The Effects of Capital Campaigns on Other Nonprofits’ Fundraising

Abstract

Keywords: capital campaign , fundraising , artsCAPITAL CAMPAIGNS HAVE THE GOAL of attracting large amounts of funds in short periods of time (Pierpont 2011 ). Thus capital campaigns are qualitatively different from annual drives or the near-constant cultivation of donations that organizations rely on to maintain operational and programmatic activities. As a result of these differences, campaigns can be potentially disruptive to the natural distribution of funds to area nonprofits by disproportionately directing area donations to a single organization.The literature explicitly on capital campaigns is quite limited. Pierpont ( 2011 ) has examined the structure and process of capital campaigns. Woronkowicz ( 2016 ) examines the effects of nonprofit facilities projects on financial vulnerability and finds that, for organizations that build new facilities, capital financing can potentially have adverse impacts on overall financial vulnerability, though it is unclear whether these effects are long term. To date, however, no study has examined the impact of large capital campaigns on the fundraising success of other nonprofit organizations, and studies of how (and whether) the fundraising activity of one nonprofit affects the success of another nonprofit in the same market (Lyons 2003 ;Omura and Forster 2014 ;Twu 2007 ) have produced mixed results.

The Effects of Capital Campaigns on Local Nonprofit Ecologies

“…In addition to offering a more robust test of the theory of capital campaign impact by broadening the definition of a local nonprofit ecology, this study extends upon the theory of capital campaign impact (Woronkowicz & Nicholson-Crotty, 2017) by testing the effects campaigns have on ecological size. Regarding the former, this study finds that the theory of capital campaign impact applies when a local nonprofit ecology is broadly conceived of as the set of adjacent (i.e., in the same county) nonprofits in all subsectors as a campaign nonprofit.…”

Fitting in as an outsider: a resource dependence theory approach to outside boards

“…The estimation of organizations typically involves unobservable organization-specific effects where a failure to control for such effects can result in inconsistent estimates. To control for these organization-specific effects, a panel data linear regression with FE specification was used (O'Regan and Oster, 2005;Woronkowicz and Nicholson-Crotty, 2017). FE estimations control for firm-level sources of heterogeneity (O'Regan and Oster, 2005;Payne, 1998).…”

Fundraising competitive forces of small art and cultural NGOs during the crisis

“…Community living in poor environment not equipped by NGO creativity and power deals only with public and on-profit services delivered. The choice within this capabilities conditioned by not the only financial factor can be targeted nonprofits (Woronkowicz et al, 2017).…”