Determinants of donations in private nonprofit markets

Ökten, Çağla; Weisbrod, Burton A.

doi:10.1016/s0047-2727(99)00066-3

Cited by 430 publications

(396 citation statements)

References 12 publications

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“…Andreoni and Payne (2011) find a particularly strong effect of one dollar spent on fundraising yielding more than five dollars of donations. However, Okten and Weisbrod (2000) report strikingly different results for NGO engaged in specific (domestic) sectors such as hospitals and research institutions. This implies that previous results do not necessarily carry over to NGOs engaged in international development cooperation.…”

Section: Background and Hypothesesmentioning

confidence: 90%

“…Yet it remains open to debate whether fundraising is effective in terms of having positive causal effects on private donations. The previous literature on charities at the local or national level argues that fundraising expenditures have two opposing effects on private donations (see, e.g., Khanna and Sandler, 2000;Okten and Weisbrod, 2000).…”

Section: Background and Hypothesesmentioning

confidence: 99%

“…The government may engage in "leadership giving" (Andreoni, 2006). Leadership giving provides a signal to other donors that the charity is of high quality and its cause deserves to be supported (see also Okten and Weisbrod, 2000). 8 The government, by providing seed money, can avoid an outcome with no giving at all that may otherwise result from private donors' lack of information.…”

Section: H1: Even Though Donors May Regard Fundraising As Wasteful Pmentioning

confidence: 99%

“…It has been shown that the effects of fundraising and government grants on private donations vary substantially across sectors in which local NGOs are active (see, e.g., Okten and Weisbrod, 2000). This heterogeneity also implies that results found for charities at home do not necessarily carry over to NGOs engaged in international development cooperation.…”

Section: Introductionmentioning

confidence: 99%

“…See Section 2 for details on the relevant literature. 2 For example, Okten and Weisbrod (2000) note that two-stage models would ideally use instruments other than lagged values of the endogenous variables. Payne (1998: 340) notes that it is "quite difficult" to find measures that are correlated with government grants but are not correlated with private donations.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Private Donations, Government Grants, Commercial Activities, and Fundraising: Cointegration and Causality for NGOs in International Development Cooperation

Herzer

Nunnenkamp

2013

World Development

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Abstract:NGOs could help scale up foreign aid efforts by mobilizing private donations. However, fundraising activities do not necessarily result in higher donations, and substitution effects between different sources of revenue may diminish the overall pool of NGOs' resources. This paper examines the determinants of private donations to US-based NGOs engaged in international development cooperation. We employ panel cointegration and causality techniques to analyze the interactions between private donations, government grants, commercial revenues and fundraising expenditures. According to our results, a marginal dollar spent on fundraising yields almost five dollars in new donations in the long run. Government grants crowd in private donations in the long run, whereas commercial revenues crowd out donations in the long run. Moreover, our panel vector error correction model reveals complex short-run dynamics.

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Section: Background and Hypothesesmentioning

confidence: 90%

Section: Background and Hypothesesmentioning

confidence: 99%

Section: H1: Even Though Donors May Regard Fundraising As Wasteful Pmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Private Donations, Government Grants, Commercial Activities, and Fundraising: Cointegration and Causality for NGOs in International Development Cooperation

Herzer

Nunnenkamp

2013

World Development

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Nonprofit Finance

and¹,

Soh²

2016

The Jossey&;#x02010;Bass Handbook of Nonprofit Leadership and Management

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The role of operational expenditures and misalignments in fundraising for international humanitarian aid

Turrini

Besiou

Papies

et al. 2019

J of Ops Management

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Funding for international humanitarian aid falls far behind demand for disaster response, hampering the operations of international humanitarian organizations (IHOs). One remedy to close this gap is to increase the effectiveness of fundraising activities for IHOs. This remedy means spending as little as possible in fundraising activities but, at the same time, still receiving sufficient donations to implement disaster response programs in response to the needs that arise when disasters occur. We contribute to the literature by theoretically developing and estimating a conceptual framework that links donation behavior to the operations that IHOs aim to pursue; the framework incorporates operational costs communicated in appeals, fundraising efforts, and media attention. We argue that effects are not homogenous across disasters but that IHOs can leverage public attention and disaster and appeal characteristics, such as operational costs, to increase donations. We test the framework on a unique data set for disaster response programs operated by the International Federation of Red Cross and Red Crescent Societies (IFRC), covering 174 disasters to which the IFRC responded between 2010 and 2017.

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Determinants of donations in private nonprofit markets

Cited by 430 publications

References 12 publications

Private Donations, Government Grants, Commercial Activities, and Fundraising: Cointegration and Causality for NGOs in International Development Cooperation

Private Donations, Government Grants, Commercial Activities, and Fundraising: Cointegration and Causality for NGOs in International Development Cooperation

Nonprofit Finance

The role of operational expenditures and misalignments in fundraising for international humanitarian aid

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