Defining the Content of Sustainability Reports in Nonprofit Organizations: Do Stakeholders Really Matter?

The aim of the article is to investigate the role of stakeholder engagement and participation in nonprofit organizations’ sustainability reporting, according to the literature on third sector and stakeholder theory. To verify the levels of involvement, the authors conducted an empirical survey, using content analysis, on a sample of 54 sustainability reports of nonprofit organizations included in the Global Reporting Initiative database as of September 1, 2012. In order to strengthen the results obtained from the content analysis, the authors shared their findings with the organizations of the sample. The survey showed that there were some criticisms regarding stakeholder participation in the targeted research field. These are considered in the conclusions. Questions for the future included whether stakeholder engagement is moving from being simply a way to consult and influence stakeholders to being an effective instrument for involving them in nonprofit organizations’ reporting and decision-making processes, through mutual commitment.     

Social Entrepreneurship in Nonprofit Organizations: An Empirical Investigation of the Synergy Between Social and Business Objectives

Social entrepreneurship in nonprofit organizations has emerged as an increasingly important domain, both in academic research and in practice. This article attempts to further enhance our understanding of the management of nonprofit organizations by investigating the way they balance social and business objectives. Over 200 senior managers of nonprofit organizations participated in our structured telephone interview. The data revealed that many organizations worried about the potential for reduced or lost funding, especially during economic hard times. Issues of sustainability usually headed their list of concerns. Many of these organizations sought to establish revenue generating business streams to offset expected funding shortfalls. The data suggested that over 70% of the nonprofit organizations we interviewed resided in the social entrepreneurship zone. Our results also showed that maintaining a social objective and managing a viable business can be complementary and mutually beneficial activities.     

Nonprofit Organizations' Strategic Responses to Changes in Their Funding Environment:

This pilot study examines nonprofit organizations' attempts to implement strategies in response to changes in their funding environment for HIV/AIDS services. Both past and future strategic initiatives were examined. Many of the related new revenue, legitimation, and retrenchment strategies were found to be significantly different across some types of nonprofit organizations but not for others. Operational implications and future research directions are addressed.     

The theoretical foundations of nonprofit competition: a resource-advantage theory approach

Competition in the nonprofit sector has dramatically intensified in the past two decades because of (1) the increased number of nonprofit organizations (NPOs), (2) the decline and diffusion of governmental support, and (3) the entry of for-profit companies into markets that traditionally have been the domain of nonprofits. In an attempt to enhance the understanding of nonprofit competition, the authors apply resource-advantage (R-A) theory, a dynamic theory of competition adapted from the for-profit business literature, to commercial nonprofits and explain how commercial nonprofits can leverage their various resources to successfully compete and deliver social value. Contributing to the understanding of nonprofit competition and the challenge that NPOs face in balancing mission and money, this paper provides a foundation for a theory of nonprofit competition that can guide future research in the area and help NPO managers as they maneuver in today’s increasingly competitive environment.     

The Importance of Understanding Donor Preference and Relationship Cultivation Strategies

Relationship cultivation has been identified as a critical component of fundraising success. Cultivation strategies derived from interpersonal communication theory were identified and evaluated by the donors and fundraising team members from three nonprofit hospitals. Using co‐orientation methodology, statistical analysis reveals that donors and fundraisers agree that the six strategies are beneficial. However, their perceptions that they hold similar views as the other side were not accurate in terms of the magnitude of the ratings. These differences are discussed and suggestions are provided to bring both sides of the nonprofit organization‐donor relationship closer to agreement.     

Does Victim Responsibility Influence Nonprofit Volunteerism?

Volunteers provide billions of dollars of nonpaid labor to nonprofit organizations every year. The purpose of this study is to better understand why volunteers join nonprofit organizations. The central research question examines victim responsibility. That is, does the circumstance of the victim influence a volunteer's willingness to donate time? A survey was designed to investigate the research question. The survey contained nine questions related to age and circumstance of the victim and the likelihood of volunteering. One hundred and seventy-five surveys were completed. Analysis of variance (ANOVA) was used to analyze the data. The results indicate that volunteers are more likely to volunteer to help when the victims are not responsible for their circumstance.     

Aftermarketing with Best Customers-

In order to cultivate and serve the needs of their customers, for-profit businesses and organizations are using ''aftermarketing'' as a technique to reduce customer attrition. This article will examine this way as a technique for nonprofit organizations to serve the needs and wants of its donors. It will analyze a case study of a nonprofit organization which uses this technique as a tool for finding out what donors think. And it will discuss the importance of ''aftermarketing'' to nonprofit organizations.     

Examining the Influence of the Individual in Arts Sponsorship Decisions

Support from the corporate sector is an important revenue source for many nonprofit organizations. In this article, we consider individual-level influence within the decision-making processes of companies as they make decisions concerning nonprofit arts sponsorship. These decisions have often been linked to the influence of a single high-level executive, and the research contained here seeks to better understand the role of the individual in influencing these decisions. Through qualitative multiple-case research the authors find that a single individual, termed the advocate, is in fact influential. Furthermore, the advocate is determined not by their title or official ranking but by their possession of expert power, a combination of knowledge and the belief of others in that knowledge. In addition, how individuals influence these decisions relates to their application not of gut instinct, but of informed intuition. The article closes in suggesting new perspectives that will assist in better understanding this role.     

The impact of professionalization and partnerships on nonprofit productivity

ABSTRACT

This research evaluates the influence of professionalization and partnering with firms on nonprofit productivity. Professionalization is measured in terms of the ratio of paid employees to volunteers, and productivity is measured through the ratio of total assets to number of beneficiaries, and the ratio of total revenues to number of paid employees and volunteers. Empirical analysis combines a survey to a representative sample of Spanish nonprofits, with information available from public sources. Results confirm the existence of a ‘U-shaped’ relationship between professionalization and nonprofits’ capability to reach more beneficiaries with lower assets; a positive effect of professionalization on revenue generation capability; and a positive effect of partnerships with businesses on the nonprofit’s asset-per-beneficiary ratio. Discussion sheds light on the on-going debate about the implications of professionalization and partnering with firms for the capacity of nonprofit organizations to attract resources and to extend their reach in a more efficient way.     

A Theoretical Examination of Giving and Volunteering Utilizing Resource Exchange Theory

Marketing literature has devoted a great deal of research to companies on how to market and promote themselves to consumers but comparatively little to nonprofits on how to promote donations. A likely reason for the dearth of research can be partly attributed to a lack of distinction between various types of helping behaviors. It's difficult to make assumptions about the exchange process when so many diverse helping behaviors are considered. This investigation has been an attempt to differentiate donating to nonprofit organizations from other forms of helping behavior. A taxonomy of time and money donations was developed under the theoretical framework of Resource Exchange Theory. The resulting taxonomy classifies the nature of the exchange between donors and nonprofits on dimensions of particularism and concreteness. The taxonomy also accounts for appropriate rewards for the different types of donation (money, time or both) as well personal involvement of the donor.     

A Content Analysis of Compatible Fit among Message Elements in Philanthropy Ads

This research examined philanthropy ad messages in terms of four key elements: philanthropy goal, beneficiary, expected fundraising impact, and how the suggested donation is appraised. A content analysis was carried out to systematically study ad messages from nonprofit organizations on the Philanthropy 400 list. Specifically, the frequency of appearance of each type of message elements was analyzed in terms of four theoretical concepts: regulatory focus (promotion vs. prevention goal), egoism/altruism (self vs. others as beneficiary), temporal orientation (present vs. future fundraising impact), and efficacy appraisal (self- vs. response-efficacy in how a donation is appraised). Since past research further suggests that persuasion may be enhanced when message elements are well matched in terms of “compatible fits,” this study further analyzed how the four message elements were combined in usage. The findings of this research show that while most nonprofit organizations actively utilized all four types of elements in their messages, the current practice did not follow the guidelines as would be suggested by compatible fits literature. In this respect, more research is needed to understand the discrepancy and provide better guidelines for future communication strategies in the nonprofit sector.     

Market Orientation of Riding Schools: A Comparison of For Profit and Nonprofit Organizations Using Structural Equation Modeling

For profit and nonprofit service providers compete in different areas of economy. Market orientation is a widely acknowledged concept that influences the performance of both for-profit companies and nonprofit organizations. Nevertheless, the different underlying attitudes and motivations of voluntary or professional managers may influence the market orientation of an organization. An empirical study was conducted for investigating the influence of different attitudes toward market orientation. Groups of non- and for-profit managers are compared using the example of German riding schools. Overall, 244 volunteer and professional managers answered the survey. A structural path model was evaluated using the software SmartPLS 3. Results show that attitudes and motivations exert influence differently in the non- and the for-profit contexts. The economic situation was found to have an influence solely on the satisfaction reported by professional managers but not on the satisfaction reported by volunteers. Implications for future research on nonprofit market orientation can be drawn from the findings.     

Catch Them If You Can: The Effect of Reminder Direct Mailings on the Return Rate of First-Time Donors

Despite the relevance of interactive marketing strategies, most nonprofit organizations rely on a marketing mix with a focus on direct marketing. Previous research shows that, by optimizing the mailing frequency, organizations are able to distinguish their mailing from other mailings that donors receive. However, some organizations, such as blood services, struggle to convert the frequency recommendations into their marketing practice. As donation events occur irregularly and blood donors are only able to donate a certain number of times, mailing strategies have to result in blood donations. This study examines a strategy in which a reminder direct mailing follows the regular invitation a few days before a particular donation event. A field experiment was conducted with 396 donors; 203 received the double mailing. Surprisingly, the results from hierarchical binary logistic regressions do not reveal any differences between the experimental groups. A single direct mailing approach is recommended, leading to considerable cost savings.     

Trust,Satisfaction and Loyalty in Customer Relationship Management

SUMMARY

In an attempt to increase customer loyalty amid increasingly competitive business environments, organizations are looking to customer relationship management (CRM) to help provide a solution. In spite of CRM failure rates cited as being as high as 70%, organizations continue to invest hundreds of thousands of dollars on CRM implementations. Attempts of past research to resolve why failure rates are so high have tended to focus on technological factors such as database integration or factors internal to the organization such as system adoption or organizational culture. While these areas are important, reactions of customers may also play a role. This paper uses justice theory to investigate the potential impact that customer involvement in a CRM implementation may have on customer loyalty. Propositions are provided to guide future research.     

Diversity Management: A New Organizational Paradigm

Currently, an increasing number of organizations are attempting to enhance inclusiveness of under represented individuals through proactive efforts to manage their diversity. In this article, we define diversity management against the backdrop of its predecessor, affirmative action. Next, selected examples of organizations that have experienced specific positive bottom line results from diversity management strategies are discussed. The present paper also provides a conceptual model to examine antecedents and consequences of effective diversity management. Additional research areas identified from the model and literature review result in a number of research propositions intended to enhance the exploration and understanding of diversity management.     

Market Orientation and Nonprofit Organizations

This paper discusses the concept of market orientation within the context of nonprofit organizations. Three elements of market orientation-market intelligence, intelligence dissemination, and responsiveness-are examined for their association with performance in nonprofit organizations. A conceptual framework is developed which identifies select senior management characteristics, organizational characteristics, and external factors as key determinants of market orientation and subsequent performance of nonprofit organizations. In all, fourteen propositions are advanced for future research. This conceptual work posits that nonprofit decision makers can create a market orientation by focusing on specific organizational and senior management characteristics, and adapting to certain external factors. The ultimate objective is to achieve and sustain organizational performance.     

Involvement, satisfaction, and brand loyalty in a small business services setting

Considerable resources are expended annually on building business brands, yet the literature is virtually silent on brand loyalty in a business setting. This study examines the relationship between attitudinal loyalty and behavioral loyalty in a business services context, and attempts to identify two key antecedents of loyalty in this context. In particular, little is known about small businesses as customers, despite their significant contribution to the economies of developed nations. A longitudinal design is implemented, and data are captured on both attitudinal loyalty and subsequent loyalty behaviors (i.e., actual purchase behavior). The findings demonstrate the value of conceptualizing and measuring both attitudinal and behavioral components of brand loyalty. Specifically, the results indicate that attitudinal loyalty mediates the effects of the antecedents studied (category involvement and purchase satisfaction) on behavioral loyalty. Implications for marketing theory and practitioners are discussed, and possible directions for future research are sketched.     

Fundraising and the Elderly: A Content Analysis

Direct marketing, as an avenue for fundraising, provides nonprofit organizations with the ability to fulfill their missions and donors the opportunity to support a worthy cause. There are concerns, however, when sophisticated marketing practices target potentially at-risk consumers. Demographic studies clearly show that the percentage of elderly Americans, aged 65 and over, is rising with a corollary increase in the incidence of Alzheimer’s disease and dementia. These facts suggest this may be a group whose defining characteristics make them especially vulnerable. This exploratory study identifies and qualifies persuasive tactics used by several linked nonprofit organizations targeting one elderly Alzheimer’s victim over a 14-month period. The carefully designed direct mail solicitations utilize appeals that engender low elaboration likelihood and peripheral route processing. In addition, there is some evidence that even those appeals that might encourage high elaboration likelihood become heuristic cues for individuals with cognitive decrease. Taken together, the incorporation of multiple tactics within each solicitation, an approach referred to here as shotgunning, may have significant implications for future research and practice in communication, ethics, and public policy.     

Dissecting Word-of-Mouth's Effectiveness and How to Use It as a Proconsumer Tool

Companies are increasingly relying on alternative promotional activities, such as word-of-mouth communication (WOM), to reach their target markets. From a consumer protection perspective this may be troubling, as consumers may not always be aware of what is commercially motivated WOM and what is not. Based on a synthesis of the literature, this article develops the first practitioner-friendly model, which explains WOM's effectiveness as an information source for consumers and why it is a powerful tool for nonprofit organizations and government agencies. Then nine recommendations are developed to help nonprofit organizations and government agencies use WOM more effectively as a proconsumer tool. This is the first article to conceptualize proconsumer WOM rather than naturally occurring WOM or commercial WOM and to specifically focus on WOM to protect and educate consumers. The study paves the way to an untapped research area; that of proconsumer WOM by nonprofit organizations and government agencies.     

How personal nostalgia influences giving to charity

Personal nostalgia provides an emotionally engaging means for bonding a donor to a nonprofit organization. Yet, little is known about the relationship between personal nostalgia and charitable giving; this research seeks to fill this gap. A review of the extant literature is integrated with the findings from thirteen focus groups (Study 1) to develop a conceptual model. This model is tested in Studies 2 (using 457 older public television donors) and 3 (with a broader sample of 502 donors) using structural equations modeling. The findings indicate that discontinuity, recovery from grief, and loneliness, along with previous life experiences influence the level of personal nostalgia felt by a donor and associated with a charitable organization. This personal nostalgia provides emotional and familial utility to the donor. The research establishes that the effect of personal nostalgia on the donor's commitment is mediated by the emotional and familial utility that the nostalgia generates.