The state-of-the-art and future research directions in bequest fundraising by nonprofit organizations: A systematic literature review

The topic of fundraising is garnering increased attention from nonprofit practitioners due to the worldwide growth of the nonprofit sector and the subsequent competition for private funds. Despite this surge, academic literature on fundraising and bequest fundraising, in particular, has remained mainly limited to narrow aspects of the discipline. Based on a systematic review of literature published over the past 25 years, we synthesize various research perspectives into a comprehensive framework of studies linking the different issues highlighted by the authors. The purpose of this article is to consolidate the state of academic research on bequest fundraising by not-for-profit organizations. The literature review underscores how research efforts have not paid much attention to bequest fundraising from the NPO's perspective, although as it has become an increasingly important source of income for charitable organizations. The majority of studies focus on the Donor's perspective, striving to understand what drives the desire to leave a charitable bequest. The findings of the SLR show a gap in the knowledge of NPOs' internal mechanisms concerning the particular topic of charitable bequests; from these insights, the future research directions are proposed.     

The final outcome of charitable bequest gift intentions: Findings and implications for legacy fundraising

Charitable bequest gifts are important to charities but evaluating legacy fundraising activities is problematic. These activities may not generate bequest income until many years later. Thus, many charities focus on generating reports of current plans or intentions for bequest gifts. Such approaches depend on the link between these reports and ultimate bequest transfers. However, this link is not well documented. This study presents the first multi-organisational results linking ultimate estate distributions with lifetime legacy giving plans or intentions reported to charities. Ten Australian charities provided data from those dying in 2014–2017. Among 700 decedents who had confirmed the presence of a planned bequest gift to the charity, 35% generated no estate gift. This lost gift rate varied from 17 to 60% across different organisations. The average loss rate was 24% when the charity had at least one communication with the decedent within 2 years of death, and 48% otherwise. Among 264 people reporting to the charity that they were “intending” or “considering” an estate gift but not confirming it, 89% left no gift at death. Among 507 people only requesting information about making a bequest gift, 95% left no gift at death. These results suggest the importance of moving donors to the point of planned gift confirmation and then maintaining relationships until the end of life. However, marketing remains challenging given that 58% of the 2,682 total bequest gifts received by these organisations came from decedents who were not donors during life.     

Targeting wealthy donors: the dichotomous relationship of housing wealth with current and bequest giving

Identifying the charitable potential of current and prospective donors is a key component of successful fund‐raising, particularly in the areas of major gifts and planned giving. Previous research has provided support for the positive impact of two core financial factors, total wealth, and homeownership. Using data from the USA and Australia, this paper examines how the interaction of these two variables can generate negative effects on charitable giving. In particular, as the share of total wealth held in homeownership rises, both the likelihood and level of charitable giving falls. This relationship is consistent across current giving, planned bequest giving, and actual bequest giving and in both cross‐sectional and longitudinal models. These findings suggest that prospect research models incorporating asset type, as well as total wealth, may better predict likely donor potential. Copyright © 2011 John Wiley & Sons, Ltd.     

The timing of final charitable bequest decisions

• Understanding the timing of final charitable bequest decisions permits nonprofits to co‐ordinate their marketing efforts to correspond with donor decision‐making. Using probate data from Australia and longitudinal survey data from the USA, this paper seeks to identify the timing of decisions that resulted in realized charitable bequests. We find evidence that charitable transfers result mostly from decisions that occur during the last 5 years of life and at the oldest ages. Charitable plans made earlier in life are often discarded.

Copyright © 2015 John Wiley & Sons, Ltd.     

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.     

What research tells us about planned giving

The transformation of fundraising from an ‘emerging profession’ to a ‘true profession’ is contingent on the development of ‘a formal body of knowledge based on theory and research’. To advance that goal, this paper reviews several research studies and makes recommendations for practice by fundraising professionals. The paper identifies indicators of philanthropic tendencies in very wealthy individuals and a research basis for donor cultivation activities. It also looks at giving by bequest, charitable remainder trust and charitable gift annuities and recommends the marketing segments and channels best suited to each as defined by research. Copyright © 2004 Henry Stewart Publications     

Determinants of charitable donation intentions: a structural equation model

• Currently charities have to depend more on individual donors and less on the government for funding. Hence, understanding the individual donor and what motivates them to contribute to charities is something, which has been of increasing interest to nonprofit marketers. In this article, a path model for the charitable donation process of a religious individual is developed and tested. The variables that are used in the model are religiosity, attitude towards helping others (AHO), attitude towards charitable organizations (ACO), attitude towards the advertisement (Attad) and behavioral intentions (BI). The results suggest that AHO by itself does not cause BI. Altruistic people need to be targeted with an appropriate advertisement message. Since religiosity is an important causal variable for AHO, segmenting and targeting individuals who are religious would be pertinent. Attempts to build favorable ACO would also be worthwhile.
• Religiosity
• Charitable donation intentions
• Charity advertisements.
• Path model for predicting intentions to donate.

Copyright © 2007 John Wiley & Sons, Ltd.     

Understanding students' responses to university‐led charity campaigns: a study of a Haitian earthquake relief campaign

The primary focus of this paper is to understand determinants of behavioral intentions of individuals towards a university‐led charitable campaign. We build a comprehensive model of determinants of behavioral intentions of students towards a university‐led charitable campaign at an individual level. This study identified perceived importance of the cause, social value, and recognition as determinants of behavioral intentions. The results indicated that to increase donations, charitable campaigns should stress the importance of the cause to potential donors and publicly recognize volunteers and donors. Implications and recommendations such as leveraging the university's internal channels of communication to reinforce the importance of the cause are discussed. Copyright © 2011 John Wiley & Sons, Ltd.     

Investigating online recognition for blood donor retention: an experiential donor value approach

• Recognising that charitable behaviour can be motivated by public recognition and emotional satisfaction, not-for-profit organisations have developed strategies that leverage self-interest over altruism by facilitating individuals to donate conspicuously. Initially developed as novel marketing programmes to increase donation income, such conspicuous tokens of recognition are being recognised as important value propositions to nurture donor relationships. Despite this, there is little empirical evidence that identifies when donations can be increased through conspicuous recognition. Furthermore, social media's growing popularity for self-expression, as well as the increasing use of technology in donor relationship management strategies, makes an examination of virtual conspicuous tokens of recognition in relation to what value donors seek particularly insightful. Therefore, this research examined the impact of experiential donor value and virtual conspicuous tokens of recognition on blood donor intentions. Using online survey data from 186 Australian blood donors, results show that in fact emotional value is a stronger predictor of intentions to donate blood than altruistic value, whereas social value is the strongest predictor of intentions if provided with recognition. Clear linkages between dimensions of donor value (altruistic, emotional and social) and conspicuous donation behaviour (CDB) were identified. The findings provide valuable insights into the use of conspicuous donation tokens of recognition on social media and contribute to our understanding into the under-researched areas of donor value and CDB.

Copyright © 2014 John Wiley & Sons, Ltd.     

Money donations intentions among Muslim donors: an extended theory of planned behavior model

• The investigation into determinants of money donation intentions while employing an extended theory of planned behavior model is limited to developed country contexts. However, given the challenges facing charitable organizations and scant theoretical evidence from developing world, such an examination can contribute pragmatically. The current study establishes the impact of subjective norms, perceived behavioral control, past behavior, and attitude on respondents' money donation intentions to charities in Pakistan. The respondents (N = 223), a non‐student population living in the city of Gujranwala, completed a survey. The collected data are analyzed by means of a multivariate analysis, which was comprised of regression and correlation. The results reveal a strong support to the extended theory of planned behavior model in establishing the relationship between identified independent and dependent variables in a developing country context of Pakistan. The study contributes to the establishment of a few strategies, which are useful for managers working in charitable organizations to attract and retain donors to support several causes.

Copyright © 2015 John Wiley & Sons, Ltd.     

From solicitation to search: a study of monitoring costs as a driver of donor giving behavior in online portal websites

This study focuses on market contexts, in particular online giving portals, where donors are able to search and select organizations to contribute to instead of responding to solicitations. To understand donor behavior in this context, we construct and test a two-stage donor search model. A relationship between the behavior of the donor and that of the charitable organization is sought along two dimensions: how organizational behavior involving the reduction of monitoring costs affects the amount that a donor gives and the likelihood that donors will make a subsequent contribution. Copyright © 2011 John Wiley & Sons, Ltd.     

Examining charitable donation process in South India: role of gender

With increasing financial clout, females are potentially poised as a greater source of charitable giving in the West. However, debate exists in the marketing literature about gender‐based differences in charitable donations. The purpose of this study is to research whether gender‐based segmentation is effective for charities in cultures in which high gender inequality exists. Hence, India, an emerging economy with high gender inequality, was chosen as the study setting. Following an extensive literature review, we identified gender, trust, attitude towards the ad, and feelings from the ad as key predictors of charitable donation intentions. A study model was developed and tested using regression analysis. It was found that the predictor variables have significant impact on intentions to donate. Hence, this study posits that gender could potentially be an effective segmentation variable for charities that are targeting potential donors in South India. Copyright © 2012 John Wiley & Sons, Ltd.     

The Development of Corporate Charitable Contributions in the UK: A Stakeholder Analysis

This paper investigates the determinants of corporate charitable donations within a comparative study of corporate behaviour in two time periods, 1989–90 and 1998–99. The analysis is based on a longitudinal data set that includes over 400 UK listed companies. The determinants of corporate charitable donations are explored within a stakeholder model and the relationship between corporate charitable donations and a set of firm and industry variables is estimated using OLS. Particular emphasis is placed on industry effects and the impact of social and environmental stakeholders. The results highlight a significant change in behaviour between 1989–90 and 1998–99 that may reflect a strategic response by corporate decision‐makers to external concerns over corporate social responsibility. In the early period corporate charitable donations were substantially determined by profits. However, this relationship has weakened during the 1990s as firms have become increasingly responsive to stakeholder influences. The results for the later period emphasize the increasing importance of corporate visibility, and the development of social and environmental influences on corporate charitable contributions.     

A novel approach to legacy donations with long-term benefits supported by numerical illustrations

Philanthropic donors face challenges in matching the causes to which they donate, the time horizon—and thus impact—of their donations, and the charitable vehicles they choose for making contributions. Wealthier donors may elect to create their own foundations and customize their charitable support. Less wealthy donors have limited choices: they may contribute to a nonprofit's current operations or to existing nonprofit endowments. We present a novel approach for making charitable donations, blending aspects of each of these strategies. Our approach has potential long-term financial benefits, allows donors to control their charitable donations in a convenient and easy-to-implement manner, can be established through an existing nonprofit organization, expands opportunities for more donors because it requires a smaller corpus contribution with lower management costs than creating a foundation, provides tax savings in the United States and other countries (e.g., the UK, Canada, and Australia) comparable to other planned giving vehicles, and may be implemented during one's lifetime using donor advised funds or as part of a legacy plan through the donor's estate documents, which is when the long-term benefits accrue.     

Charitable bequest importance among donors to different types of charities

This paper explores differences in the self‐rated importance of charitable estate giving depending upon the type of charitable cause a person donates to during life. One theoretical motivation for lifetime giving is to personally enjoy benefits from improving a shared collective good. However, this motivation is not possible for bequests. Bequest transfers and resulting improvements occur after personal enjoyment of benefits is no longer possible. This paper hypothesizes that among donors to high personal benefit causes (those typically creating shared goods benefitting donors), interest in a charitable bequest (which offers no opportunity for receiving such benefits) will be relatively less than among donors to low personal benefit causes. In order to explore this, each charity type is categorized as providing high, low, or mixed personal benefits from shared collective goods. This hypothesis receives mixed support. Donors to international relief organizations, a low personal benefit charity type, do place a higher importance on charitable bequests than do donors to shared‐goods type causes such as neighborhood associations, service clubs, sports leagues, or “other” charities, including those focused on local public safety and crime. However, donors to arts organizations—a classic example of donors creating a shared good—have a relatively high interest in charitable bequests. One important exception to the exclusion of postmortem personal benefits could come from religious belief. Accordingly, donors to religious causes do place a higher importance on charitable bequests.     

The role of task-related antecedents for the development of turnover intentions in temporary project teams

Abstract

High turnover can cause serious problems in organizations. Yet, previous research confirmed that HRM practices are useful to influence the development of turnover intentions. Existing studies have revealed a variety of factors that drive individuals to leave permanent organizations (POs) but almost no research has considered turnover in temporary organizations (TOs). Yet, TOs, such as project teams, have become increasingly prevalent and exhibit several characteristics that are distinct from POs. Hence, the antecedents of turnover intentions in TOs may also differ from those in POs. However, empirical evidence for this proposition is still lacking. In order to address this research gap, this study examines task-related antecedents of turnover intentions in temporary organizations (TITO) using a sample of 253 employees working in project teams. The results show that inter-role conflict is the most influential antecedent of TITO. Unlike suggested by extant literature, members of TOs seem to be willing to accept down-cuts in job autonomy and meaningfulness of their work, without developing turnover intentions while working for TOs. Furthermore, the results confirmed a direct relationship between TITO and turnover intentions from the permanent organization (TIPO). Members of TOs that want to, but cannot leave their project team seem to develop TIPO.     

A solicitor's perspective on charitable gifts in wills

• In the climate of public spending cuts, charities are increasingly expected to fill the gap. Yet charities themselves face huge challenges. Not just increasing demand for their services but falling income and low investment returns. Encouraging philanthropy has never been more important, and that includes legacy giving. Following the announcement last year of the Government's major inheritance tax incentive to encourage us to give more to charity on our death, the time is right for a major report on current trends in charitable legacy giving. Late last year, Mishcon de Reya undertook the most detailed analysis ever by a firm of solicitors of its clients' wills. In a study of over 1000 wills, we did not just look at how many people leave a legacy to charity. We considered the value of the legacy, the type of legacy, the likelihood of the charity ever receiving it, whether clients prefer to give to multiple charities, and the most popular charitable sectors. This article will give a quick overview of our research followed by a more detailed look at the three types of legacy to charity: cash—‘for example, I leave £10,000 to charity’,—specific items—‘for example, I leave a painting to charity’—and residuary gifts—‘for example, I give half my estate to charity’. The article will then briefly touch on the charity sectors most favoured by our clients before giving a brief summary of Mishcon de Reya's key findings in conclusion.

Copyright © 2012 John Wiley & Sons, Ltd.     

Relational exchange in nonprofits: The role of identity saliency and relationship satisfaction

In practice and research pertaining to charitable giving, the emphasis has been on identifying the characteristics and motivations of donors, but few have asked why donors continue to support a particular nonprofit. This study examines the relationship between renewing donors and nonprofits and their impact on charitable giving levels using identity salience and relationship satisfaction as key mediators of nonprofit relational exchange. In a survey of 719 repeat donors in the United States, to a broad range of nonprofit organizations, identity saliency and relationship satisfaction are introduced as mediating constructs, and the results confirm that both constructs partially guide donor motivations and charitable giving. Theoretically, this suggests that the more a donor identifies with a nonprofit organization and the more satisfied the donor is in the relationship with the organization, the higher their intention to donate. This finding supports previous research in segmentation strategies and service‐dominant logic in the nonprofit sector. Managerial implications of this research include indication of a paradigmatic shift from relational exchange to transformational exchange (or value cocreation) in nonprofit organizations' approach to donor cultivation.     

Exploring the role of perceived external prestige in managers' turnover intentions

Employee turnover is an important topic in the human resource management literature. Several researchers have sought to analyse its multiple determinants and to model the turnover process. The purpose of this paper is to study the impact of employees' perception of the external image of the company they work for on their intentions to leave. It is based on a questionnaire survey of 801 French managers that attempted to incorporate the notion of perceived external prestige (PEP) within the literature's classical model of turnover. The results show that the impact of PEP on intentions to leave is partially mediated by the two determinants of turnover in the model: organizational commitment and job satisfaction. Yet there still remains a direct effect of PEP on intentions to quit. Our research also attempted to confirm the existence of a possible moderator effect, but was unable to find such an effect.     

Mothers' psychological contracts: Does supervisor breach explain intention to leave the organization?

Recent evidence suggests mothers with infants are leaving the workforce (Cohany & Sok, 2007; Johnson, 2007), but research has not yet clarified why mothers make such a decision. The current research proposes that mothers form psychological contracts including content related to family that supervisors do not fulfill, resulting in intention to leave the organization. In a study of first‐time mothers, participants reported experiencing contract breach. Findings also suggested supervisors may have an opportunity to control the outcomes of breach and retain mothers by effectively managing perceptions of fair treatment (i.e., interactional justice). This is the first empirical research to indicate that mothers' intentions to leave depend on fulfillment of their psychological contracts related to family and fair treatment from their supervisor.