Feedback Information and Contributions to Not-for-Profit Enterprises: Experimental Investigations and Implications for Large-Scale Fund-Raising

2004 ◽  
Vol 32 (5) ◽  
pp. 512-527 ◽  
Author(s):  
Michael Jones ◽  
Michael Mckee
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stacey Kaden ◽  
Gary Peters ◽  
Juan Manuel Sanchez ◽  
Gary M. Fleischman

PurposeThe authors extend research suggesting that external funders reduce their contributions to not-for-profit (NFP) organizations in response to media-reported CEO compensation levels.Design/methodology/approachEmploying a maximum archival sample of 44,807 observations from US Form 990s, the authors comprehensively assess the extent that high relative NFP CEO compensation is associated with decreases in future contributions.FindingsThe authors find that donors and grantors react negatively to high relative CEO compensation but do not react adversely to high absolute executive compensation. Contributors seem to take issue with CEO compensation when they perceive it absorbs a relatively large portion of the organizations’ total expenses, which may hinder the NFP’s mission. Additional findings suggest that excess cash held by the NFP significantly exacerbates the negative baseline relationship between future contributions and high relative CEO compensation. Finally, both individual donors and professional grantors are sensitive to cash NFP CEO compensation levels, but grantors are more sensitive to CEO noncash compensation.Research limitations/implicationsThe authors’ data are focused on larger NFP organizations, so this limits the generalizability of the study. Furthermore, survivorship bias potentially influences their time-series investigations because a current year large-scale decrease in funding due to high relative CEO compensation may cause some NFP firms to drop out of the sample the following year due to significant funding reductions.Originality/valueThe study makes three noteworthy contributions to the literature. First, the study documents that the negative association between high relative CEO compensation levels and future donor and grantor contributions is much more widespread than previous literature suggested. Second, the authors document that high relative CEO compensation levels that trigger reductions in future contributions are significantly exacerbated by excess cash held by the NFP. Finally, the authors find that more sophisticated grantors are more sensitive to noncash CEO compensation levels as compared with donors.


Author(s):  
Beate Störtkuhl

Architecture and urban planning were facing great challenges during the Weimar Republic, given the difficult economic context of the time. The housing conditions in Germany had already been problematic prior to the First World War. In the Weimar Republic, their improvement was defined as a communal, not-for-profit task. New urban quarters emerged and a new urban infrastructure had to be created, while many historic urban cores changed into a ‘city centre’ dominated by business and consumerism. In the optimistic, euphoric situation of societal renewal after the war, many architects produced visionary projects. Yet at the same time, they had to develop pragmatic approaches for a cost-saving, industrialized type of housing construction. Large settlements in Berlin and in Frankfurt, or the experimental Weißenhof settlement in Stuttgart as well as the Bauhaus represented the ideas of an architectural avant-garde that was internationally connected. The protagonists of modernism, the so-called Neues Bauen, dominated contemporary coverage and contributed, once they had been forced into exile in 1933, to the global reach of this current. Yet in reality, architecture and housing construction in the Weimar Republic were not dominated by the Neues Bauen. They can rather be described as multiple modernity, which showed fluid boundaries and permeability between radical modernist forms and traditionalist elements.


1988 ◽  
Vol 52 (3) ◽  
pp. 58-74 ◽  
Author(s):  
P. Rajan Varadarajan ◽  
Anil Menon

Cause-related marketing represents the confluence of perspectives from several specialized areas of inquiry such as marketing for nonprofit organizations, the promotion mix, corporate philanthropy, corporate social responsibility, fund-raising management, and public relations. The authors outline the concept of cause-related marketing, its characteristics, and how organizations, both for-profit and not-for-profit, can benefit from effective use of this promising marketing tool.


2002 ◽  
Vol 45 (11) ◽  
pp. 65-70 ◽  
Author(s):  
E. Benson

The Lake Ontario Waterfront Trail, currently stretching 350 kilometres along the shore of Lake Ontario, Canada, links 26 communities, 184 natural areas, 161 parks and promenades, 84 marinas and yacht clubs, hundreds of historic places, fairs, museums, art galleries and festivals. The Waterfront Trail is a catalyst for a new attitude and way of thinking towards the Lake Ontario waterfront and its watersheds - one that integrates ecological health, economic vitality and a sense of community. Since it was launched in 1995, the Trail has accompanied the protection of the most valued elements of the waterfront, and the transformation of under-utilized and environmentally degraded lands to vibrant places with businesses and jobs, parks and recreational facilities, green spaces, natural habitats and cultural venues and attractions. It is through the Trail that people have been mobilized to improve the waterfront as they have rediscovered the shoreline and understood the interconnections, both natural and cultural, that are so vital to its health and vitality. The Waterfront Regeneration Trust is the not-for-profit charitable organization that has been leading this large-scale greenway initiative over the past 10 years. While much has been accomplished, there remains much to do to enhance and expand the greenway. This presentation will focus on the lessons we have learned over the past decade in our involvement with more than 100 projects and what those lessons mean for the next decade of waterfront regeneration.


Author(s):  
Paul Kelly

Every organisation needs money to get going, and this includes non-profit ventures. The reasons why they need it may vary, as may the sources. To get a venture off the ground it generally needs ‘start-up funding’, whether it be borrowing £50 off your auntie to pay for the costs of printing some flyers, or maybe setting up a limited company, or borrowing £250,000 from a bank or financial institution to open several shops and an office. Whichever it is, you will have costs. So, unless you have a large sum of cash lying idle, you will need to find a way of raising money to get things started. Another reason for needing cash is if you know your venture, be it a new festival or a community arts venture, will not generate enough box office or other earned income to cover its costs, meaning you will be making a loss from the outset. In this case, if your project meets a well-articulated social need you will be able to make a case for start-up funding and money to cover its running costs. How you make the funding approach very much depends on your festival’s ethos and its legal structure. We covered the first of these in Chapter 2 and the legal issues are covered in more detail in Chapter 6. This chapter will give you the framework that ties together your festival objectives, its legal structure and the potential funding sources as well as some of the techniques you will need for raising that all-important cash. This chapter focuses mainly on fund-raising for not-for-profit or social enterprise festivals. The principles of persuading donors or bodies like an Arts Council are not that different from those of persuading commercial investors, other than that the return you would promise commercial investors would be financial rather than social or artistic objectives. The chapter starts by looking at those differences.


1992 ◽  
Vol 8 (30) ◽  
pp. 146-158
Author(s):  
Glenn Loney

Declarations that the ‘Fabulous Invalid’ on Broadway is, at last, terminally ill tend to be subject to the law of diminishing returns – or to claims that wolf has been cried once too often. Yet environmental symptoms are now added to a chronic economic condition, as the ‘theatre district’ loses its distinctive character in a pincer movement between large-scale speculative developments and the sadly familiar signs of inner-city decay. In an earlier article, in NTQ22 (May 1990), Glenn Loney, a widely published theatre writer and teacher, clarified, with special concern for a British readership, the many ‘Factors in the Broadway Equation’. Here, he takes a closer look at the productions of the season just past, with its glut of musicals, from the lavish to the just plain lousy, economic ‘single-person shows’ – and the sometimes more challenging products of the Off-Broadway and not-for-profit sectors. He concludes that civic subsidy, even for the commercial theatre, is now the only way of saving the Invalid's lingering life.


2005 ◽  
Vol 20 (3) ◽  
pp. 287-309 ◽  
Author(s):  
Saleha B. Khumawala ◽  
Linda M. Parsons ◽  
Teresa P. Gordon

We examine whether required disclosures regarding joint cost allocations raise concerns about the validity of efficiency ratios reported by not-for-profit organizations. An experimental design is used to hold constant the geographic location, size, and mission of competing charitable organizations. Participants include financial officers of not-for-profit organizations (preparers), foundation executives (expert donors), and students (novice donors). We find that preparers base contribution decisions almost entirely on the reported fund-raising cost and accept the validity of reported program ratios. Foundation executives, representing experienced users of not-for-profit financial statements, also appear to accept the joint cost allocations as reported. By contrast, novice users are the most attentive to the allocation disclosures and consider them more often when deciding on the amount of a hypothetical gift. Overall, there is little evidence that joint cost allocation disclosures are used to adjust reported expenditures for fund-raising costs. Based on our results, donors appear to ignore the effects of allocating joint costs. Although current accounting standards limit the availability of an accounting method commonly used to manage financial results, it appears that the opportunity for not-for-profit managers to use joint cost allocations to manage ratios and influence donors remains.


2018 ◽  
Vol 4 (Supplement 2) ◽  
pp. 250s-250s
Author(s):  
N. Tasnim

Background and context: Aparajita Society Against Cancer is a not-for-profit 100% volunteer-based organization run by cancer survivors in Bangladesh. Aparajita provides moral, psychological, and financial supports and connects cancer patients and their families with appropriate treatment facilities. Aparajita also runs awareness and educational campaigns and screening camos for early detection. Funding always remains a critical problem in conducting its activities. Though traditional fund raising through donations remain an important means, Aparajita explored other ways of funding its activities. Aim: The aim is to build win–win partnerships with like-minded organizations to secure funding for Aparajita´s activities. Strategy/Tactics: Aparajita recognized that providing due credit to like-minded partner organizations can encourage viable partnerships to share costs, which can reduce cost of funding by Aparajita. Aparajita identified Rotary Clubs as potential partners for jointly organizing events as they are also engaged in community service and not having much activities in this area. Two of its members are Rotarians, who helped in connecting Aparajita with Rotary Clubs. Program process: Aparajita shared its activities, successes, impacts and proposed activities with 1 of the Rotary Clubs and explained our proposed mode of collaborations, including sharing of costs and impacts created by each. Then we worked out a budget and often provided the lead role to Rotary Club in organizing and requesting other clubs to join. Costs and returns: Aparajita greatly reduced its own share of costs while improving the physical targets and qualitative achievements. What was learned: We learnt that establishing partnerships in jointly organizing activities can reduce pressure on funds otherwise raised through donations. We can achieve more and increase the number of volunteers. This is very much sustainable.


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