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.     

Brand orientation in charity organisations: qualitative research into key charity sectors

The study explores, through qualitative research, levels of brand orientation in large, medium and small‐sized charity organisations where brand orientation refers to the extent to which the organisation regards itself as a brand. The results indicate that charity managers are largely endorsing the conversion from charity organisation to charity brand. Brand status was seen to offer a shorthand communication of what the charity organisation did, its cause, and what it represented, its values. Significantly, it was also seen to fulfil organisational objectives such as raising awareness, building trust, fundraising and parliamentary lobbying, with a more focused and more consistent communication of what the organisation stood for. Strategically, however, charity organisations were not making the best use of their brands. It was suggested, for instance, that more sophisticated targeting of key donor segments with research‐based, tailored messages, might help reverse the trend of declining donor numbers. Overall, however, the study provides much evidence of brand orientation in the charity sector with most charity managers clearly wedded to the concept of putting the brand at the heart of the organisation. The charities that enjoyed a full commitment to the branding process from all their stakeholders were best placed to reap the benefits of charity brand status. Copyright © 2000 Henry Stewart Publications.     

Philanthropy,social capital or strategic alliance? The involvement of senior UK business executives with the voluntary sector and implications for corporate fundraising

Although corporate fundraising is popular there has been very little discussion in the voluntary sector literature of its context. Using questionnaire data from senior executives representing one‐third of the FTSE350 companies, and in‐depth interviews with a number of top level business men, this paper reports the first UK survey of the personal involvement of senior executives with charities, voluntary and community organisations,[Walker, C. and Pharoah, C. (2000) ‘Making time for charity: A survey of top business leaders' involvement with voluntary organisations’, Charities Aid Foundation, Kent.] and pinpoints messages about corporate involvement which may help fundraisers develop corporate fundraising strategies. The data give the first indications of how many of the UK's top business executives give time to charity, how much time they give and what they do. It also addresses what there is to gain for and from the charity, the senior executive and their company. The results present a picture of widespread and enthusiastic involvement of senior executives with the voluntary sector; a picture of both a deep personal commitment and of a strong sense of corporate benefit. The survey also raises several important issues and implications for corporate fundraising: should charities be doing more to attract top executives into an active relationship with them? How can they do this? What are the pros and cons of an alliance between corporate figureheads and charitable organisations; how might this relationship be viewed by the public; and how might it best be managed? This paper draws on the results of the survey to illustrate and discuss these issues. Copyright © 2002 Henry Stewart Publications     

Charity brands: A qualitative study of current practice

A number of fundraising managers and directors of UK charities were interviewed with the objective of understanding to what extent branding was used in the sector, what development possibilities exist for commercial techniques in charities, and what the constraints may be on such practices. It was found that many charities already use day-to-day brand techniques, (without describing them as ‘branding’), but brand development work was scarce. Charities have a number of objectives competing with fundraising when considering their brand content. They must also satisfy the need to respect issues about how the cause itself is communicated, and possible needs to re-educate the donor community or the public. One commercial practice in particular could be developed further in charity branding: this is the idea of using the personality of the charity itself as something with which donors could associate positively.     

Brochure fundraising

A fundraising brochure is regarded by many charities as a major source of income. This is associated usually with the charity's major fundraising event in its annual calendar. What many charities do not do is plan their brochure campaign to eliminate wasted effort and costs while maximising revenue received. This paper examines brochure fundraising techniques, drawing on personal and anecdotal experiences of fundraisers working in the nonprofit and voluntary sector.     

The diversification of charities: from religion‐oriented to for‐profit‐oriented fundraising

• Charities are increasingly relying on more complex and diversified fundraising structures to raise funds and attract benefactors. In adopting a historic perspective, this research identified five emergent fundraising structures, namely religion‐oriented, business‐oriented, marketing‐oriented, consumer‐oriented, and for‐profit‐oriented. The analysis critically evaluates the role that institutions and resources have played in each funding structure and draws conclusions concerning the management of charitable fundraising in a world where charitable fundraising, consumerism, and social media networking are increasingly entwined with the for‐profit motive.

Copyright © 2012 John Wiley & Sons, Ltd.     

Face-to-face donor cancellation rates (attrition): establishing a benchmark

• Face-to-face fundraising, both on the street and on the doorstep, has taken place in the UK for well over a decade. Its success can be said to be dependent on the balance between acquisition costs and income generated for the charity. Whilst the former is easy to measure, the latter has proven much harder to predict. This paper reports the results of a survey of the payment behaviour of over 377 000 face-to-face recruited regular giving donors, to 30 charities. Whilst charity brand awareness was found not to have a significant impact on levels of attrition, the region in which campaigns were run, together with the level of the ask and the cause of the charity, were all found to have a significant effect on attrition. As a result of improvements in both attrition and average gift from 2004 to 2006, charities have reported increased income from their street and door face-to-face campaigns.

Copyright © 2009 John Wiley & Sons, Ltd.     

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.     

“You can try to press different emotional buttons”: The conflicts and strategies of eliciting emotions for fundraisers

In a competitive climate in which charities must increasingly rely on fundraising with the public, emotions such as hope, guilt, and fear are powerful tools that can be used strategically to secure donations or participation. This paper explores data from interviews with 23 fundraisers and voluntary sector workers, managers, and officials, to argue that decisions around how, why, and when to invest in the elicitation of emotion in fundraising are often difficult and conflicted, with some identifying a battle between ethics and effectiveness. We identify 3 key levels of conflict that must be negotiated: at the level of the charity sector, where the emotional ethics particularly of larger charities have been met with some resistance from the public and press; at the level of the organisation itself, where the ethics of representation are often a subject of conflict between fundraising and other departments such as policy; and, finally, at the experiential level of individual fundraisers themselves, who report being routinely internally conflicted around the rights and wrongs of using emotion in their work. A strategic approach to eliciting emotion emerges in the data as a useful way to address some of these areas of conflict, with fundraisers making careful “balancing” decisions about how and with whom to mobilise certain emotions at specific times.     

How great thy brand: the impact of church branding on perceived benefits

• There are mixed opinions in the literature in regards of the appropriateness, relevance and significance of church branding in the context of church participation. This pilot study applied the ‘perceived brand orientation’ (PBO) construct in church context and examines its impact on perceived benefits among regular church goers of one Pentecostal denomination and non‐regular church goers. The results indicate that PBO is significantly related to perceived spiritual, social and purpose‐in‐life benefits in both sample groups. A multigroup analysis also found that PBO has a stronger effect on perceived benefits among non‐regular church goers. This study highlights the importance of being brand‐oriented to attract members' participation. Relevant implications for church leaders and managers of nonprofit organizations are also identified.

Copyright © 2013 John Wiley & Sons, Ltd.     

Corporate funding: A necessary evil?

Earthwatch has a highly successful track record of fundraising from the corporate sector, and developing corporate donors into long-term partners. This paper examines how this has happened in an environment that favours publicity-driven programmes run by large charities, and questions whether the long-term health of the voluntary sector will be better served by such partnerships rather than by high-value transactions.     

Obtaining legacies ‘face-to-face’

This paper is a general overview on how to obtain legacies. It must be remembered that the element of legacy fundraising which involves face-to-face techniques is the culmination of a properly organised and researched campaign, and cannot in any circumstances be done without a great deal of other essential preparatory work. Legacies account for nearly a half of all voluntary income in the UK, yet even now very few charities have developed a really effective all round legacy campaign integrated into their overall fundraising strategy. This paper is an attempt to give some insight into this potentially important income stream and is designed to give every fundraiser some helpful ideas, whether working for a large established national charity or a very small, local, recently formed voluntary group.     

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.     

Outstanding fundraising practice: how do nonprofits substantively increase their income?

• In this paper, we examine the characteristics of charities that have generated substantive increases in their fundraising income. We interviewed 25 fundraising directors and team members, from organizations experiencing rapid growth, adopting a “decoding the discipline” approach to identify how each organization had overcome key barriers to its success. We identify that fundraising leaders in these exceptional nonprofits focus particularly on matters connected to their team, organizational structures that support that team, and the development of an organization‐wide learning culture. We also find that these teams were successful because of the “systems” way in which they understood and coped with the complexities of decision making. They were exceptional in isolating the right problems and exceptional too in the processes they adopted to solve them.

Copyright © 2016 John Wiley & Sons, Ltd.     

What are ‘unpopular causes’ and how can they achieve fundraising success?

• Recent efforts to grow and strengthen the culture of philanthropy in the UK have largely focused on two dimensions: the total amount of money donated and the effectiveness of philanthropic spending. This paper explores a third dimension: the destination and distribution of donations. A defining characteristic of charitable giving is that it is voluntary rather than coerced, and the resulting respect for donor autonomy makes people wary of promoting one cause above another or implying that any beneficiary group is more or less ‘worthy’ of support. However, the absence of much comment on, or significant research into, the destination of donations does not alter the fact that some groups succeed in attracting significant philanthropic funds whilst others struggle to secure many—or any—donations. This paper explores the concept of ‘unpopularity’ in the charity sector, especially in relation to its impact on fundraising. We unpack what this loaded phrase means, identify good practice by those seeking support and present case studies of charities that have overcome perceived unpopularity to achieve success in raising voluntary income. We suggest that by investing organisational resources and effort in fundraising, by framing the cause to maximise the arousal of sympathy and minimise concerns about beneficiary culpability and by avoiding the unintended negative consequences of self‐labelling as ‘unpopular’ no charity need assume it is their destiny to languish at the bottom of the fundraising league tables.

Copyright © 2016 John Wiley & Sons, Ltd.     

Market segmentation - are UK charities making the most of the potential?

This paper discusses the findings of research carried out into the application of market segmentation in the charity sector. Four hundred and ten of the top performing charities (as ranked by income from voluntary donations) were surveyed to determine what techniques of segmentation they apply to their database. They were also asked to indicate how this information is used to inform and determine appropriate fundraising strategies. The findings show that with the exception of a few large organisations, the concept of market segmentation is as yet not utilised to its full potential in the development of successful fundraising strategy.     

Donor commitment: An investigation of fundraising strategies in churches and mainstream charities

One of the central questions in relationship fundraising is how to convert someone who makes a small yearly donation into someone who is a major donor covenanting a substantial part of his/her income. Drawing on research among 200 major UK fundraising charities, this paper explores how far the issue, of donor commitment is used in mainstream fundraising strategies, and finds that only a minority of charities place emphasis on this. This finding is compared with an analysis of models of giving in churches. It is argued that while churches may lack sophisticated approaches to fundraising, they may have important experiences in the area of committed giving which are relevant to fundraising strategies in other organisations.     

Determinants of fundraising efficiency of nonprofit organizations: evidence from US public charitable organizations

Using a translog stochastic production frontier and maximum likelihood estimation method, we estimate fundraising efficiency and examine the determinants of fundraising efficiency in public charitable organizations in the United States. Our study shows that organizational size has a positive impact on fundraising efficiency and government grants have a negative impact on fundraising efficiency. We also show that charities that allocate more resources on fundraising related labor, as compared with fundraising‐related materials and equipments, are more efficient in fundraising. These findings provide important managerial implications for public charities. Copyright © 2010 John Wiley & Sons, Ltd.     

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.     

Reinventing the rattling tin: How UK charities use Facebook in fundraising

Using a multicase study approach, this paper explores how the three biggest UK cancer charities by donations use Facebook in their fundraising campaigns, in order to facilitate understanding of the dynamics of philanthropic asking in a social networking site‐mediated environment. The analysis reveals that Facebook is primarily used to strengthen relationships with supporters, mainly via humanising the brand, fostering obligations, and encouraging social interaction. The mobilization of these relationships in fundraising is facilitated by persuasive strategies, including public recognition, authority, and the fostering of a sense of efficacy among fans, and the most common outcome of this mobilization is public endorsement of charities' fundraising campaigns via sharing. At a time when harsh public spending cuts have left gaps in charity funding that need to be filled by philanthropy, this study aims to make a practical contribution to knowledge by examining what works and how in Facebook fundraising.