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

Yi, David

doi:10.1002/mde.1503

Cited by 17 publications

(16 citation statements)

References 24 publications

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“…Charities have strong incentives to downplay fundraising costs in order to obtain ''good scores'' from watchdog organizations such as BBB Wise Giving Alliance, Charity Navigator, or Charity Watch. Yi (2010) has shown that many factors such as size and government grants influence fundraising efficiency. A high fundraising efficiency can be achieved by limiting expenses on fundraising.…”

Section: Dependent Variablementioning

confidence: 99%

Resource Dependence In Non-profit Organizations: Is It Harder To Fundraise If You Diversify Your Revenue Structure?

2016

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This article explores how fundraising efficiency is affected by changes in diversification of revenues in non-profit organizations. It uses random effect regression and Arellano-Bond models to study this phenomenon in a sample of 10358 US non-profits during the 1997-2007 period. We find a negative impact on fundraising efficiency when NPOs alter their locus of dependence and change their pattern of diversification. This effect is impacted by organizational size and industry. Previous studies have suggested that income heterogeneity is associated with organizational stability and financial strength. Using a change (versus level) model of funding diversity, our work shows that increased diversification leads to a higher operational inefficiency that could be penalized by potential donors.Résumé Cet article explore la façon dont le rendement des collectes de fonds est influencé par les changements survenus dans la diversification des revenus des organismes sans but lucratif. Il emploie des modèles de régression à effet aléatoire et Arellano-Bond pour étudier ce phénomène à l'aide des données de 10,358 organismes sans but lucratif américains datant de 1997 à 2007. Nous remarquons que le rendement des collectes subit des effets négatifs lorsque les organismes altèrent leur rapport de dépendance et modifient leur modèle de diversification. Cet effet est influencé par la taille et le secteur des dits organismes. Des études précédentes ont suggéré que l'hétérogénéité des revenus est associée à la stabilité et à la force financière de l'organisme. À l'aide d'un modèle (niveaux de comparaison) d'étude des changements de la diversité des fonds, nos travaux démontrent que la diversification accrue provoque un rendement opérationnel supérieur, qui pourrait être pénalisé par de potentiels donateurs. & Ó scar Rodríguez Ruiz orr@ccee.ucm.es Zusammenfassung Dieser Beitrag untersucht, wie sich die Ä nderungen in der Einnahmendiversifizierung gemeinnütziger Organisationen auf die Effizienz der Mittelbeschaffung auswirken. Man stützt sich dabei auf die Random-Effects-Regressions-und Arellano-Bond-Modelle, um dieses Phänomen anhand einer Stichprobe von 10.358 US-amerikanischen gemeinnützigen Organisationen im Zeitraum von 1997 bis 2007 zu erforschen. Das Ergebnis zeigt eine negative Auswirkung auf die Effizienz der Mittelbeschaffung, wenn die gemeinnützigen Organisationen ihren Locus der Abhängigkeit und ihre Diversifizierungsstruktur ändern. Die Größe und Branche der Organisation beeinflussen diesen Effekt. Vorherige Studien deuteten darauf hin, dass die Einnahmenheterogenität mit der Stabilität und Finanzkraft einer Organisation in Verbindung steht. Anhand eines Ä nderungsmodells (im Gegensatz zu einem Ebenenmodell) der Finanzierungsdiversität wird gezeigt, dass eine größere Diversifizierung zu einer erhöhten betrieblichen Ineffizienz führt, die von potenziellen Spendern geahndet werden könnte.Resumen El presente artículo explora cómo la eficiencia en la recaudación de fondos se ve afectada por cambios en la diversificación de los ...

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Section: Dependent Variablementioning

confidence: 99%

Resource Dependence In Non-profit Organizations: Is It Harder To Fundraise If You Diversify Your Revenue Structure?

2016

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“…Repertoire is here meant to support communities around the classics, the native music and the tradition, they have grown up for the cultural dialogue with (African American, Hispanic Latino, Asian American, American Indian, ...). At the same time, some mid-and smallsized organizations of this cluster may show 'more freedom to experiment, since audiences are less likely to associate them with tradition and propensity for classics' (Ross, 2017;Yi, 2010;Poon, Lai, 2008). Fundraising is indispensable for more than 50 percent of revenues.…”

Section: Findings Ed Al Vero Ispiravasi…mentioning

confidence: 99%

Memory, Marketing and Economic Performances in Usa Symphony Orchestras and Opera Houses

Besana¹,

Esposito²

2017

Eur. j. econ. bus. stud.

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When resources are scarce at crisis times and when competition is intense with other creative supplies, USA symphony orchestras and opera houses memorize and perform their repertoires (or repertories), so that seasons are crucially bundled between tradition and innovation. Since the beginning of the latest financial and real crisis (2007), USA classical music has seen different levels of funding from the federal government and businesses have encouraged more nonconventional programming (Pompe, Tamburri, 2016;Turbide, Laurin, 2009;Ravanas, 2008; Rushton, 2008;Turrini, 2006;Smith, 2007). On one side, fundraisers have stressed bundles (contemporary music with tradition) to sponsors; on the other side, marketing officers have emphasized the repertoire memory to audiences who constantly love Traviata, Boheme and Don Giovanni with echo of famous regisseurs, scenographers, etc. This is quite the same worldwide (Cancellieri, Turini, 2016). Fundraising and marketing affect economic performances of classical music, also thanks to social media and networks. Consumers have access to information about ticketing, rehearsals, present and past performances, etc. Art organizations strive to manage communication via social media to create brand values. Social media support both fundraising and marketing, as they mediate to sponsors and audiences: values, advocacy, videos and photos of the repertoire and nonconventional programming, which continually increase trustworthy relationships and nurture memories.This paper investigates 200 USA symphony orchestras and opera houses according to repertoires, revenues, expenses and gains in 2008 and 2015. With cluster analysis, three profiles emerge with different strategies, performances and emphasis on memory or innovation.

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“…To date, no study qualifying how many techniques were applied within each organization, or measuring the intensity of use of fund‐raising management techniques used, has been published. Another central aspect of fund‐raising management practices is strategic management. The practical relevance of strategic planning (Lindahl and Winship, ; Ferson and Schadt, ; Hanson, ; Bush, ) and performance measurement (Paton, ; Ritchie and Kolodinsky, ; Brooks, ; Aldrich, ; Yi, ) in fund‐raising was a target of nonprofit research early on. Conversely, in their empirical research on arts organizations, Turbide et al () found that governance was carried out more spontaneously than in a planned manner (Turbide et al , , p. 7).…”

Section: Fund‐raising Governance and Performancementioning

confidence: 99%

“…Yi () identified a relationship between fund‐raising performance and organization size. Therefore, we test the additional influence of the organization size, expressed by operational expenditure by means of a covariate analysis.…”

Section: Linkage Of Fund‐raising Governance and Fund‐raising Performancementioning

confidence: 99%

Towards fund‐raising excellence in museums—linking governance with performance

Betzler

Gmür

2012

J of Philanthropy and Mktg

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This paper presents an empirical analysis of the relationship between fund‐raising governance characteristics and fund‐raising performance in a sample of 98 Swiss museums. We propose a governance model that reflects the developmental level of an organization's fund‐raising in regard to success. Inspired by research on business excellence, the proposed model extends the primarily qualitative and theory‐based concepts of dynamic organization life‐cycle models, which are found in nonprofit research, by taking a quantitative approach. We explore five fund‐raising governance factors: boards' fund‐raising activity, board as symbolic decision maker, board as donor, fund‐raising strategic planning and controlling, and fund‐raising techniques. Museums are classified into fund‐raising governance levels: ‘zero’, ‘awareness’, ‘composition’ and ‘integration’. The model is shown to be linked with fund‐raising income. Copyright © 2012 John Wiley & Sons, Ltd.

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

Cited by 17 publications

References 24 publications

Resource Dependence In Non-profit Organizations: Is It Harder To Fundraise If You Diversify Your Revenue Structure?

Resource Dependence In Non-profit Organizations: Is It Harder To Fundraise If You Diversify Your Revenue Structure?

Memory, Marketing and Economic Performances in Usa Symphony Orchestras and Opera Houses

Towards fund‐raising excellence in museums—linking governance with performance

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