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.     

Online donation behavior in nonprofit organizations: The role of congruent processing styles

With the advent of technology, donors are increasingly donating via online channels. This shift deems it necessary for nonprofit organizations to better understand the online donor behavior. As such, the purpose of this paper is twofold. First, we investigate if nonprofit organizations are perceived differently in terms of their cognitive and affective natures. Then, we examine how different consumer processing styles, i.e. cognitive and affective, interact with consumer perceptions of nonprofit cognitive/affective orientations in influencing their donation intentions. Our results indicate that consumers with a high need for cognition are more willing to donate to predominantly cognitive nonprofit organizations, while those with high need for emotion are more willing to donate to predominantly affective nonprofit organizations. Based on these results, we suggest that nonprofit organizations can garner more donations if they request funds from donors whose processing styles are congruent with the organization. Additional recommendations for future research are provided.     

Improving the financial sustainability of nonprofit organizations through tourism-related activities

One of the greatest problems facing nonprofit organizations (NPOs) is the lack of funding, which directly jeopardises their work. NPOs working in tourist destinations have the opportunity of satisfying this need through tourism, by linking the objectives of their own activities to the objectives of tourist destinations. This article aims to establish whether NPOs working in tourism have capitalised on tourism as a means for increasing their own income. In other words, do NPOs that more frequently conduct tourism-related activities have a higher level of financial sustainability, reflected in a higher share of income from self-funding activities than from donations and grants? To this end, primary research was conducted using a questionnaire on a sample of 205 NPOs whose activities impact tourism and which operate in one of the four most developed tourist destinations in Croatia with regard to tourist traffic in the past 10 years (Poreč, Rovinj, Dubrovnik and Medulin). Research results indicate that an increase in the frequency of conducting activities directly impacting tourism is paralleled by an increase in the share of income generated by active self-funding (income from selling products and providing services) and other types of self-funding (income from memberships fees and assets), with a decrease in the share of income from donations and grants. This study contributes to the existing knowledge by connecting NPOs with the tourism system and by identifying and defining opportunities for NPO self-funding through tourism as a means of improving NPO financial sustainability.     

An exploratory study of stewardship for Chinese nonprofit organizations

This study examined how Chinese nonprofits practice stewardship and how stewardship principles influence nonprofit–donor relationships and donor retention. Fifteen qualitative in‐depth interviews were conducted with experienced fundraisers in China. Results showed that Kelly's stewardship principles were applicable in China; Chinese fundraisers practiced stewardship principles of reciprocity, responsibility, reporting, and relationship nurturing to maintain relationships with major gift and annual donors. Besides, practitioners also utilized a variety of communication channels, ranging from face‐to‐face, telephones, emails, to digital shared media such as WeChat and Weibo, in communicating with individual and general public donors. Finally, interviewees also provided evidence on the positive role of quality nonprofit–donor relationships in retaining donors. This study illustrated the current status of nonprofit fundraising practice in China and expanded the explanatory power of the stewardship theory. The findings are implicative for Chinese nonprofits professionals on how to develop their unique stewardship practice in managing relationships with donors.     

Strategy and HRM in nonprofit organizations: evidence from Canada

Unlike other sectors, human resources (HR) of nonprofit organizations cannot be replaced with investment in physical capital. Moreover, the importance of HR has been further heightened by changes in the operating environment of the sector. Using the Miles and Snow (1978 Miles, R.E. and Snow, C.C. 1978. Organizational Strategy, Structure, and Process, San Francisco, CA: McGraw-Hill.  [Google Scholar]) strategic typology, this paper explores strategic HRM in public service nonprofits by examining the importance attached to HRM based on their strategic types. The results of a survey of 79 nonprofits and 7 case studies suggest that strategic HRM was not evident in nonprofit organizations. Defenders, analysers, and prospectors were not different from reactors in the importance they attach to recruitment, compensation and labour relations. However, training was found to be more important among defender than prospector nonprofits. The lack of alignment between HRM and strategy highlights the need for nonprofits to find a way to address their HR capacity challenges and enhance effectiveness of strategy.     

Transparency of nonprofit organizations: An integrative framework and research agenda

Over the past 20 years, as the study of transparency has evolved into a burgeoning multidisciplinary field, nonprofit scholars have developed an impressive body of research on the antecedents and outcomes of the transparency of nonprofit organizations (NPOs). From both theoretical and practical purposes, it is necessary to develop an overall picture of such antecedents and outcomes, to allow scholars and NPOs to understand why, when, and how transparency should be implemented. Current studies provide a fragmented view, focused on specific elements of NPO transparency; with a systematic literature review of 76 articles, this article offers both an integrative framework of the antecedents and outcomes of NPO transparency and an agenda for research, based on a critical analysis of the integrative framework. Four relevant research orientations emerge: (1) direction of NPO transparency, (2) distinguishing actual from perceived transparency, (3) the dark side of NPO transparency, and (4) NPO transparency contingency factors. Research along these four orientations could add nuance to existing knowledge of transparency and provide key insights with regard to why, when, and how transparency works.     

Rhetorical framing: examining the message structure of nonprofit organizations on Twitter

• All organizations must persuade stakeholders that they are worth supporting. Organizations need donors to give, volunteers to volunteer, consumers to purchase, and general support for public funding. Because Twitter messages are restricted to 140 characters or less, organizations' message structures must be clearer and may employ traditional rhetorical techniques such as ethos, pathos, and logos, to garner support and promote action. By using content analysis, the tweets of eight charitable organizations from diverse sectors were analyzed for rhetorical content, type of communication such as two-way symmetrical or two-way asymmetrical communication, and positive or negative message frame, for one calendar month. Results of this study found that 60% of tweets employed rhetorical strategy and the majority of tweets included a positive message frame. Moreover, each of the three broad functional areas defined by Lovejoy and Saxton (2012) used ethos, pathos, and logos to differing degrees. Based on results, proposed expansions of the functional areas are also discussed. Copyright © 2014 John Wiley & Sons, Ltd.

     

CSR and service quality in nonprofit organizations: the case of a performing arts association

• The relationship between corporate social responsibility (CSR) and marketing performance has been widely investigated recently, but mostly in relation to for-profit companies. This paper highlights the importance of this topic for nonprofit organizations (NPOs). Focusing on an Italian NPO operating in the performing arts and entertainment industry, two empirical studies (a quantitative survey and a qualitative exploratory enquiry) prove the strategic relevance of CSR in nonprofit contexts. The results demonstrate that CSR can be considered an additional dimension of the customer perception of service quality in NPOs and reveal that customer perception of the social responsibility of the studied NPO is strongly linked to its institutional mission and to the modalities through which it pursues that mission.

Copyright © 2014 John Wiley & Sons, Ltd.     

Understanding public awareness of nonprofit organizations: exploring the awareness–confidence relationship

• Public confidence has often been viewed as a critical indicator of legitimacy within the nonprofit sector. Indeed, confidence is believed to be among one of the sector's most important commodities. Surveys, however, have shown that the public does not always have much confidence in the performance of nonprofit organizations. Although this lack of confidence is certainly concerning, few studies have assessed whether the public actually has any awareness of what nonprofit organizations are, and no studies have examined the personal characteristics associated with more (or less) nonprofit awareness. Thus, by using individual‐level data from a survey of public attitudes toward nonprofits in San Diego County (n = 1002), the purpose of this study was to explore how individual characteristics relate to nonprofit awareness and to examine the extent to which awareness of the sector influences confidence in the performance of nonprofit organizations. The findings from the study indicate that nonprofit awareness varies by several individual‐level characteristics—with many of those likely to be the most dependent on nonprofit services being the least aware of the sector. The findings also indicate that awareness of the sector is the most significant predictor of confidence in the performance of nonprofits.

Copyright © 2014 John Wiley & Sons, Ltd.     

Market orientation and marketing in nonprofit organizations. Indications for fundraising from Victoria

The effectiveness of a market orientation has been established in other parts of the world. Using a modified replication study of 401 nonprofit organizations from Victoria, this research took some initial steps to assess fundraising and marketing activities. Studies in Australia have usually focused on only one part of the Third Sector. This study takes a different view and uses a criteria sampling method to survey all 11 sections named by the Australian Bureau of Statistics. The self‐reported data of fundraising activities showed that there were several choices available to all nonprofit organizations that can lead to an improvement in organizational performance. Results suggest that should nonprofit organizations have knowledge generating systems that evaluate their performance, this will improve outcomes for them. Even though organizational size is strongly linked to fundraising performance, there are key drivers that can aid even small organizations in their efforts. Copyright © 2010 John Wiley & Sons, Ltd.     

The extent of excessive or insufficient fundraising among US arts organizations and the effect of organizational efficiency on donations to US arts organizations

• We estimate, for each nonprofit organization (NPO) in a sample of 606 US arts NPOs, whether the NPO's level of fundraising is ‘excessive,’ ‘insufficient,’ or neither, relative to the level that maximizes net donations. We find that the effect of a 1% increase in fundraising on net donations varies widely across the arts NPOs in our sample—from an increase in net donations of 8.91% of gross donations to a decrease of 3.82% of gross donations. Of the 100 NPOs in our sample with the highest donations, the estimated effect of a 1% increase in fundraising on net donations varies more narrowly—from an increase in net donations of 0.27% of gross donations to a decrease of 0.32% of gross donations. Of these 100 NPOs, we estimate that only 3 engaged in ‘excessive’ fundraising, but 83 engaged in ‘insufficient’ fundraising, and 14 did not engage in ‘excessive’ or ‘insufficient’ fundraising.We also provide evidence that reported organizational efficiency does not affect donations to arts NPOs. This finding may be useful to managers and directors of US arts NPOs who believe that organizational efficiency does impact donations and who, therefore, incorporate the effect on efficiency in their decisions to allocate resources across fundraising, administration, and program objectives.

Copyright © 2007 John Wiley & Sons, Ltd.     

Efficiency,stability and the decision to give to nonprofit arts and cultural organizations in the United States

• Using data from the Cultural Data Project, this study extends the literature by examining the impact of financial disclosure information on donations to arts and culture‐related nonprofit organizations in the United States. Results for organization financial stability are for the most part counterintuitive: financially unstable arts and culture‐related nonprofits receive more donations. The current analysis supports prior research and finds evidence of a “crowding in” effect for fundraising expenses, suggesting that nonprofits that spend more on fundraising and marketing raise more funds than those that spend less. Additional analysis indicates efficiency matters to donors when it comes to fundraising efforts. As the “cost to raise a dollar” increases donations decrease. Nonprofit managers in arts and culture‐related organizations concerned about increasing donations should consider strategies that will increase the efficiency of their fundraising and marketing efforts. Copyright © 2015 John Wiley & Sons, Ltd.

     

Creativity,job performance and their correlates: a comparison between nonprofit and profit-driven organizations

• This study explores a research model concerning creativity, job performance, and their correlates in the nonprofit organization setting. The findings of this study suggest that a set of differences in the areas of creativity, job performance, and their correlates exists between the marketers in nonprofit organizations and the marketers in profit-driven organizations. These findings reveal the need for contingency theories in this area, with emphasis centered on environmental differences. It is hoped that this study will draw the attention of many researchers toward topics concerning organizational creativity in the nonprofit organization setting.

Copyright © 2005 John Wiley & Sons, Ltd.     

Evaluation in nonprofit organizations: A defense of perception as a managerial and scientific tool

Nonprofit organizations (NPOs) are subject to multiple pressures from their stakeholders. Stakeholders are at the same time the target of the organization's mission, the evaluators, the providers of resources and the demanders. This article is an essay that defends reciprocal perception as a managerial tool. The proposed intellectual path leads to the revalorization of stakeholder perception as a very useful practical and scientific tool for the management and study of NPOs. However, perception has limitations that the introduction of the concept of reciprocity can address.     

Acquisition of physician group practices by for-profit and not-for-profit organizations

This exploratory study examines the acquisition and formation of physician group practices by for-profit and not-for-profit organizations from a strategic management perspective. Data sources include the 1991 and 1995 AMA Census of Medical Groups, the 1991 and 1995 InterStudy Census of HMOs, and the 1991 and 1995 AHA Annual Surveys. Longitudinal and cross-sectional logistic regressions are used to conduct the hypothesis tests. The data suggest that economies of scope in physician practice is a leading attribute in the selection of acquisition targets. Whereas transitions to not-for-profit ownership were associated with both target attributes and local market characteristics influencing physicians to sell, for-profit acquisition of group practices was predicted solely by target attributes. The paper concludes by suggesting several potentially fruitful directions for future studies.     

Electronic mail,privacy, and the public sector: Guidelines for public employees and organizations

What privacy rights are public employees entitled to when using their electronic mail systems? Are they entitled to privacy rights in the messages they send or receive? The setting, public or private, is crucial to determine what privacy rights exist for the employee. Unfortunately, no public sector electronic mail privacy case has been considered by the courts. Nevertheless, E-mail privacy guidance does exist. This article investigates previous privacy considerations provided in other workplace situations—cases that involve technologies other than E-mail—in search for common rules established by the Supreme Court. With this foundation, the article then applies the same rules to an electronic mail environment and provides guidelines intended to assist public managers in the creation or reevaluation of their organization’s electronic mail privacy policy.     

Addressing social-business tensions in hybridized nonprofit organizations: The contribution of strategic human resource management

Nonprofit hybridization represents the adaptive response to a turbulent external and internal environment leading to tensions between contradictory goals (e.g. social and business goals). Although research has provided insights into the strategies for addressing the tensions stemming from hybridization, it has paid less attention to how strategic human resource management (SHRM) may play a role in managing these social-business tensions. Given the increasing complexity nonprofit organizations (NPOs) face, this hybrid context presents a valuable opportunity to examine the concept of SHRM “fit” in terms of different stakeholder demands, diverse and competing goals and resulting tensions. This article aims to conceptualize and contextualize SHRM fit in hybridized NPOs to gain a better understanding of how organizations can orientate their systems and practices to manage competing demands stemming from hybridization. Hereby, we use SHRM fit to illustrate the opportunities for and limitations on practice within a hybrid context. Bringing the nonprofit and hybrid literature together, we develop a typology of nonprofit hybridization that distinguishes NPOs according to their financial and social orientation and specify the tensions and management approaches that dominate these types. Drawing on the concept of SHRM fit, we advance a framework and propositions on how the management approaches in each of the types result in different configurations of vertical and horizontal fit that address social-business tensions. Hereby we extend current debates in the hybridization literature on tensions between opposing goals and research on SHRM approaches in NPOs and contribute to a theoretically-informed understanding of the implications of tension management approaches in variants of hybrid organizations.     

Exploring sources and outcomes of trust and commitment to nonprofit organizations: The case of Amnesty International Portugal

The interactions between customers and organizations have been regarded as a core aspect in cocreating and developing new products and practices. The current study explores these interactions in the context of citizens and nonprofit organizations. The study comprises two parts: (a) a qualitative approach using interviews and the analysis of social networks to better understand the organization's social media marketing practices and corresponding outcomes and (b) a quantitative approach to analyze antecedents and outcomes of trust and being committed to participate in a nonprofit organization such as Amnesty International. From the qualitative approach, the findings highlight that Amnesty International uses social media (Facebook) to share information, and citizens tend to consider sharing posts, but they do not express new ideas or interact with the organization. These findings contribute to structure the model analyzed in the second stage of the research. Regarding the qualitative approach, the results show that organizational credibility is the most significant driver of trust followed by communicative ability. Affectively commitment to participation and relationship perception act as outcomes of overall commitment.     

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.