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- Title
Developing Donor Relationships: The Role of the Breadth of Giving.
- Authors
Khodakarami, Farnoosh; Petersen, J. Andrew; Venkatesan, Rajkumar
- Abstract
This research proposes a mechanism to develop long-term donor relationships, a major challenge in the nonprofit industry. The authors propose a metric, donation variety, which captures a donor's breadth of donations with a given nonprofit organization, controlling for the distribution of donations to different initiatives. Using donation data spanning 20 years from a major U.S. public university, the authors find that improvements in donation variety increase the likelihood that the donor will make a subsequent donation, increase the donation amount, and reduce the sensitivity of donations to negative macroeconomic shocks. In the acquisition phase, most donors give to a single initiative, and these decisions are more influenced by a donor's intrinsic motivations. In contrast, as the donor-nonprofit organization relationship develops over time, nonprofit marketing efforts have a more significant influence on a donor's decision to give to multiple initiatives. Finally, the authors conduct a field study that validates the econometric analysis and provides causal evidence that marketing efforts by nonprofit organizations can encourage donors to spread donations across multiple initiatives.
- Subjects
NONPROFIT organization finance; GIFTS; NONPROFIT organizations -- Marketing; PUBLIC universities &; colleges financing; INTRINSIC motivation; INTERPERSONAL relations; BUSINESS communication
- Publication
Journal of Marketing, 2015, Vol 79, Issue 4, p77
- ISSN
0022-2429
- Publication type
Article
- DOI
10.1509/jm.14.0351