How well do fundraisers communicate with their donors?

Fundraising charities invest substantial resources in producing and distributing an ever-growing range of publications. As part of a major research study into how donors view the results of these endeavours the authors set out to evaluate how the major charities respond to general enquiries from the public, and to see how charities plan the publications they produce.     

Whatever happened to the pub crawl? — a change in attitude to charitable fundraising

This paper argues that there needs to he greater clarity in the role of today's charities and calls for structured research and evaluation of modern fundraising techniques and strategies, particularly to help smaller charities. It also blames the many councils of voluntary organisations and umbrella associations supporting the smaller charities for failing to provide adequate information and training in fundraising.     

Using third‐party services to reduce the development cost and improve the effectiveness of charity websites

The growth of the internet has provided a new medium for charities to reach out to potential supporters. The development of a website requires time, money and expertise that may not be available to many charities. A novel approach is presented to allow these charities to maximise the effectiveness of their websites by using freely available features that have been developed by third parties. It is suggested that use of these services will allow charities to deliver extensive and advanced functionality quickly at reduced cost and with limited in‐house skills. A wide range of services is identified and these appear to allow charities to: increase the content of their sites and foster a sense of community to encourage repeat visits; raise funds by processing online donations or hosting charity auctions; extend their trading activities to the internet; manage and monitor the use of their websites; and improve a range of other activities such as recruitment and advocacy. Some of the services have an associated cost but seem to offer a cheaper and quicker route to implementation for most charities. Although the use of these pre‐built services may provide cost savings, several risks associated with the suggested approach are also considered. By relying on third parties to provide these services, charities have to surrender some degree of control and risk damaging their reputation if the selected services are inappropriate or unreliable. The need to attract visitors to the site initially is also not addressed by this approach. It is concluded that the use of third‐party services does offer an opportunity for charities to enhance the websites but that these services need to be chosen very carefully. There is a need for further research to evaluate the suggested approach and to identify the effectiveness of the various services. Copyright © 2003 Henry Stewart Publications     

Selling goods and services by charities: a clearer view of an emerging picture

The role of voluntary organisations in society and the way such organisations are able to gain finance to support their role, is a continuing source of interest. Charities appear to be becoming more commercial in their selling of goods and services to augment their traditional sources of income. Such trading activity raises sensitive issues of topical interest; notably the way in which charities' income is taxed and the perception of competition between charities and private traders. The research, commissioned by the National Council for Voluntary Organisations (NCVO), throws light on these issues by revealing the nature and extent of trading by charities using authoritative data and a statistically sound sample of charities engaged in trading. Because of legal and taxation constraints on charities, much trading is carried out by subsidiaries rather than by the charities themselves. This study is the first to examine specifically the use of subsidiary companies and to focus on competitive issues. Copyright © 1999 Henry Stewart Publications     

Do‐it‐yourself DRTV: a practical guide to making direct response television advertising work for charities

Direct response television advertising (DRTV) has been used by charities as a form of promotion for many years; in the case of the UK for over two decades. In that period many charities have tried the medium but only a handful have achieved consistent success. In the process, a layer of mystique has attached itself to DRTV and a number of outright myths have been perpetuated. DRTV should work for many more charities than currently use it. This is in contrast to other media which are in danger of being swamped by overuse by charities. Any charity raising or wishing to raise money from the general public should at least consider this medium. Copyright © 2004 Henry Stewart Publications     

City–Charity Partnerships and the Financial Crisis: Case study evidence

Abstract

This paper examines the experience of UK charities in the aftermath of the global financial crisis. The focus of this paper is on charities in the specific study setting of the city. The city is an important location in contemporary society. Resource dependency theory is used to analyse the attenuated position of charities in one city. This study reveals the fragility of city–charity partnerships because of the impact of the global financial crisis on public finances.     

Charity Ratings

How do charitable donors respond to the third‐party ratings that signal the quality of charities? I investigate this question using a novel data set from Charity Navigator, which provides quality ratings for 5,400 charities. Because Charity Navigator prominently displays a charity's star rating which is assigned based on its overall rating, one can identify the causal impact of a one star increase in ratings on charitable contributions with a regression discontinuity framework that exploits the threshold values of the overall ratings. I find that in general, the third‐party ratings have a minor and often insignificant impact on charitable contributions received by charities. However, for relatively small charities, a higher rating leads to an increase in charitable contributions received. In particular, for these charities, I find that a one star increase in ratings is associated with a 19.5% increase in the amount of charitable contributions received. This result is robust under alternative model specifications and highlights the role of the third‐party ratings in not‐for‐profit markets.     

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.     

Charity Technology Trust: a case study

Charity Technology Trust (CTT) is one of a new breed of philanthropic initiatives aimed at helping UK charities become more efficient by better use of technology. Its founder believes that charities are ideally placed to benefit from the reduced costs and shared benefits of jointly developed strategies and fundraising, communications and data management tools. CTT was formed to catalyse a move in this direction from the major UK fundraising charities and is supported by the personal philanthropic contributions of its trustees—a group of successful businessmen. The challenge for such a new organisation with a new idea is considerable, but after 18 months CTT is working with 27 of the top 100 UK charities on projects from online raffles through e‐mail communications to IT strategy. Copyright © 2003 Henry Stewart Publications     

The role of market research for charities: Identifying target groups and developing successful relationships

No one can find friends by sitting at home, and no relationship can develop without plenty of interaction between the people involved. However, charities with large numbers of donors and volunteers cannot be expected to have day-to-day contact with more than a handful of their key supporters. This paper illustrates how market research can be used by charities as the conduit between charities and their supporters — not only to show how the relationship between the two sides can be developed to best effect, but also to identify the most appropriate target groups to find new support.     

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     

Pathways through trusteeship: Responding to the trustee recruitment crisis

Getting on Board 2017 suggests that the recruitment of trustees to the Board of Trustees (henceforth volunteer trustees) by charities in the United Kingdom is in a state of crisis. This report and a range of other stakeholders offer advice and guidance about recruitment, but attention to what motivates individuals to become trustees is lacking. Drawing upon the Pathways Through Participation framework , we argue that an important part of addressing the crisis in trustee recruitment is to consider the motivations of volunteer trustees in tandem with their resources and triggers for volunteering. We draw upon a study of 14 volunteer trustees of learning disability charities to explore how a critical understanding of volunteer trusteeship as a pathway through participation provides a full and rounded picture of trustee recruitment. Building on other research on volunteer recruitment and markets, we argue that recruitment can be improved when charities better understand what motivates their volunteer trustees. We recommend that charities consider trusteeship as a pathway through participation as part of their recruitment practices.     

Charity registration and reporting: a cross-jurisdictional and theoretical analysis of regulatory impact

Governments increasingly regulate charities to restrict the number of organizations claiming taxation exemptions, reduce charities’ ability to abuse state support, and detect and deter fraud. Public interest theory arguments suggest that regulation could increase philanthropy through enhancing public trust and confidence in charities. Nevertheless, public choice theory argues that regulators seek to maximize political returns, ‘manage’ charity-government relationships, and reduce potential regulatory capture.

We analyse charity regulatory regimes using these two regulatory theories and the relative costs and benefits of different regulatory regimes. Heeding these should reduce regulatory inefficiency and balance accountability and transparency demands against benefits charities receive from regulation.     

Unofficial Development Assistance: A Model of Development Charities’ Donation Income

The empirical literature on the determinants of charities’ donation income, distinguishing the charitable cause, is small. We consider the case of development charities specifically. Using a panel covering a quarter of a century, we observe a strong fundraising effect and a unitary household income elasticity. We find evidence that the conventionally identified ‘price’ effect may simply be the product of omitted variable bias. Our results further suggest that public spending on development crowds in private donations for development. We find a positive spillover effect of fundraising, suggesting the efforts of one development charity may increase contributions to other development charities.     

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.     

Charity law reform: implementing the Strategy Unit proposals

This paper discusses the recommendations arising from the Strategy Unit review of charities and the wider voluntary sector in England and Wales and the government's response to these. The proposed reforms will involve an updating of charity law; changes to the regulatory framework governing the sector; and a greater emphasis on improving the accountability, transparency and performance of charities and voluntary organisations. In the main these proposals have been welcomed by the sector. In particular there is a clear recognition of the need to modernise the legal position of charities to reflect changes in society and changing public perceptions of what is, or should be, charitable. Copyright © 2004 Henry Stewart Publications     

Graphical disclosures by charities: clarification or distortion? The case of the Netherlands

• The literature on graph use and graphical distortions in nonprofit organisations is reviewed, highlighting measurement issues. A sample of 50 disclosed annual reports of Dutch charities containing graphs is analysed, leading to the observation of significant graphical distortions. These distortions seem to be related to organisational efficiency, though not in the way one might expect: better performing charities ‘embellish’ the data in their graphical representations, whereas the opposite seems to be the case for the less performing charities.

Copyright © 2009 John Wiley & Sons, Ltd.     

Strategic Positioning And Organizational Adaptation In Social Enterprise Subsidiaries Of Voluntary Organizations

Abstract

This article examines a new organizational form, the community interest company (CIC), as a means for voluntary and charitable organizations to embark on formalized social enterprise activities in the UK. A combination of social, economic, legal and strategic positioning factors has influenced charities to set up CICs as social enterprise subsidiaries to complement their public service work. CICs with charitable origins have relatively weak strategic positions, which are distinct from those of their parent charities. This difference creates tensions in the relationship between the CICs and their parent charities, which have implications for the management of third sector social enterprises.     

Marketing charitable bequests to lawyers

There is scant literature about the role of the lawyer in influencing the likelihood of a charitable bequest being made in a will. Charities regularly advertise in legal journals and supply bequest materials to lawyers, but the effectiveness of these strategies for influencing lawyers appears not to have been measured in the literature or in practice. Our exploratory research indicates that specialist estate lawyers report that they pay little or no attention to traditional marketing of charitable bequests to them and that lawyers' specific information needs from charities about bequests are not being satisfied appropriately. Our study reveals that lawyers do seek information from charities in order to write a will's bequest clause, once a bequest has been considered by the client. Lawyers indicated frustration with obtaining this information from charities, and we recommend some actions for charities to rectify this situation. Recommendations for enhanced bequest solicitation are made together with suggestions for pathways for future bequest research involving lawyers. Copyright © 2011 John Wiley & Sons, Ltd.     

Charity E‐volution? An evaluation of the attitudes of UK charities towards website adoption and use

• The objective of the research was to assess attitudes in relation to website adoption and use, across a broad spectrum of UK charities. A survey methodology was adopted for the research, administered using a self‐completion questionnaire. The results reveal that although the majority of responding charities have websites, most appear to be using them to deliver information about the organisation and its mission, rather than acquiring new supporters, raising funds or allowing beneficiaries/clients to interact. However, overall, respondents were positive regarding the use of websites by charities, and most are optimistic about future improvements in their own online performance.

Copyright © 2006 John Wiley & Sons, Ltd.