Using data in legacy fundraising: a practical approach

• Legacies provide a major source of income to charities, and their importance is only likely to increase with the passing on of the baby-boomer generation. Legacy fundraising is a long-term process, based on developing relationships with donors over time. Data have a key role to play in the development of these relationships, allowing legacy fundraisers to measure and track their donors, and to contribute to the development of effective fundraising strategies. This paper discusses the effective collection and use of data in legacy fundraising, from consolidating data, to analysing the results and building legacy targeting models. The authors discuss how these principles have been applied in UK-based charity, Help the Aged, in conjunction with their Data Agency, Tangible Data (formerly Talking Numbers) and to give practical advice on how they may be implemented in other organisations.

Copyright © 2009 John Wiley & Sons, Ltd.     

First‐year donation behavior and risk of supporter lapse

• In this research, we explore supporter lapse behavior after making first‐year donations to a nonprofit organization. We argue that two observable variables — the monetary amount of first gift at sign‐up and the number of gifts given in the first year of the support relationship — can be used to approximate the level of commitment to supporting the organization and to predict likelihood of lapse in subsequent years. The reasoning is that the two variables are indications of the psychological resources as well as the financial resources expended in reaching donation decisions. The research hypotheses were tested using fundraising data extracted from the databases of two leading US‐based nonprofit organizations. Results indicate that both variables had significant effects. Interestingly, the number of gifts given in the first year of the support relationship had a much bigger effect than the dollar amount of the gift at sign‐up: In one organization, supporters who donated more than one gift in the first year were 39% less likely to lapse in subsequent years compared with their one‐gift counterparts, while a tenfold increase in the dollar amount of the first gift at sign‐up (e.g., from $10 to $100) predicted only 4% decrease in the lapse likelihood in subsequent years. Insights from this research may help to build better practices of supporter base management in “low‐touch” fundraising programs for attracting, building relationships with, and sending appeals to supporters.

Copyright © 2016 John Wiley & Sons, Ltd.     

Excessive,optimal, and insufficient fundraising among the Nonprofit Times 100

• Using a six-factor model of donations, we estimate the effect on net donations; i.e., donations less fundraising expenditures, of a one percent marginal increase in fundraising expenditures, for each sample nonprofit organization (NPO) from the Nonprofit Times 100 from 2000 to 2002. No prior study of U.S. NPOs estimates the effect of fundraising expense on net donations. We then use these estimates and what we argue is the correct benchmark, the ratio of fundraising expense to donations, to provide evidence, for each NPO, on whether the NPO's level of fundraising is ‘excessive,’ ‘optimal,’ or ‘insufficient,’ relative to the level that maximizes net donations. All prior studies using log-log models use what we suggest is an incorrect benchmark for evaluating NPO fundraising behavior.
• The estimated effect of a 1% increase in fundraising on net donations varies widely across NPOs in our sample—from an increase in net donations of 0.18% of gross donations to a decrease of 0.66% of gross donations. Of the 76 Nonprofit Times 100 NPOs with usable data in 2002, we estimate that 24 engaged in ‘excessive’ fundraising, 18 engaged in ‘insufficient’ fundraising, and 34 did not engage in ‘excessive’ or ‘insufficient’ fundraising; i.e., we could not reject the null hypothesis of ‘optimal’ levels of fundraising.

Copyright © 2006 John Wiley & Sons, Ltd.     

Exploring the inclusion of beneficiary voices in international development fundraising campaign creation

Charitable fundraising appeals for international development created for potential donors in the Global North are often, if not always, designed without the inclusion of voices and insights from the intended beneficiaries in the Global South. The implications of these appeals, void of beneficiary input, may serve to proliferate poverty porn and racial stereotypes, promote paternalistic and colonial thinking, and strengthen white savior syndrome. This exploratory paper, through a set of interviews and a focus group with fundraising professionals at international development organizations, examines the need for a beneficiary-centered Code of Ethics. A framework, based on the four major findings, is proposed that begins with beneficiary input and considerations offer charities an inclusive method for the design of future fundraising appeals and a way to fulfill their responsibility in how the beneficiary is depicted and the societal understanding of their situation.     

The ecology of internal workplace giving at Indiana University: a case study of faculty and staff campus campaign communications and fundraising

• This collective case study examines university-specific philanthropic cultures, campus fundraising campaigns, and their impact on faculty and staff giving to the university. Drawing on both qualitative and quantitative data, the study documents fundraising strategies through interviews and materials analysis and assesses their results through quantitative data on characteristics of donors and their philanthropic gifts. Examination of fundraising methods reveals differences between demand and supply-side communication strategies with faculty and staff members as internal stakeholders and donors. Concentrating on the campuses of Indiana University, a large, highly diverse public institution in the American Midwest, this study includes analysis of the outcomes of the fundraising process across institutions of different sizes, demographics, and philanthropic cultures. The findings underscore the importance of exploring the characteristics that influence employee donation behaviors as context for the creation and enactment of fundraising campaigns and highlight the need for future research in the area of workplace giving.

Copyright © 2014 John Wiley & Sons, Ltd.     

An investigation of the giving behavior of loyal,lapsed, and non‐givers to a religious organization

• This paper provides a comparative study of the giving behavior of current donors (CDs), lapsed donors (LDs), and non‐donors (NDs) in a Catholic diocese in New England. Focus groups were conducted and surveys were administered to Catholics to compare the attitudes and behaviors of lapsed and active donors as well as those who had not given to a recent diocesan annual campaign. The results show significant differences between the groups. Active donors indicate a much greater level of satisfaction with the church, are more aware of its programs, and feel they are more recognized for their gifts than do lapsed or NDs. These findings suggest that relationship fundraising, and creating trust, are critical to forging and maintaining valued donor relationships. The program implemented by the diocese as a result of the study is described.
• Marketing for religious organizations
• Lapsed donors
• Nonprofit marketing
• Marketing for churches

Copyright © 2009 John Wiley & Sons, Ltd.     

Initial evidence on whether use of professional fundraising services increases fundraising effectiveness

• We provide initial evidence on whether use of professional fundraising services by US nonprofit organizations (NPOs) increases the effectiveness of NPOs' fundraising efforts. To a well-tested model of organization-level donations, we add an interaction term that captures the impact that professional fundraising fees an NPO incurs has on the effectiveness of an NPOs' spending on fundraising in raising donations. We find that professional fundraising fees has a significant positive impact on the effectiveness of fundraising efforts in raising donations for NPOs in the full, education, and health samples, but no impact for NPOs in the arts and human services samples. For NPOs in the full sample and NPOs in the education sample, one quarter of the effect of fundraising on donations stems from the positive impact of professional fundraising services on the effectiveness of fundraising in raising donations. For NPOs in the health sample, one half of the effect of fundraising on donations stems from the positive impact of professional fundraising services on the effectiveness of fundraising in raising donations. These results suggest that professional fundraising services significantly enhance the effectiveness of fundraising for these types of NPOs. While the results of this study seem to confirm the decisions of managers of education and health NPOs to utilize professional fundraising services, the results also suggest that managers of arts and human services NPOs may want to reconsider using professional fundraising services, at least the types of services they currently purchase and the way they currently utilize such services.

Copyright © 2009 John Wiley & Sons, Ltd.     

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.     

Celebrity altruism: the good,the bad and the ugly in relationships with fundraising charities

• Enlisting or retaining the support of celebrity volunteers is a crucial element in the fundraising and communications strategies for many third sector organisations. But whilst there is a plethora of literature on volunteer motivations, there has been little exploration of the relationships between celebrity volunteers and the charities that they support. Furthermore, the limited theory that exists appears to be based on the experiences of fundraisers and other media specialists with little primary research on attitudes of celebrities themselves. This paper therefore considers celebrity/charity relationships on the basis of existing volunteer motivation theory and attitudinal data from a sample of 208 celebrity volunteers associated with a major fundraising charity in the UK. The findings indicate that the motivation of celebrity volunteers may be much closer to those of other charity volunteers than might be expected from other literature on celebrities. In addition, the study found that amongst other factors, celebrity volunteers typically prefer their engagements to be simplistic and expedient in nature, but that where possible, the engagement activity should be fun and rewarding. It also reveals that individual motives for supporting charities are varied in nature and range from purely altruistic tendencies at one end of the continuum to egoistic motives at the other. In addition, the study indicates that factors such as security and trust in the endorsed organisation are a key motivating factor for many.

Copyright © 2014 John Wiley & Sons, Ltd.     

Investigating differences between female and male athletic donors: a comparative study

• The purpose of the study was to identify differences between male and female donors of athletic programmes in order to improve fundraising effectiveness. Simple random techniques were used to gather data for the study.
• The total sample size was 387 from which 115 were female and 272 were male donors of the athletic programmes of a large eastern state university.
• The classification with discriminant analysis results showed that motives (priority seating and professional contacts), annual contribution, personal and household income, attendance of sport events and years of sport experience significantly discriminated between female and male athletic donors.
• The athletic fundraising practical implications are explored.

Copyright © 2006 John Wiley & Sons, Ltd.     

Just keep it simple: a field experiment on fundraising letters

• This paper studies how the use of a colour picture in fundraising letters affect response rates and the amount donated in a fundraising campaign. Envelopes, with a full colour picture were tested against envelopes, without a picture in a controlled field experiment at a national religious charity in the Netherlands. Letters (89 937) were sent out to planned as well as incidental donors in four experimental groups. Results show that packages with more graphics yield lower donations, because both response rates are lower and the amount donated per letter is lower. We interpret this finding from donor aversion against high fundraising costs.

Copyright © 2007 John Wiley & Sons, Ltd.     

Identifying and addressing fundraising's overarching ethical questions through ethical theory

Purpose

This paper seeks to build on MacQuilllin and Sargeant's (2019) framework for normative fundraising ethics by considering how fundraising professionals might use these theories to support their fundraising practice. In the paper we will seek to identify the higher-level ethical questions that underpin the majority of ethical decisions fundraisers will need to make: decisions around the acceptance and solicitation of donations and we will then seek to address each of these questions through the lens of MacQuilllin and Sargeant's (2019) normative ethical theories.

Approach and methodology

We will abstract from common ethical dilemmas the higher-level or overarching questions that can encompass them. We will then consider each question through the lens of the normative theories developed by MacQuillin and Sargeant (2019), drawing on available evidence to support our arguments.

Findings

Two core questions were identified: 1. Where are the lines in who we approach for/receive resources from for our organisation ? 2. Where are the lines in how we approach people for resources for our organisation?

Originality

To our knowledge, this will be the first academic paper that a) identifies the overarching ethical questions that affect fundraising practice, and b) applies the various normative theories of fundraising ethics directly to them. In practical terms, it may also be particularly useful to fundraising practitioners who want to explore the theories of ethics in relation to the dilemmas they encounter in practice.     

Using the phone to reduce donor attrition and drive loyalty

• Donor attrition is a major issue for fundraisers. With 40% of new monthly givers lapsing within a year of sign up, new techniques are urgently needed to slow the rate at which donors stop giving. Drawing on the commercial world's long‐established loyalty programmes, telephone fundraising agency, Pell & Bales, designed a programme of pure loyalty calls that reduced donor attrition by more than 10% over a year. These calls contain no ‘ask’; instead, they harness the power of the telephone by talking with and listening to supporters, building real and lasting relationships.

Copyright © 2013 John Wiley & Sons, Ltd.     

TV viewing and physical activity: a segment analysis for social marketing

• Elevated television viewing and physical inactivity promote sedentary behavior, leading to obesity. Yet, modifying the behavior has received a limited academic investigation. Thus, the purpose of this exploratory study is to develop segments relating to such behavior, and propose TV viewing‐reduction and physical activity‐enhancing strategies for the various segments.
• Using data from a mall, the multiple regression and analysis of variance (ANOVA) led to the identification of four segments: alert, inactive, action, and ideal. Results indicate that those engaged in physical activity appear to watch less TV, and that age and gender do not have a significant impact on TV viewing. The managers can use the findings, segments, and strategies to create appeals for target social marketing.

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.

     

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.     

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.     

Pledger modelling: Help the Aged case study

• The recruitment of pledgers (as a proxy for potential legators) to charitable organisations plays a vital role in their continued success, and as a percentage of all fundraising income generated it can represent substantial proportions. However, of all the ‘donation asks’ made of supporters, asking for a legacy is the most difficult. Therefore, it is important that the target audience should be as well researched and highly targeted as possible.
• Help the Aged had reached the stage where decisions need to be made about its future marketing in order to protect longer-term income. The findings of this legacy targeting project were to feed into communication programmes, direct marketing, and the overall legacy marketing strategy.
• The key objective was to identify the best prospects to mail a legacy ask to, across the supporter database, with the likelihood that they are going to pledge as a result.
• It was found that whilst tailored data analysis comes at a price, the average value of a legacy justifies the cost of using sophisticated targeting tools. However, because of the pledge-to-legacy time lapse, there will always be issues with measuring any long-term return on investment (ROI). Nonetheless, pledgers have to be taken on their word for the purpose of testing (and subsequent rollouts). Pledge data should be tested and the outcomes should inform legacy marketing. However, as mentioned above, pledgers necessarily need to be taken on their word and therefore, formulating models based on the type and/or value of pledges is not recommended.

Copyright © 2005 John Wiley & Sons, Ltd.     

Relational care in communication as the basis of nonprofit fundraising: Theorizing professional ethics based in stewardship and ethics of care

At its core, fundraising is relationship building. Therefore, ethical fundraising requires cultivating genuine, care-based relationships between various stakeholders by considering relational goals and communicative practices. We advance an ethics of care-oriented approach toward fundraising based in nurturing authentic relationships with multiple organizational stakeholders, including donors, employees, beneficiaries, and volunteers. Drawing upon ethics of care and stewardship scholarship based in public relations, the purpose of this article is to propose relational care in communication through dialogue as an ethical springboard of nonprofit fundraising.     

Cause‐related marketing and customer donations in an online marketplace

• eBay for Charity provides mechanisms for embedding charitable fundraising and donations into the UK's largest online marketplace, with 18 million unique visitors each month. This paper explores some of our findings concerning the impact of charitable activity on the behaviour of those who participate, including buyers, sellers, and the charities themselves, and suggests ways these findings could be applied to other forms of online fundraising in the future.

Copyright © 2012 John Wiley & Sons, Ltd.