareness of nonprofits along these dimensions. Such awareness, though, could likely be an important precursor to an individual's philanthropic involvement. Thus, the purpose of this study is to explore whether variables known to be associated with variation in philanthropic involvement are also associated with variation in awareness of, what we categorize as, expressive and instrumental nonprofit brands. Using data from a survey of public awareness of, and attitudes toward, nonprofit organizations in San Diego County (n = 1002), our findings show that individuals are more aware of instrumental nonprofit brands than they are of expressive nonprofit brands. However, there are important individual differences to consider. We discuss the theoretical relevance of our findings and offer several practical recommendations for nonprofit administrators.     

Rhetorical framing: examining the message structure of nonprofit organizations on Twitter

• All organizations must persuade stakeholders that they are worth supporting. Organizations need donors to give, volunteers to volunteer, consumers to purchase, and general support for public funding. Because Twitter messages are restricted to 140 characters or less, organizations' message structures must be clearer and may employ traditional rhetorical techniques such as ethos, pathos, and logos, to garner support and promote action. By using content analysis, the tweets of eight charitable organizations from diverse sectors were analyzed for rhetorical content, type of communication such as two-way symmetrical or two-way asymmetrical communication, and positive or negative message frame, for one calendar month. Results of this study found that 60% of tweets employed rhetorical strategy and the majority of tweets included a positive message frame. Moreover, each of the three broad functional areas defined by Lovejoy and Saxton (2012) used ethos, pathos, and logos to differing degrees. Based on results, proposed expansions of the functional areas are also discussed. Copyright © 2014 John Wiley & Sons, Ltd.

     

Transparency of nonprofit organizations: An integrative framework and research agenda

Over the past 20 years, as the study of transparency has evolved into a burgeoning multidisciplinary field, nonprofit scholars have developed an impressive body of research on the antecedents and outcomes of the transparency of nonprofit organizations (NPOs). From both theoretical and practical purposes, it is necessary to develop an overall picture of such antecedents and outcomes, to allow scholars and NPOs to understand why, when, and how transparency should be implemented. Current studies provide a fragmented view, focused on specific elements of NPO transparency; with a systematic literature review of 76 articles, this article offers both an integrative framework of the antecedents and outcomes of NPO transparency and an agenda for research, based on a critical analysis of the integrative framework. Four relevant research orientations emerge: (1) direction of NPO transparency, (2) distinguishing actual from perceived transparency, (3) the dark side of NPO transparency, and (4) NPO transparency contingency factors. Research along these four orientations could add nuance to existing knowledge of transparency and provide key insights with regard to why, when, and how transparency works.     

Improving the financial sustainability of nonprofit organizations through tourism-related activities

One of the greatest problems facing nonprofit organizations (NPOs) is the lack of funding, which directly jeopardises their work. NPOs working in tourist destinations have the opportunity of satisfying this need through tourism, by linking the objectives of their own activities to the objectives of tourist destinations. This article aims to establish whether NPOs working in tourism have capitalised on tourism as a means for increasing their own income. In other words, do NPOs that more frequently conduct tourism-related activities have a higher level of financial sustainability, reflected in a higher share of income from self-funding activities than from donations and grants? To this end, primary research was conducted using a questionnaire on a sample of 205 NPOs whose activities impact tourism and which operate in one of the four most developed tourist destinations in Croatia with regard to tourist traffic in the past 10 years (Poreč, Rovinj, Dubrovnik and Medulin). Research results indicate that an increase in the frequency of conducting activities directly impacting tourism is paralleled by an increase in the share of income generated by active self-funding (income from selling products and providing services) and other types of self-funding (income from memberships fees and assets), with a decrease in the share of income from donations and grants. This study contributes to the existing knowledge by connecting NPOs with the tourism system and by identifying and defining opportunities for NPO self-funding through tourism as a means of improving NPO financial sustainability.     

E‐relationship development strategy for the nonprofit fundraising professional

The potential for technology to enhance the capability of nonprofit organisations is one of today's hot topics both for nonprofit organisations and their potential service providers. Organisations are still in the initial stages of determining the most effective strategies for cultivating and managing online donor relationships and accepting online donations. This paper provides an online donor relationship methodology that will help nonprofits harness the power of e‐mail and the Internet to cultivate and manage donor relationships. Also included is the summary of a study that shows how 14 well‐known US nonprofits collect donations online. Copyright © 2001 Henry Stewart Publications     

Online donation behavior in nonprofit organizations: The role of congruent processing styles

With the advent of technology, donors are increasingly donating via online channels. This shift deems it necessary for nonprofit organizations to better understand the online donor behavior. As such, the purpose of this paper is twofold. First, we investigate if nonprofit organizations are perceived differently in terms of their cognitive and affective natures. Then, we examine how different consumer processing styles, i.e. cognitive and affective, interact with consumer perceptions of nonprofit cognitive/affective orientations in influencing their donation intentions. Our results indicate that consumers with a high need for cognition are more willing to donate to predominantly cognitive nonprofit organizations, while those with high need for emotion are more willing to donate to predominantly affective nonprofit organizations. Based on these results, we suggest that nonprofit organizations can garner more donations if they request funds from donors whose processing styles are congruent with the organization. Additional recommendations for future research are provided.     

Online privacy and security practices of the 100 largest US nonprofit organizations

• Although online consumer privacy has been an important issue in the commercial realm for more than a decade, nonprofit organizations (NPOs, or nonprofits, for short) have just begun to address the topic recently. No published scholarly research has examined the online information practices of the largest NPOs with regard to privacy and security issues. The absence of data leaves one unable to empirically gauge the extent of NPO compliance with the Federal Trade Commissions (FTCs) suggested information practices. Such an investigation would be useful not only to US nonprofits but also non‐US nonprofits that are reaching US donors via their web sites.
• This study examines the online information practices of The Nonprofit Times 100 web sites and compares their practices to that of their commercial counterparts. The NPO web sites were found to collect just as much, and in some cases even more, personally identifying information as the commercial sites. The NPO web sites were more likely to display a privacy disclosure and privacy seal. Of critical concern, and not assessed in the commercial samples, is that nearly all of the NPO sites post personally identifying information (of individuals who are not employees).
• The current study provides benchmarks useful for assessing security issues pertaining to the collection, use, and even posting of personal information for NPO web sites. It also proposes actions for improving online security and privacy with the hope of encouraging more discussion of these important issues within the NPO community.

Copyright © 2008 John Wiley & Sons, Ltd.     

CSR and service quality in nonprofit organizations: the case of a performing arts association

• The relationship between corporate social responsibility (CSR) and marketing performance has been widely investigated recently, but mostly in relation to for-profit companies. This paper highlights the importance of this topic for nonprofit organizations (NPOs). Focusing on an Italian NPO operating in the performing arts and entertainment industry, two empirical studies (a quantitative survey and a qualitative exploratory enquiry) prove the strategic relevance of CSR in nonprofit contexts. The results demonstrate that CSR can be considered an additional dimension of the customer perception of service quality in NPOs and reveal that customer perception of the social responsibility of the studied NPO is strongly linked to its institutional mission and to the modalities through which it pursues that mission.

Copyright © 2014 John Wiley & Sons, Ltd.     

Fit in celebrity–charity alliances: when perceived celanthropy benefits nonprofit organisations

This study investigates the effect of celebrity–charity co‐branding fit on perceived celebrity philanthropy (celanthropy), attitude towards the celebrity and charity, as well as donation intention. We manipulate celebrity–charity functional fit through a 2 (celebrity: comedian vs athlete) × 2 (charity: comedy related vs sports related) factorial design whilst controlling for celebrity credibility (attractiveness, trustworthiness and expertise). Results show that a functional fit between the celebrity and charitable organisation encourages positive altruistic attributions in terms of perceptions of celebrity social responsibility, and egoistic attributions, with regards to celebrity and charity attitudes, and donation intention. Finally, results demonstrate that celebrity–charity fit (athlete (comedian) with sports related (comedy related) charity) can promote positive attitudes towards a celebrity and charity brand, as well as donation intention, with these relationships mediated by perceptions of celebrity social responsibility or philanthropy. Findings from this research are able to aid nonprofit organisations and celebrity brand managers in the creation of effective and persuasive co‐branding alliances. Copyright © 2014 John Wiley & Sons, Ltd.     

Addressing social-business tensions in hybridized nonprofit organizations: The contribution of strategic human resource management

Nonprofit hybridization represents the adaptive response to a turbulent external and internal environment leading to tensions between contradictory goals (e.g. social and business goals). Although research has provided insights into the strategies for addressing the tensions stemming from hybridization, it has paid less attention to how strategic human resource management (SHRM) may play a role in managing these social-business tensions. Given the increasing complexity nonprofit organizations (NPOs) face, this hybrid context presents a valuable opportunity to examine the concept of SHRM “fit” in terms of different stakeholder demands, diverse and competing goals and resulting tensions. This article aims to conceptualize and contextualize SHRM fit in hybridized NPOs to gain a better understanding of how organizations can orientate their systems and practices to manage competing demands stemming from hybridization. Hereby, we use SHRM fit to illustrate the opportunities for and limitations on practice within a hybrid context. Bringing the nonprofit and hybrid literature together, we develop a typology of nonprofit hybridization that distinguishes NPOs according to their financial and social orientation and specify the tensions and management approaches that dominate these types. Drawing on the concept of SHRM fit, we advance a framework and propositions on how the management approaches in each of the types result in different configurations of vertical and horizontal fit that address social-business tensions. Hereby we extend current debates in the hybridization literature on tensions between opposing goals and research on SHRM approaches in NPOs and contribute to a theoretically-informed understanding of the implications of tension management approaches in variants of hybrid organizations.     

Evaluation in nonprofit organizations: A defense of perception as a managerial and scientific tool

Nonprofit organizations (NPOs) are subject to multiple pressures from their stakeholders. Stakeholders are at the same time the target of the organization's mission, the evaluators, the providers of resources and the demanders. This article is an essay that defends reciprocal perception as a managerial tool. The proposed intellectual path leads to the revalorization of stakeholder perception as a very useful practical and scientific tool for the management and study of NPOs. However, perception has limitations that the introduction of the concept of reciprocity can address.     

Finding the funds in fun runs: exploring physical activity events as fundraising tools in the nonprofit sector

An increasingly popular form of raising funds in the nonprofit sector is the special event that involves some form of physical activity. This paper describes a study that tracked 50 events over nine months in order to explore the phenomenon of physical activity events, their function as a solicitation strategy and as a public awareness/relations tool, and to gauge how these events met the needs of participants who donated their money and energy to a cause. Data were collected by means of participant observation at 12 events and interviews with 12 participants and 12 hosting organisations. Using a social marketing framework and diffusion of innovations theory as an approach to making sense of the data, the results suggest that events serve two main purposes: celebrating a cause and offering an event that satisfies the physical activity interests of participants, and that events appropriately act as fundraising and publicity tools. Implications for adopting a social marketing orientation so that nonprofit organisations can hasten the diffusion process by tailoring events to meet the needs of participants, and for further research are discussed. Copyright © 2003 Henry Stewart Publications     

Understanding the Change–Cynicism Cycle: The Role of HR

Employee change cynicism is an unintended consequence of organizational change, which can undermine the effectiveness of change initiatives. Based on social information processing theory, we examine the impact of two human resource roles (administrative expert and strategic change agent) on the relationship between the quantity of organizational change and employee change cynicism. Using multilevel data from 1,831 employees in 70 organizations, we find employees who are exposed to more organizational change report higher levels of change cynicism. However, the strength of the organizational change–cynicism relationship is affected by the role of HR in the employees’ organizations. When HR undertakes an administrative expert role, change is more likely to generate change cynicism. When HR undertakes a strategic change agent role, change is less likely to generate change cynicism. Our results suggest that organizations need to think carefully about the role of HR during organizational change and encourage HR to adopt a strategic change agent role. © 2015 Wiley Periodicals, Inc.     

Website development by nonprofit organizations in an emerging market: a case study of Thai websites

• Nonprofit organizations are pertinent players in making the world a better place. Their websites aid in fulfilling their socially beneficial missions by being a platform to present themselves, to interact with stakeholders around the world, and to perform e‐transactions to raise funds. This interdisciplinary research explores nonprofit websites in Thailand, an emerging market, to determine their progress through an adapted e‐business stage model. A manual website decoding process was used to determine the development of websites, within the sector. On average, almost three‐quarters of the websites offered interactivity and just less than half conducted online transactions, but internationally connected organizations in Thailand were significantly more likely to do so. The findings suggest that while nonprofit websites in Thailand are progressing, there is significant lag between local Thai websites and those that have international connections. While the model successfully provided new data for understanding nonprofit websites in less developed markets, it may need to be modified in future studies.

Copyright © 2016 John Wiley & Sons, Ltd.     

Electronic mail,privacy, and the public sector: Guidelines for public employees and organizations

What privacy rights are public employees entitled to when using their electronic mail systems? Are they entitled to privacy rights in the messages they send or receive? The setting, public or private, is crucial to determine what privacy rights exist for the employee. Unfortunately, no public sector electronic mail privacy case has been considered by the courts. Nevertheless, E-mail privacy guidance does exist. This article investigates previous privacy considerations provided in other workplace situations—cases that involve technologies other than E-mail—in search for common rules established by the Supreme Court. With this foundation, the article then applies the same rules to an electronic mail environment and provides guidelines intended to assist public managers in the creation or reevaluation of their organization’s electronic mail privacy policy.     

Serving two organizations: Exploring the employment relationship of contracted employees

Although growth has occurred in contract employment arrangements both in the public and private sectors, scant research has been conducted on the organizations and employees affected by these arrangements.This study examines the employment relationship of long‐term contracted employees using a social exchange framework. Specifically, we examine the effects of employee perceptions of organizational support from contracting and client organizations on their (a) affective commitment to each organization and (b) service‐oriented citizenship behavior. We also examine whether felt obligation toward each organization mediates this relationship. Our sample consists of 99 long‐term contracted employees working for four contracting organizations that provide services to the public on behalf of a municipal government. Results indicate that the antecedents of affective commitment are similar for the client and contracting organization. Employee perceptions of client organizational supportiveness were positively related to felt obligation and commitment to the client organization. Client felt obligation mediated the effects of client perceived organizational support (POS) on the participation dimension of citizenship behavior. Our study provides additional support for the generalizability of social exchange processes to nontraditional employment relationships. Implications for managing long‐term contracted employees are discussed. © 2006 Wiley Periodicals, Inc.     

Exploring sources and outcomes of trust and commitment to nonprofit organizations: The case of Amnesty International Portugal

The interactions between customers and organizations have been regarded as a core aspect in cocreating and developing new products and practices. The current study explores these interactions in the context of citizens and nonprofit organizations. The study comprises two parts: (a) a qualitative approach using interviews and the analysis of social networks to better understand the organization's social media marketing practices and corresponding outcomes and (b) a quantitative approach to analyze antecedents and outcomes of trust and being committed to participate in a nonprofit organization such as Amnesty International. From the qualitative approach, the findings highlight that Amnesty International uses social media (Facebook) to share information, and citizens tend to consider sharing posts, but they do not express new ideas or interact with the organization. These findings contribute to structure the model analyzed in the second stage of the research. Regarding the qualitative approach, the results show that organizational credibility is the most significant driver of trust followed by communicative ability. Affectively commitment to participation and relationship perception act as outcomes of overall commitment.     

Cash may be king,but goods are queen: Marketing for noncash donations by nonprofit organizations

To thrive and survive, nonprofit organizations should always seek new sources of donations. Although many of these entities are laser-focused on obtaining cash and other similar forms of funds from their donors, they should not forget the abundant donation type that is also available to them: noncash goods. The process of marketing to donors for these goods is unique compared to fundraising for cash. Consequently, the goal of this study is multifaceted: to remind nonprofit organizations of the availability of noncash goods as a donation source, encourage them to unlock this trove through marketing, and provide them with recommendations on how to do so.     

“I'll donate money today and time tomorrow”: The moderating role of attitude toward nonprofit organizations on donation intention

Across two experiments, this study provides support for the concept that money and time are marked by psychologically distinct constructs. As temporal distance increases, preferences are more likely to be based on the value associated with a high‐level construal of options than the value associated with a low‐level construal of options. That is, as potential contributors are asked to donate later, high‐level featured resources (i.e., time) take focal precedent over low‐level ones (i.e., money) in judging preference for donation methods. This study also found that the match effect between temporal distance and construal level holds only when the level of attitude toward nonprofit organization (NPO) is relatively favorable. However, donation intention is enhanced under mismatch conditions when the level of attitude is less favorable. That is, when potential contributors hold relatively less favorable attitudes toward the NPO, those who are requested to make an expediting decision of donation are more likely to have higher intention to donate with a high‐level construal resource. This study attributed the finding to the shift of people's focal resource through their level of attitude toward the NPO.