Enhancing fundraising success with custom data modelling

The majority of nonprofit organisations rely heavily on contributions to fund their mission‐critical activities. Because building relationships with donors is critical to the success of nonprofits, organisations must be able to transform their data on prospective donors into an action plan that will optimise the yield of their fundraising efforts. This paper offers a methodology for targeting individuals most likely to make a charitable contribution, by building custom response models using the rich donor data maintained by many nonprofit organisations as well as overlaid demographic information. The methodology is able to utilise efficiently a large volume of variables while being flexible enough to use large categorical variables, such as postal code, and capture non‐linear relationships between the independent variables and the likelihood to give. Copyright © 2001 Henry Stewart Publications     

Benchmarking the fundraising performance of UK charities

• The cost of fundraising and its effectiveness are issues of increasing importance in the UK nonprofit sector. Measuring fundraising effectiveness properly is critical to organisations on two fronts. From a financial stewardship perspective, charities need to ensure that their fundraising is as efficient as possible. From a public relations perspective they need to be able to demonstrate this to donors and our other stakeholders. There are many problems to be overcome in objectively judging a charity's performance relative to other nonprofit organisations. There are significant methodological barriers to be overcome to produce valid and meaningful comparisons. The well established Fundratios study shows that it is feasible to construct a methodology for robust benchmarking underpinned by good quality data which charities can use as a tool to inform the management of their fundraising activities.

Copyright © 2009 John Wiley & Sons, Ltd.     

A cross-cultural analysis of the demographics of membership in nonprofit organisations

This paper is concerned with the identification of demographic characteristics of members of nonprofit organisations across a large number of countries. It is found that there are significant differences in the demographic characteristics within countries for different types of non-profit organisations and across countries for the same nonprofit type organisation. Understanding these patterns can lead to increased efficiencies in communication by nonprofit organisations within and across national boundaries.     

Electronic mail as a fundraising tool

The World Wide Web has attracted considerable attention and investment in the for-profit and nonprofit worlds, but electronic mail (e-mail) alone can be one of the most effective online fundraising and marketing tools. Its use in fundraising appeals is considered and its relationship to traditional direct mail fundraising discussed. Other more innovative methods of incorporating e-mail into a fundraising mix are explored, including the basic applications of an e-mail signature to the more advanced uses of automated e-mail response systems. This paper is based on research carried out by the author at City University during 1994 and 1995 as part of an MSc course in Information Science and published as ‘Electronic sources of fundraising information for UK nonprofit fundraisers’.     

Software for nonprofit fundraising and marketing

This paper discusses whether or not nonprofit donation processing software can be developed for nonprofit marketing. It shows, from previous research, that money-raising rather than money-processing is a crucial justification for a fundraising computer system. However, it is in money-processing rather than money-raising that most fundraising systems have their origins. It identifies key differences in software purpose; transaction processing is reactive, money-focused, and task-oriented, whereas nonprofit marketing is proactive, donor-focused and process-oriented. The paper looks at IT evolution over the last 50 years and recognises three phases: automate, informate and transformate. The paper suggests that fundraising systems are somewhere between automate and informate. Transformational IT has yet to come for the nonprofit world. The paper shows where the strains occur when a transaction processing system is pressed into use for marketing, and the most common causes of problems are identified. Finally it sets an agenda for nonprofit marketing systems which focus on holistic donor management, and suggests a number of data and functional needs that set marketing systems apart from transaction processing systems.     

The economics of nonprofit organisations' governance

We determine theoretically when we can expect agency problems amenable to shirking agents to arise in nonprofit organisations and derive the conditions for governance measures to remedy these. Agents' private benefits of shirking need to be considered combined with the effect of their efforts on the probabilities of being successful in fundraising and production. If this effect is large, agency problems can more easily be avoided. Sufficient conditions for governance measures to reduce agency problems are derived. The empirical literature fits a number of the results derived and shows important gaps, especially w.r.t. the role of success probabilities.     

Applying a stakeholder management approach to ethics in charitable fundraising

While nonprofit accountability literature recognizes many stakeholders, even theoretically grounded approaches to fundraising ethics tend to focus more narrowly on donors, organizations, and their missions. This paper draws on business ethics scholarship by proposing a stakeholder management approach to ethics in fundraising. This approach foregrounds intentional examination of the multiple stakeholders in the fundraising process: the organization; its donors; current beneficiaries; the broader population within the issue; the fundraisers themselves; and the community. Following stakeholder theory, ethical fundraising activities must align with the charitable mission of the organization, and take into account the legitimate interests of those groups and individuals who can affect, or be affected by, its activities. The process of intentionally identifying, prioritizing, mapping claims, engaging with, and monitoring stakeholders offers fundraisers, nonprofit executives, and members of governing and advisory boards a pragmatic means of aligning fundraising efforts with the mission, values, and long-term strategy of their organizations.     

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.     

Strategic management and fundraising: A planning model for resource development in the nonprofit organisation

Many nonprofits can benefit greatly from integrating their strategic, marketing and fundraising planning into an environmentally comprehensive process. Even during this critical period for them, many nonprofits typically have failed to implement this type of integrated planning because their corporate culture often nurtures: an inner process focus, leadership pathologies, professional balkanisation, reluctance to accept advancement as a global organisational activity, an unwillingness to accept the realities of a moving market and a lack of political will to undertake social advocacy on behalf of their clients. In order to succeed in the future, nonprofit organisations will need to approach strategic planning through an interdisciplinary methodology that will be shaped by multiple market audits focusing on: mission and institutional capabilities, image and competitive analysis, philanthropic feasibility and flexible integration of revenue/resource development. Nonprofits that adopt this interdisciplinary process will be rewarded by enhanced fundraising returns, once re-founded on a culture that has remained mission-relevant while becoming market-driven. The nonprofit that bases its planning on more effective use of intelligence gathering and flexible focusing of its human and financial capital will be more capable of acting upon a fluid environment and realising the institution's optimal future.     

The ‘new’ donor: creation or evolution?

The unusual mass of financial capital produced in the late 20th century, complemented by the creative thinking of innovative philanthropists, engendered new ideas for philanthropy. An entrepreneurial focus, greater emphasis on partnerships among business, government and nonprofit sectors, and new wealth as well as new social innovation dramatically affected the philanthropic scene — and therefore nonprofit organisations and fundraising. A publication extolling venture philanthropy stated, ‘Philanthropy may be on the cusp of the greatest revolution in the nonprofit sector since Congress granted tax‐exempt status in 1954’.[Morino Institute (2001) ‘2001 Venture Philanthropy: The Changing Landscape’, prepared for the Morino Institute and Venture Philanthropy Partners, Inc., by Community Wealth Ventures, Inc.] This paper defines the terminology that identifies the new donor, describes new roles and practices in philanthropy, and looks at how the new donor fits into a comprehensive fundraising programme. New approaches to philanthropy versus traditional philanthropy are considered, including whether or not these approaches are actually new or represent an evolution in giving. Futureprojectionsarediscussedaswellascaveats regarding the maintenance of balance between what is tried and true and what is a trend. Copyright © 2002 Henry Stewart Publications     

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.     

ePhilanthropy: using the Internet to build support

For nonprofit organisations the Internet represents an unprecedented and highly cost‐effective opportunity to build and enhance relationships with supporters, volunteers, clients and the community they serve. As ePhilanthropy has emerged, organisations have discovered that consistent and deliberate e‐mail communication that drives traffic to the organisation's well‐organised and informative website has become the key to success. Charities should approach the Internet as a communication and stewardship tool first and a fundraising tool second. Success will come not from an emphasis on the technology, but on cultivating and enhancing relationships. Copyright © 2002 Henry Stewart Publications     

The impact of face-to-face street fundraising on organizational reputation

Although many stakeholders perceive face-to-face street fundraising as unpleasant, nonprofit managers encourage it as a way to attract donors. To understand the long-term effects of this fundraising method, we used a mixed-methods experimental design to investigate how face-to-face street fundraising affects organizational reputation and stakeholder support intentions in comparison with letter fundraising. The findings reveal that face-to-face street fundraising has a significant negative influence on the stakeholders' perceptions of an organization. Further, qualitative data show that the negative perception originates primarily from perceived pressure, distrust, and obtrusion, which are triggered by face-to-face street fundraising. Our study thus reveals long-term reputational consequences that nonprofit organizations should consider before deciding on fundraising methods.     

Ethics of Care as a theory of normative fundraising ethics

Little normative ethical theory exists in the nonprofit marketing literature. Previous attempts at an ethical framework for the field of nonprofit fundraising fell short of fully considering the full spectrum of relationships involved in fundraising practice. We introduce the concept of Ethics of Care, an ethical theory that centers around relationships and interpersonal well-being, as a philosophical foundation for professional ethics in the field of fundraising. We believe this theory provides a suitable framework in which to ground questions of professional ethics for nonprofit fundraising professionals. The adoption of Ethics of Care as a normative ethical theory for fundraising will allow applied ethical questions in the field to be explored in a way that more fully addresses all parties involved in fundraising and affected by its outcomes. Our paper illustrates the process of applying the foundational principles in specific ethical quandaries found within fundraising and aims to address the omission of the beneficiary in the majority of previous ethical frameworks and promote a new set of standards that fully incorporates and balances all stakeholders' needs.     

Nonprofit community increasing nervousness about Year 2000

Nonprofit organisations should consider six aspects of the Year 2000 (Y2K) problem: internal computer system failure, government computer system failure, global economy weakness, logic controller failure, financial institution disruption and fundraising disruptions. Seven suggestions are shared: buy only Y2K-compliant hardware and software, do not permit staff to install software from home, educate the board and staff and document planning efforts, designate someone to be responsible for Y2K efforts, make an inventory of at-risk hardware and software and query manufacturers, ensure that outsourced services are Y2K compliant and back up critical data. Seven useful Y2K World Wide Web resources for nonprofit organisations are reviewed. Copyright © 1999 Henry Stewart Publications     

Comparing Nonprofit Charter and Traditional Public School Board Member Perceptions of the Public,Conflict, and Financial Responsibility: Is there a difference and does it matter?

In this paper, survey data collected from nonprofit charter school board and elected public school board members in Minnesota is used to test three hypotheses relating to theories of New Public Management, democratic governance, and small group dynamics. We find that nonprofit charter school board members perceive lower levels of conflict, place less priority on the general public, and perceive a higher degree of governance responsibly in the area of financial management, than elected board members. We conclude that the increased use of nonprofit charter schools has potentially substantial implications on accountability and effectiveness in the delivery of public education.     

Attracting members to avocational nonprofit organisations

For avocational nonprofit organisations, ‘marketing’ means attracting and retaining members. Avocational organisations experiencing membership difficulties may offer a variety of explanations, the most frequent one being a purported shrinkage of leisure time for the average American. The 68 largest avocational nonprofit organisations in the USA were studied in an attempt to identify common factors associated with membership success, and to confirm or disprove commonly offered explanations for membership distress. Very few general attributes could be found; in most cases, an organisation's success or distress seem to stem from factors that are specific to that organisation. Copyright © 1999 Henry Stewart Publications     

Understanding social influence in Facebook fundraising: Relationship strength,immediacy of needs,and number of donations

Crowdfunding through social media has presented challenges and opportunities for nonprofit and voluntary sector organizations. To better understand how organizations can harness the power of social media in fundraising, the current research examined the effects of different types of Facebook fundraising posts on donor engagement. Based on Social Impact Theory, three factors of social influence were investigated, including relationship strength with the fundraiser creator, immediacy or urgency of the fundraising need, and number of donations. An online experiment was conducted using samples recruited through Amazon Mechanical Turk. A repeated measures test was performed to explore the effects of three social influence factors on perceived source credibility, feeling of social presence, attitude toward the post, and intention to click, share, and donate. Strongest main effects were found for immediacy of needs. Facebook fundraising posts for an urgent need generated much more positive responses than posts for a nonurgent need. Interaction effects were also found among three variables in perceived credibility and intention to click. Personal relevance and perceived risk moderated the effects of number of donations on intention to donate. Implications for nonprofit and voluntary sector organizations were discussed.     

The market orientation concept in the private nonprofit organisation domain

The market orientation concept has become one of the central issues of scientific and entrepreneurial study in the marketing discipline. In fact, the theoretical and empirical contributions to this field of research have proliferated in various contexts throughout the last decade. One domain, however, in which market orientation investigation has been relatively limited until recently, is in private nonprofit organisations. Thus, the main purpose of this paper is to delimit the market orientation concept in the private nonprofit organisation context. The alternative basic orientations adopted by these organisations are first assessed in order to specify next the meaning of market orientation from a dual perspective: as an organisational philosophy and culture, and as an organisational behaviour. Copyright © 2002 Henry Stewart Publications     

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.