Explaining monetary donations to international development organisations: A factorial survey approach

Kinsbergen, S.; Tolsma, Jochem

doi:10.1016/j.ssresearch.2013.06.011

Cited by 24 publications

(25 citation statements)

References 52 publications

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“…High overhead costs may be viewed as contributing to excessive executive compensation, and according to Callen, Klein, and Tinkelman (2003), the administrative expense ratio is negatively related to the number of major donors on the finance committee which indicates that donors favor program spending over higher levels of salaries and benefits. Kinsbergen and Tolsma (2013) found a negative relationship between donors' potential giving decisions and overhead costs, although they also state that, "[a]lthough donors have a strong aversion regarding overhead costs, we find that donors seem to value the capacities of paid staff members and are, to a certain extent, willing to pay the price for these" (p. 1571). Evidence to the contrary also exists since Tinkelman and Mankaney (2007) determined that donors potentially punish organizations that spend excessive amounts on executive compensation, and recent work by Balsam and Harris (2014) concluded that donors decrease giving to organizations after a disclosure of high executive compensation.…”

Section: The Evolution Of Nonprofit Financial Performance Studiesmentioning

confidence: 80%

“…2. Some research also suggests that donors may trust nonprofits (Kinsbergen & Tolsma, 2013;O'Neill, 2009;Osili et al, 2012;Sargeant, Ford, & West, 2006) and give primarily because of the positive feeling they get from making the gift (Andreoni, 1989(Andreoni, , 1990(Andreoni, , 2001Harbaugh, Mayr, & Burghart, 2007;Osili et al, 2012) as well as personal preference and background (Breeze, 2013). 3.…”

Section: Notesmentioning

confidence: 99%

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The Impact of Employee Compensation and Financial Performance on Nonprofit Organization Donations

Yan

Sloan

2014

The American Review of Public Administration

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This study focuses on the complex interaction between employee compensation and organizational financial performance. In particular, we investigate the impact of higher than median employee compensation on nonprofit donations and whether such impact is conditional on the financial performance of the organization. Using recent panel data from 10,206 nonprofit organizations across multiple tax designations, we test the hypotheses with Tobit maximum likelihood estimation that incorporates measures of employee compensation, financial performance, financial capacity, and controls for state factors and nonprofit type. Findings demonstrate that employee compensation above the median is unfavorable for donations overall; however, the negative effect is mitigated by sound financial performance. This study highlights the collective impact that exists between financial performance and employee compensation on organizational donative resources, directly speaks to an organization's internal capacity to raise private revenue, and adds subtlety to the ongoing discussions of how much is enough compensation for high-quality nonprofit leadership.Employee compensation and financial performance are two of many potential considerations for donors when it comes to the decision of where and how much to give to nonprofit organizations. Both factors figure into assessments of nonprofit organizations by watchdog groups and are monitored by board members and other organizational stakeholders as well. Donors may be drawn more to organizations they feel will provide good stewardship of their donated monies or withhold gifts from an organization they deem either excessive in its employee compensation or inept in dealing with finances, and the cumulative effect of multiple individual giving decisions affects an organization's bottom line. This study tests the interaction between nonprofit financial performance and employee compensation and its impact on private donations. To the best of our knowledge, this is the first study to examine such interaction.

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Section: The Evolution Of Nonprofit Financial Performance Studiesmentioning

confidence: 80%

Section: Notesmentioning

confidence: 99%

The Impact of Employee Compensation and Financial Performance on Nonprofit Organization Donations

Yan

Sloan

2014

The American Review of Public Administration

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“…The increased attention to the overhead ratio—the proportion of total expenses devoted to nonprogram-related expenditures—has exerted pressure on nonprofits to pursue extreme administrative efficiency at the expense of investment in infrastructure (Lecy & Searing, 2015). Empirical studies have shown that donors favor spending more on programs and punish nonprofits that spend excessive amounts on salaries and overhead costs (Balsam & Harris, 2014; Callen, Klein, & Tinkelman, 2003; Tinkelman & Mankaney, 2007), even though a few recent empirical results suggest that donors understand the need for paid professionals (see Kinsbergen & Tolsma, 2013; Yan & Sloan, 2016).…”

Section: Previous Literaturementioning

confidence: 99%

Caught Between Volunteerism and Professionalism: Support by Nonprofit Leaders for the Donative Labor Hypothesis

Kim

Charbonneau

2018

Review of Public Personnel Administration

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The rise of professionalism within the nonprofit sector has transformed the sector’s reliance on well-meaning volunteers to paid professionals. While the professionalization of the nonprofit workforce is likely to continue, nonprofits are increasingly challenged for their inability to pay competitive wages. Our study argues that a social expectation for nonprofit employees to forgo some of their wages influences the donative labor narrative, which in turn impacts low nonprofit wages. We present data from an online survey experiment of executive directors at 467 nonprofits, along with their organizations’ Form 990 filings, to contrast socially biased attitudes and genuine views toward the donative labor hypothesis. The findings illustrate that the donative labor narrative should be understood as a result of social expectations for sacrifice of nonprofit employees, rather than a simple outcome of supply and demand in the labor market. We discuss the need to reframe the widespread donative labor narrative.

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“…A second stream of research focuses on the different motives for donations to specific NPOs and the organizational characteristics NPOs can differ on (Wiepking, 2010). In this research domain, comparisons of NPOs usually rely on either their organizational characteristics or the goals of specific organizations (Bennett, 2003;Kinsbergen & Tolsma, 2013). Sargeant, Ford, and West (2006) discuss how commitment to one NPO can be understood by reviewing the perceived emotional, familial and demonstrable utilities of that one organization.…”

Section: Donation Choicementioning

confidence: 99%

Choosing your charity: The importance of value congruence in two-stage donation choices

Dijk

Herk

Prins

2019

Journal of Business Research

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Charitable donations constitute choices, and donors' values influence both the choice to donate and the selected nonprofit organization (NPO). The current study proposes a new instrument to measure NPO values. The proposed two-stage analytical procedure is novel in this research area. The first stage shows that the personal value of universalism drives the general decision to donate. The second stage reveals that donating to a specific NPO depends on the congruency between the NPO values of the organization and the individual donor's NPO values. Furthermore, distinct NPO values are relevant to donation decisions such that NPO values can attract a particular type of donor to an NPO. These findings have pertinent implications for NPOs' chosen positioning strategies as it allows NPOs to collectively guard the qualities that increase general donations and individually distinguish themselves based on the specific NPO values that ensure alignment with their own donors.

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Explaining monetary donations to international development organisations: A factorial survey approach

Cited by 24 publications

References 52 publications

The Impact of Employee Compensation and Financial Performance on Nonprofit Organization Donations

The Impact of Employee Compensation and Financial Performance on Nonprofit Organization Donations

Caught Between Volunteerism and Professionalism: Support by Nonprofit Leaders for the Donative Labor Hypothesis

Choosing your charity: The importance of value congruence in two-stage donation choices

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