The Mediating Role of Identification with a Nonprofit Organization in the Relationship Between Competition and Charitable Behaviors

Abstract

Our aim was to demonstrate how competition among nonprofit organizations (NPOs) influences people's charitable behaviors, such as donating and volunteering. We used structural equation modeling to analyze 205 responses from: (a) randomly selected individuals on the donor lists of 3 leading NPOs in China, and (b) students at 3 large universities in China. The results reveal that as competition amongst NPOs increased, the individuals' identification with NPOs became greater. Further, as the respondents' NPO identification increased, their charitable behaviors relative to the organization also increased; thus, identification played a mediating role between competition and donating and/or volunteering. These findings suggest that managers of NPOs can use competition to help potential supporters better identify with those organizations, increasing the likelihood of gaining support by more effectively distinguishing their organization from other NPOs. Given that we found donations were a direct result of identification, advertising efforts should be focused on creating a distinctive NPO identity with which members of the public can relate.

Segmentation of individual donors to charitable organizations

“…This research further concludes that one’s attainment of higher levels of altruism, i.e., to becoming more idealistic and fairness driven, leads to a greater likelihood for charitable giving. However, this finding appears to conflict with the research of Hou et al ( 2014 ) who conclude that although one may be intrinsically motivated to give for selfless reasons, most donations are actually made in response to some form of solicitation in which an individual may have the expectation of receiving a benefit in exchange for a contribution. These contrasting findings suggests that altruism is not necessarily devoid of egoistic motivations.…”

“…A branch of the literature also examines segmentation based on the types of charities or causes to which individual donors are drawn (e.g., Hou et al, 2014 ; Lee et al, 2017 ). According to Hou et al ( 2014 ) and Taylor and Miller-Stevens ( 2019 ), the appropriateness of this method of segmentation is based on social identify theory in which individuals find a greater sense of self and personal satisfaction by affiliating with organizations with which they personally identify.…”

“…Despite this complexity in applying marketing practice to the nonprofit sector, a key element of the discipline must be included in planning and implementation. That is, at the most fundamental level, charitable organizations must thoroughly identify and analyze donor market segments rather than view them as a homogenous group (Hou et al, 2014 ; Terech, 2018 ). Consequently a growing yet far from conclusive body of research has been conducted in which the similarities and distinctions between multiple possible donor segments have been examined along such areas as socio-demographic and behavioral bases.…”

“…Focused messaging that appeals to the desires of each segment is a crucial component of such a targeted strategic marketing approach (Kemp et al, 2013 ; Hou et al, 2014 ). Additionally, due to their philanthropic nature, charitable organizations have limited funds to begin with, particularly for marketing research and administrative costs (de Vries et al, 2015 ).…”

Understanding the Dynamics of the Individual Donor’s Trust Damage in the Philanthropic Sector

“…The same as previous studies, participants' expected donation intentions (GI) were measured by assessing their expected donation amount and donation frequency (Hou et al 2014). Confirmation (CON) was measured by five items developed in this study.…”