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.     

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.     

Legacy fundraising: a practical guide to the basics

• Remember a Charity, the public awareness campaign run by over 130 charities in the UK, has stated that donations in wills are the largest single source of voluntary income for charities—currently worth £1.3 billion per year (April 2005).
• So can legacies to charity still be described as just windfall money? Should charities spend precious funds on promoting legacy giving when it is difficult to monitor results? It so, what is the message? Who are the target audiences? What form should legacy promotional literature take? What part could or should solicitors and funeral directors play in legacy campaigns? Patrick Wise looks back on his twenty plus years of experience in the world of charitable legacies, and gives his views on the answers to these questions, and why he thinks all charities should take legacy promotion very seriously.

Copyright © 2005 John Wiley & Sons, Ltd.     

Using data in legacy fundraising: a practical approach

• Legacies provide a major source of income to charities, and their importance is only likely to increase with the passing on of the baby-boomer generation. Legacy fundraising is a long-term process, based on developing relationships with donors over time. Data have a key role to play in the development of these relationships, allowing legacy fundraisers to measure and track their donors, and to contribute to the development of effective fundraising strategies. This paper discusses the effective collection and use of data in legacy fundraising, from consolidating data, to analysing the results and building legacy targeting models. The authors discuss how these principles have been applied in UK-based charity, Help the Aged, in conjunction with their Data Agency, Tangible Data (formerly Talking Numbers) and to give practical advice on how they may be implemented in other organisations.

Copyright © 2009 John Wiley & Sons, Ltd.     

Just get it right! Measure it and fix it: the only sure route to 98-percent inventory record integrity

Call it what you want: Back to Basics, Do it Right the First Time, or simply Inventory Integrity. There is no escaping the fact that accurate inventory just may be the most important requisite for any successful business or any business improvement effort. Good decisions require good facts, not just a good imagination or high hopes. Inventory, which is often the largest asset on the books, forms the basis for major and far-reaching business decisions every single day. If it is not accurate, then just imagine how good the decisions will be.     

Performance feedback in a group contest: A field experiment on electricity conservation

We conduct a field experiment on electricity conservation to study whether revealing both the competitive state and the social state in a group contest affects individual beliefs and efforts. Our experiment randomizes group composition, participation, and types of information received in the contest. We find that contestants without feedback about relative performance had difficulty assessing their group's competitive status, and laggards within a group tended to be overconfident about their relative contribution. In addition, we find that contestants receiving both competitive and social information were more likely to have correct beliefs about their positions during the contest and exerted the most effort. Meanwhile, contestants receiving no performance feedback did not behave differently from those who did not participate in the contest. Overall, contestants reduced their energy use by 10% during the contest. Our results support the notion that providing feedback is important in a group contest.     

Internationalisation of British fundraising charities: a two-phase empirical study

• A two-phase mixed methods (qualitative and quantitative) study was undertaken to identify and then to confirm the main dimensions and the principal antecedents of the internationalisation behaviour of a sample of British charities known to engage in foreign operations. Specifically the investigation examined the factors that explained charities' decisions to enter foreign countries, the motivations and practical methods involved and the time periods elapsing between first and subsequent entry. Outcomes were compared against theories of internationalisation developed by previous studies completed in the commercial domain. The approaches to internationalisation adopted by 15 organisations were established, and the generalisability of these approaches tested via a mail survey that elicited 238 responses. Least squares, Cox time and logistic regression analyses were completed to determine the factors that significantly influenced the extents and timings of the sample members' international activities. It emerged that some but not all of the considerations that have been found to affect the internationalisation of commercial firms also impacted on the patterns of internationalisation pursued by many of the sample organisations, especially managerial inclinations and participation in networks. However, psychic distance was seemingly irrelevant to charities' internationalisation decisions. Rather, a construct termed for present purposes as ‘philanthropic imperative’ constituted a crucial determinant of behaviour. The results imply that charities' levels of involvement in networks should be encouraged and that charity support organisations need to develop their institutional networking facilities. Also, charity managers should question whether the most favoured mode of entry to foreign countries (i.e. the ad hoc project partnership (PP)) is necessarily the most effective.

Copyright © 2009 John Wiley & Sons, Ltd.     

Best practices in noncommercial radio fundraising: a practitioner perspective

• This study uses in-depth qualitative interviews with radio professionals in the United States to identify best practices for noncommercial radio fundraising. Most noncommercial stations use on-air pledge drives to solicit donations from listeners, and this is a major source of revenue for these stations. The interview data are analyzed using the constant comparative method. Findings indicate that radio professionals use a variety of fundraising appeals to reach listeners with different motivations for donating. These fundraising appeals have three dimensions: altruism/self-interest, rational/emotional, and reinforcement/trigger. The data also indicate that noncommercial stations try to foster relationships with their listeners and donors. These relationships are managed through direct communication and through mass communication, which produces parasocial interaction.

Copyright © 2014 John Wiley & Sons, Ltd.     

A practical guide to corporate fundraising on a regional basis

Regional corporate fundraising has the potential to become a growth area as major companies move out of big cities and wish to become involved in supporting charities in the regions where they relocate. This paper gives ‘hands-on’ guidance to charities on the way to approach corporations; the importance of thorough research is stressed, as is the necessity for clear, professional proposals that point out the benefits to both charities and corporations. Much practical advice is given and many specific opportunities for fundraising are listed. Copyright © 1999 Henry Stewart Publications     

Selection in a field experiment with voluntary participation

The external validity of experiments in economics can be ensured only if participants reflect the relevant market population. We study data from a promotional campaign of NH‐Hoteles to study sample selection problems in a gift exchange field experiment. The promotion allowed guests to pay any non‐negative amount for a stay in one of 36 hotels in Belgium and the Netherlands. We distinguish between involuntary participants, who booked prior to the announcement of the promotional campaign, and voluntary participants, who booked after the campaign was announced. The involuntary participants pay, on average, substantially more. This different behavior cannot be explained by differences in satisfaction or observed compositional differences between both groups. During the promotion we varied the posted price of a room that was communicated to the guests. Only the involuntary participants respond to this exogenous variation in the posted price. We argue that the promotional campaign mainly attracted individuals with relatively few prosocial reputational concerns, because they benefit most from a name‐your‐own‐price scheme. Copyright © 2010 John Wiley & Sons, Ltd.     

Infringing use as a path to legal consumption: Evidence from a field experiment

Digitization has transformed how users find and use copyrighted goods, but many existing legal options remain difficult to access, possibly leading to infringement. In a field experiment, we contact firms that are caught infringing on expensive digital images. E-mails to all firms include a link to the licensing page of the infringed image; for treated firms, we add links to a significantly cheaper licensing option. Making infringers aware of the cheaper option leads to a 14-fold increase in the ex-post licensing rate, albeit from an extremely low baseline for the control firms. Two additional experimental interventions, designed to reduce search costs for (i) price and (ii) product information, also have large positive effects. Our results suggest that ex-post monetization (e.g., licensing after use) may expand the market, and that rights holders can create value by minimizing search and transactions costs.     

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.     

Worker reciprocity and the returns to training: Evidence from a field experiment

Do reciprocal workers have higher returns to employer-sponsored training? Using a field experiment with random assignment to training combined with survey information on workers' reciprocal inclinations, the results show that reciprocal workers reciprocate employers' training investments by higher posttraining performance. This result, which is robust to controlling for observed personality traits and worker fixed effects, suggests that individuals reciprocate the firm's human capital investment with higher effort, in line with theoretical models on gift exchange in the workplace. This finding provides an alternative rationale to explain firm training investments even with the risk of poaching.     

Heterogeneous ambiguity attitudes: a field experiment among small-scale stock investors in China

We conducted quasi-field experiments in Chinese brokerage houses to investigate how investors react to ambiguity relative to quantifiable risks and the degree of heterogeneity in these reactions. Our experiment consists of three sections; a background survey; individual self-reports of emotional states; and a series of individual portfolio choice questions involving ambiguous assets and assets with a known probability of success. We calculate an index of ambiguity aversion that controls for risk aversion through a series of simple choices and demonstrate its outside validity. We find a significant degree of heterogeneity in ambiguity attitudes and discuss some demographic or emotional factors that might contribute to this heterogeneity. We also discuss the correlation between ambiguity attitudes and risk attitudes. By conducting these experiments in China, we were able to measure the degree of ambiguity aversion among a sample of experienced and accessible investors who face ambiguous decisions on a daily basis.     

The effect of monitoring unemployment insurance recipients on unemployment duration: Evidence from a field experiment

Programme administration is a relatively neglected issue in the analysis of disincentive effects of unemployment benefit systems. We investigate this issue with a field experiment in Hungary involving random assignment of benefit claimants to treatment and control groups. Treatment increases the monitoring of claims — claimants make more frequent visits to the employment office and face questioning about their search behaviour. Treatment has quite a large effect on durations on benefit of women aged 30 and over, while we find no effect for younger women or men.     

Selection of individuals to serve on major gift fundraising teams: a study of membership choice criteria

Major gift fundraising (MGF) is a crucial activity for large UK charities and is one that is normally undertaken by teams. This paper examines the criteria that the managements of large charities apply when selecting individuals to serve on MGF teams. It also explores possible connections between team composition and MGF success. A questionnaire exploring this matter was distributed to a sampling frame comprising 500 of the UK's largest fundraising charities, resulting in 151 replies. It emerged that MGF teams which contained people who had been chosen on the basis of their commitment to the MGF function, their communication and relationship nurturing abilities, and their wide‐ranging connections throughout an organisation were reported to perform better than teams that were not deliberately assembled in this way. The more background research was completed into an MGF prospect's circumstances and preferences and the more diverse an MGF team's composition, the higher the probability of success. However, team size did not exert significant effects on performance nor did (i) the personal status of any of a team's members or (contrary to expectations) (ii) the inclusion of individuals who knew a prospect personally. Teams with members who possessed extensive experience of MGF did not perform substantially better than others. Copyright © 2011 John Wiley & Sons, Ltd.     

Pictures of me: user views on their representation in homelessness fundraising appeals

There is a long‐standing ethical debate regarding the ‘right’ representation of recipients in charity marketing materials that are intended to accurately define and represent social problems whilst also prompting the maximum response in voluntary income. The study presented in this article makes a contribution to that debate by highlighting the views of charity beneficiaries regarding their representation in fundraising campaigns. Drawing on data from five focus groups conducted in cities across England, we explore the views of young homeless people regarding the images of homelessness that appeared in major charity campaigns aimed at raising money to fund homelessness services. Participants displayed a high level of reflexivity, demonstrating that they understood the issues involved with homelessness and the perceptions of people like themselves that exist in the public sphere and in the consciousness of potential donors. Although the participants held the view that maximising revenues through the use of simple, eye‐catching images is the prime goal of fundraising, they also expressed a desire for more nuanced campaigns that tell the dynamic stories of how people become homeless and the use of imagery that elicits empathy rather than merely arouses sympathy. Copyright © 2012 John Wiley & Sons, Ltd.     

Management,supervision, and healthcare: A field experiment

We used a randomized management consulting intervention with 80 public-sector healthcare facilities in Nigeria to study the role of information, training, and supervision on the adoption of improved organizational practices. Facilities that received detailed improvement plans and 9 months of implementation support—including regular visits to monitor progress and set intermediate goals related to the plans—showed large, significant short-term effects on the adoption of practices that were under the responsibility of facility staff. Facilities that received general improvement advice but no implementation support showed no change in practices. Implementation support appears crucial for improvements, especially in contexts without market incentives for the adoption of effective managerial practices.