Competition is on the rise: To what extent does traditional fundraising performance research apply in competitive environments?

Abstract

Research on fundraising performance links organizational size, professional donor engagement, and legitimacy with fundraising outcomes. But can we assume the same factors will positively impact fundraising performance in light of increasing competition among nonprofits? This study explores whether and how traditional factors known to impact fundraising performance perform in the context of online fundraising tournaments, an environment that is explicitly competitive as those who lose drop out. Our analysis draws on data from 596 US nonprofits that participated in such tournaments. This inquiry addresses increasing competitive pressures placed on nonprofits as they likely cannot avoid competition in the future.

Message (in)congruence: Tweeting while competing for donations

“…In a typical offline, contributory donation setting, donors tend to care about some combination of quality, price, and fundraising (Weisbrod & Dominguez, 1986). However, online donations are driven by different factors (Walk et al, 2022), including social network effects and quality of online communication (Saxton & Wang, 2014). Nonprofit organizations can foster better online connections with their stakeholders through the strategic use of social networking sites (Hu & Shi, 2017).…”

“…Many nonprofits rely on donated income to deliver on their missions. When it comes to securing donations, we see three trends growing in prominence: online giving (Saxton & Wang, 2014), social media use (Suh et al, 2021), and gamification (Curley et al, 2021; Walk et al, 2022). Mechanisms for giving are evolving, with an ever-growing reliance on web-based platforms.…”

Exploring the Impact of Board Member Financial and Time Contributions on Nonprofit Fiscal Performance

“…Prior research investigating the relationship between board-related variables and various performance measures has typically controlled for organizational age (Paarlberg & Hwang, 2017;Walk et al, 2022); number of full-time employees (Cody et al, 2022;Hung, 2022); and board size (Cody et al, 2022;Hodge & Piccolo, 2011). Organizational age has been positively associated with fundraising performance and can be an indicator of a nonprofit's stability and of legitimacy (Paarlberg & Hwang, 2017).…”

Competition and Sensegiving: Nonprofit Markets and Organizational Signaling

“…The nonprofit sector is competitive and as the sector continues to grow, competition, particularly for resources, is only likely to increase further. Although nonprofits may not acknowledge the idea that they must compete to survive (Curley et al, 2021), cognition of the nature of their competitive environment is essential for identifying ways to thrive in the resource acquisition market (Chetkovich & Frumkin, 2003;Tuckman, 1998;Walk et al, 2022.). In this setting, nonprofits tend to focus on external signaling to potential donors regarding their financial stewardship and reputation as a provider of efficient, quality services (Barman, 2002;Weisbrod, 1998).…”