Padm 7642 theories summer 2011

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This slideshow discusses the different theories of nonprofit fundraising. It was developed for students at the University of Memphis.

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Padm 7642 theories summer 2011

  1. 1. PADM 7642<br />Leigh N. Hersey, PhD<br />Theories of Giving and Fundraising<br />
  2. 2. Donor Motivations<br />Internal, external<br />Intrinsic, extrinsic<br />Most people have mixed reasons – helping other people and meeting personal goals<br />
  3. 3. Altruism<br />Donor should not receive anything back from the giving process – not even a good feeling.<br />Very rare<br />
  4. 4. Identification Theory<br />Individuals are most likely to give to issues with which they identify<br />
  5. 5. Moral Citizenship of Care<br />How an individual perceives his or her responsibilities within the moral realm of society.<br />
  6. 6. Source: Giving Memphis 2008<br />
  7. 7. Why important for fundraisers?<br />Each individual is unique and therefore it is important for fundraisers to spend time listening to donors and finding out why they feel motivated to support any cause.<br />
  8. 8. The Seven Faces of Philanthropy: A New Approach to Cultivating Major Donors <br />1. The Communitarian: Doing Good Makes Sense2. The Devout: Doing Good is God’s Will3. The Investor: Doing Good is Good Business4. The Socialite: Doing Good is Fun5. The Altruist: Doing Good Feels Right6. The Repayer: Doing Good in Return7. The Dynast: Doing Good is a Family Tradition<br />Russ Alan Prince and Karen Maru File (2001) Jossey-Bass Pfeiffer<br />
  9. 9. Theories for Fundraising<br />Systems theory<br />Organization does not exist in isolation, but is part of larger social, economic and political systems that affect and are affected by the organization’s behavior<br />For fundraising – successful fundraisers must be aware of the environment<br />
  10. 10. Social Exchange Theory <br />Rather than an economic exchange ($$ for goods) donations create social exchanges – financial support for intangibles like prestige, self-esteem, recognition, etc.<br />Based on the principles of interpersonal social behavior<br />
  11. 11. Two Components of Social Exchange<br />Grants economics - a spectrum of gifts from gifts of coercion to gifts of benevolence.<br />Reciprocity – exchange of activity that is rewarding and costly<br />Voluntary<br />Unspecified obligations<br />
  12. 12. Benefits of Social Exchange<br />Extrinsic<br />Intrinsic<br />Mutual<br />
  13. 13. What social exchange theory means to fundraisers<br />Success depends on maintaining and nurturing interpersonal social relationships<br />Depends on organization’s ability to serve its various publics<br />***While social exchange can be used in a manipulative way, fundraisers should not partake in manipulative activities.<br />
  14. 14. Warm Glow Giving<br />Motivated by “warm glow” or the happiness gained from having given an amount to the public good<br />Egoistic<br />Altruistic<br />Fundraisers provides these opportunities.<br />
  15. 15. Prestige & Signaling<br />Intrinsic effect – how people care about the public good their donations underwrite<br />Prestige effect – the value of the recognition<br />Ex: Donor Lists<br />No Amounts<br />List Amounts<br />By Categories<br />
  16. 16. Coorientation Model<br />Relationship between two individuals (donor and fundraiser) and some object of communication (fundraising opportunity)<br />If two individuals have positive relationship, donor will either be more likely to consider the opportunity or less likely to continue the relationship<br />
  17. 17. Persuasion Theory<br />Reciprocity<br />Scarcity – uncovering and describing the organization’s uncommon or unique features that cannot be found elsewhere<br />Matching gifts<br />Campaigns/naming<br />Credibility<br />Consistency<br />
  18. 18. Philanthropic Psychology<br />Social information about the amount of another donor’s contribution influences the level of a target donor’s giving<br />Larger previous gift leads to larger gifts<br />Ideal gift to refer to – 90 – 95 percentile<br />Gifts larger when identify with previous donor, by gender or by role in organization<br />Results in more disciplined approach to fundraising and the creation of more meaningful and satisfying philanthropic relationships for donors.<br />

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