Taking the quantum leap: nonprofits are now in business. an Australian perspective

The fact that they need to deliver more essential social services is accepted by most professionals working in nonprofit organisations. Yet, needing to become more competitive, increasingly ‘businesslike’ and to start creating partnerships with profit‐driven businesses may require a quantum leap to take place. This hard reality imposed by recent changes in government policy is challenging for many social service workers still coming to terms with a decade of turbulent and changing times. From origins of ‘she'll be right mate’ and a community‐held belief that it is the government's responsibility to finance all essential social services, today's nonprofits are increasingly fighting over smaller funding budgets and feeling the pinch as they have to implement business practices that will ultimately make them more accountable, profitable and attractive to prospective business partnerships. The purpose of this paper is, therefore, to present an option to larger Australian nonprofit organisations keen to move away from a dependency model of service delivery and open to exploring the possibility of implementing a marketing communications charter which includes the appointment of a business development manager. Copyright © 2003 Henry Stewart Publications     

Not-for-profit marketing in the real world: an evaluation of Barnardo's 1995 promotional campaign

This paper examines the extent to which the academic literature underpinning marketing communications appears in the practice of charities' marketing. The first part of the paper investigates the theoretical background surrounding the marketing communications of nonprofit-making organisations drawing from the main academic papers written since the subject was opened in 1969. This theory is then compared and contrasted with the results of a case study concerning a major campaign by Barnardo's, one of the United Kingdom's largest charities. Resultsindicatethatsomeofthepoints highlighted by the academic literature are found in the marketing communications strategy of Barnardo's. Nevertheless, a range of areas is ripe for improvement, including improved systems for obtaining feedback from the target audience on the message that they received. Copyright © 1999 Henry Stewart Publications     

Five direct marketing strategies for nonprofit organisations

This paper outlines five direct marketing strategies which nonprofit organisations are following; Donation-led, Intimacy, Audience-led, Product-led and Multi-product. The purpose in identifying these strategies is to show that nonprofit organisations have a greater range of strategic choices than is often assumed. The second part of the paper looks at the building blocks for a successful direct marketing strategy and shows how they differ between the five strategies. Direct marketing is used as a generic term throughout this paper. Relationship marketing is used to indicate relationship building, as opposed to simply communicating directly.     

Relationship marketing,audience retention and performing arts organisation viability

Marketing strategy in performing arts organisations has become particularly important in the increasingly competitive environment in which the arts operate. Since the late 1980s there has been a necessary shift in focus to audience development away from product development. This change in focus is being encouraged to ensure the long‐term viability of performing arts organisations (PAOs) and micro‐economic reform. While government reports have recommended strategies aimed at building audience‐based recognition, this is an expensive approach for many PAOs and does not produce short‐term returns. Little attention has been paid to building enduring relationships with existing audiences as a way of having a more dramatic impact on PAOs' long‐term viability. This paper explores this theme through relationship marketing and the implication of retaining existing audiences. The paper identifies the changing cultural environment which has led to the importance of marketing. It then explains the concepts of relationship marketing and its pertinence to PAOs' viability by presenting a loyalty ladder. The structure is modelled as a dynamic conceptualisation of the relationships (audience and organisation) to assist arts managers to decide whether to focus their efforts on catching or keeping customers to maximise earned income. Copyright © 2002 Henry Stewart Publications     

The role of green innovation and hope in employee retention

Green innovation is increasingly receiving attention in organisational behaviour and strategic management literature. However, understanding employee's preferences for organisations that have adopted innovative environmental practices have received little attention. This study tests a framework that examines the relationship between employees' preferences for innovative green organisations, hope, and intentions to stay. Data were collected from 403 employees in Australia. Results show that employees' preferences for green innovation drive the emotional state of employee hope, which has a positive effect on employees' intentions to stay with the organisation. This study offers implications for academics and managers, advancing the literature on green innovation, recruitment, retention, and organisational behaviour.     

Attracting members to avocational nonprofit organisations

For avocational nonprofit organisations, ‘marketing’ means attracting and retaining members. Avocational organisations experiencing membership difficulties may offer a variety of explanations, the most frequent one being a purported shrinkage of leisure time for the average American. The 68 largest avocational nonprofit organisations in the USA were studied in an attempt to identify common factors associated with membership success, and to confirm or disprove commonly offered explanations for membership distress. Very few general attributes could be found; in most cases, an organisation's success or distress seem to stem from factors that are specific to that organisation. Copyright © 1999 Henry Stewart Publications     

Building e‐support for cause‐related marketing through strategic alliances

New opportunities for nonprofit organisations to reach new donors and volunteers are being generated by an accelerated interest in cause‐related marketing on the part of both consumers and business firms, in conjunction with the emergence of the Internet. Together, these conditions have created a climate conducive for nonprofit alliances with corporations to become one of the fastest growing forms of marketing today. This paper examines online cause‐related marketing from the fundraiser's perspective, and sets forth a series of marketing management implications of building relationships with businesses and their customers as potential donors on the Internet. Copyright © 2000 Henry Stewart Publications.     

Talent responses to talent status awareness—Not a question of simple reciprocation

How to manage talent effectively is a key question in organisations. Yet we still know relatively little about talent's psychological reactions to their exclusive status. Based on psychological contract theory and research on status, this study analyses a sample of 321 employees identified as talent by their organisations, only some of whom were aware of their exclusive talent status. The results provide evidence that talent status awareness moderates the relationship between a range of employer inducements and talent obligations, such that it increases the importance of some inducements while diminishing that of others. The study contributes to the talent management literature by isolating specific effects of talent status awareness and calling into question extant evidence of its direct positive effects on talent attitudes. The findings also have implications for talent status communication, talent management, and future theorising of talent reactions to their exclusive status.     

Can relationship marketing enhance strategic thinking in the public sector? A study of the perceived relationship between subsidised theatres and their government funders/regulators

This paper reports on the findings of research into the perceived relationships between publicly funded theatres and their key funders/regulators. This is part of a wider study into whether successful publicly funded arts organisations are more likely to apply a relationship marketing approach. Relationship marketing may help to remove a short‐term tactical focus that tends to exist in public sector organisations generally and publicly funded arts organisations particularly. Three UK producing theatres' relationships with the Arts Council and their respective local authorities are analysed and findings suggest that building relationships with this stakeholder type may well produce more strategically focused and successful theatres. Copyright © 2004 Henry Stewart Publications     

Optimal Loyalty‐Based Management

We study an agency model in which an entrepreneur selects a manager from a candidate set. The selected manager's effort improves the project's potential environment, and is a hidden action. The realized project environment is the entrepreneur's private information. A manager's utility has two components—(i) loyalty, with which the manager values the organization's profit, and (ii) selfishness, with which the manager values the monetary transfer he receives from the entrepreneur. We find that if the manager's task is easy enough, it is optimal to use a purely loyal manager. Otherwise, it can be optimal to use a manager with mixture of loyalty and selfishness—the manager's mixed motivation alleviates the entrepreneur's misrepresenting incentive, and as a result, the output distortion in the optimal contract can be reduced. In addition, when it is optimal to use a manager with mixed motivations, the entrepreneur selects someone who is more selfish than loyal.     

New value partnerships: the lessons of Denny's/Save the Children partnership for building high‐yielding cross‐sector alliances

While business and nonprofit organisations have long used alliances within their own sectors to address specific needs, increasingly they are turning to cross‐sector partnerships that benefit both parties while they serve the common good. In the last decade, marketing alliances between businesses and social sector organisations have become increasingly common as ways for companies to achieve business objectives and for social sector organisations to raise their visibility and attract new resources. The alliance between Denny's and Save the Children provides an example of a noteworthy marketing partnership that shows how a cross‐sector alliance can assist a company with a damaged public image to build a new public identity while enabling an international nonprofit organisation to create an ambitious programme for US children. As a new value partnership, a long‐term, high yielding alliance between businesses and social sector organisations, this relationship is characterised by several elements: communication, opportunity, mutuality, multiple levels, open‐endedness, and new value, forming the acronym COMMON. Copyright © 2001 Henry Stewart Publications     

Examining company experiences of a UK cause‐related marketing campaign

The primary aim of the research was to examine commercial organisations' perceptions of the benefits of cause‐related marketing and the extent to which these benefits were achieved through their involvement with a UK cause‐related marketing campaign. The study also explored companies' views on the management of relationships between the profit and nonprofit organisations involved in a cause‐related marketing partnership. The research was conducted with companies involved in the cause‐related marketing campaign of one UK charity. Analysis of the data, gathered by means of a postal questionnaire, revealed that the benefits of cause‐related marketing perceived to be the most important in this context were increasing press coverage and raising brand awareness. Other important benefits included the opportunity to demonstrate social responsibility and enhance corporate reputation as well as building customer loyalty and increasing sales. Benefits achieved through participation in the cause‐related marketing campaign were limited to improved corporate reputation and social responsibility and press coverage. Recommendations for improved management of the partnership heavily emphasised joint planning processes, at the strategic and implementation levels. Copyright © 2003 Henry Stewart Publications     

How responsive are charities to market needs?

Voluntary organisations have a unique set of stakeholders. Their services are paid for, not by their customers, but by ‘purchasers’ such as social services or grant-making trusts. This separation of customers from purchasers denies voluntary organisations a direct market mechanism for feedback on their services. As a result, charities are in danger of providing outdated poor-quality services for years, while convincing purchasers that they are still doing a good job. This paper examines the extent to which voluntary organisations do in fact respond to market needs, despite their undemanding environment. The paper draws on research from 15 national disability charities to explore the extent to which charities are market orientated, and to identify examples of best practice in the field. The paper concludes by identifying the critical role played by charity chief executives in urging their own organisations to adopt marketing principles. Copyright © 1999 Henry Stewart Publications     

Using creativity to achieve an entrepreneurial future for arts marketing

• The marketing concept fails to explain marketing behaviour of small firms. Similar comments are now being made of large firms. This gap between theory and practice is even more significant in non-profit and arts organisations where sector specific philosophies often determine how marketing is embraced, with its underlying notions of the customer and profitability. Many of these organisations must overcome severe resource constraints by thinking creatively. This paper investigates the relationship between art, marketing, entrepreneurship and creativity in order to reach a clearer understanding of how creativity can assist both the arts organisation and those involved in researching the sector. There have been increasing calls within the academic marketing community to instil a creative philosophy within the research process. This call has not resulted in much research on the phenomenon within marketing, and certainly not from a nonprofit perspective. This paper discusses creativity as a concept drawing on a diverse range of literatures outside the management discipline. The link between creativity, marketing, entrepreneurship and art is analysed. Justification of the incorporation of creativity in the research process is presented for practitioners and theorists in marketing and the arts, so that they can learn from each others' disciplines. Implications for future research are presented, where creativity is viewed as the centre of a non-linear, free thinking understanding of artistic truth.

Copyright © 2005 John Wiley & Sons, Ltd.     

Lack of early engagement: a pre‐eminent barrier to Australian university bequest giving?

• Decreased government funding has placed increasing financial pressure on Australian universities. Currently Australian universities receive 6.6% of all donations to nonprofit organisations in Australia while universities in the United States attract 14%. These figures suggest there is considerable room for improvement for Australian universities. Efforts directed towards adding to knowledge of philanthropy to universities in Australia are, therefore, very topical at present. Despite acknowledged differences between the types of literature on gift‐giving it predominately centres on the motivation to donate to nonprofit organisations during an individual's lifetime (in vivo giving) with less focus on bequests. This exploratory study sought to gain insight into barriers to Australian University bequests. Lack of alumni engagement in Australian Universities was identified as a primary bequest barrier. Barriers identified previously in the literature (e.g. communications quality, performance, insensitive marketing) were considered secondary barriers to bequests. The results suggest a long term strategy is needed for Australian Universities seeking to improve donations. Universities need to engage students from the start of their academic tenure in order to be considered for a bequest. This paper proposes a model which highlights the consequences of this lack of early engagement and identifies key points in the academic and post‐academic process where successive challenges increasingly diverge the student from the university's bequest prospects.

Copyright © 2009 John Wiley & Sons, Ltd.     

Contracting on the Stock Price and Forward-Looking Performance Measures

Abstract

We examine the use of earnings, forward-looking performance measures and stock prices in managerial compensation. When the firm's owner and its manager have identical time preferences, the stock price is not useful for motivating the manager, as it is a noisy aggregation of a forward-looking measure and future earnings. In contrast, when the owner and the manager have conflicting time preferences, the noisy stock price is useful for contracting. If the manager has no access to banking and cannot trade the firm's shares, the timeliness of the stock price dominates the extra risk imposed by its noise. At the same time, forward-looking performance measures (such as customer satisfaction) can induce a desirable allocation of management effort between the short term and long term more efficiently than the stock price can. Forward-looking performance measures and the stock price are thus not direct substitutes in rewarding farsighted effort.     

Applying the marketing concept to cultural organisations: an empirical study of the relationship between market orientation and performance

A recent trend in nonprofit organisations is an emphasis on business management and concepts. This paper examines the application of the marketing concept to nonprofit arts organisations through an analysis of the relationship between market orientation and organisational performance. Data were collected from arts organisations in two large Canadian cities, and a structural equations model was developed to test the impact of marketing activities and culture on three performance variables (customer satisfaction, peer reputation and resource attraction). The analysis shows that the model fits the data well and that six hypotheses pertaining to the relationship between market orientation and organisational performance were supported. The study concludes that those organisations that implemented more market‐driven activities into their marketing plans were more likely to develop a market‐oriented internal culture. A market‐oriented culture not only predicted a growth in resources and higher levels of customer satisfaction, but also a growth in reputation among peers. Copyright © 2002 Henry Stewart Publications     

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.     

Employee perceptions and their influence on training effectiveness

Studies of the benefits of human resource development (HRD) for organisations have assumed a direct connection between training strategy and a hierarchy of performance outcomes: learning, behavioural change and performance improvement. The influence of workplace practices and employees' experiences on training effectiveness has received little attention. This study investigates evaluation strategies designed to elicit greater training effectiveness, and explores the influence of trainees' perceptions and work environment factors on this. Drawing on detailed case study findings, the authors highlight the importance of management practices, trainees' perceptions of the work environment and systems of reward in explaining behaviour change after training.