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

Abstract

The paper provides an analysis on fundraising competitive forces of small art and culture organizations in order to identify optimal features of fundraising strategy development during and after crisis time when absence of donors becomes a pressing issue. The analysis is fulfilled based on Michael Porter five forces model structure. Fundraising strategies should focus on intensive development of advanced communication with donors through modern technology application and reflect an integral vision of social needs which is the key success factor of fundraising strategy implementation in independent autonomous organizations. Financial resources in nonprofit sector seriously affect the stability of programs implementation. The lack of stability undermines organization efficiency what is evident to donors. This requires formulation of strategy for professional and repetitive fundraising.

Non-profit Organisations in the Current World

“…Persuasion, motivating actors to spend resources Raising funds for the realization of activities, social good and interests Function of management Mikuš (2015) says that the determinant of successful fundraising is trust, which is linked to the need to achieve transparency, the credibility of organisations (Radilova and Ziomek, 2020;Di Lauro et al, 2019). Another important characteristic of fundraising is its need for stability and certainty, which continue to influence the sustainability of nonprofit organizations (Batti, 2014).…”

“…Quite significant benefits of this shift include, among others, increased interaction and immediacy of actors' response, increased communication reach virtually to a global level, reduced costs, improved opportunities for collaboration and visibility (Raja-Yusof et al, 2016). Specifically, social media and communication can be used to form strong and intense relationships with actors and thus build so-called Customer Relationship Management (also CRM; Di Lauro et al, 2019;Maqbool et al, 2019;Radilova and Ziomek, 2020). Social media as a fundraising tool can also bring additional and benefits such as high transparency, credibility, better engagement with actors and the possibility to more easily gain support and improve image (Di Lauro et al, 2019).…”

“…We can also observe a relatively significant change in fundraising strategies (Raja-Yusof et al, 2016), towards the formation of an effective and functional strategy in line with the principles of strategic management (from audience identification, through the formulation of objectives, the selection of tools, the creation of a budget and action plan and media mix to evaluation; Duong, 2017;Maqbool et al, 2019;Radilova and Ziomek, 2020). Social media strategies can (e.g., according to Di Lauro et al, 2019) be divided into generic social media management (as a continuum) and specific campaign management (as a one-off event); furthermore, strategies can be shaped as responsive and proactive (as a so-called push factor of donor engagement); or a more indirect approach to social media activity can be followed, leaning towards only informative activity (Comfort and Hetser, 2019).…”