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Global Impact: An Examination of the Best Practices in Fundraising for International
Development-Based Nonprofit Organizations in the United States
A Senior Project
presented to
the Faculty of the Recreation, Parks, & Tourism Administration Department
California Polytechnic State University, San Luis Obispo
In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science
by
Gina Giannosa
June, 2015
© 2015 Gina Giannosa
ii
ABSTRACT
GLOBAL IMPACT: AN EXAMINATION OF THE BEST PRACTICES IN
FUNDRAISING FOR INTERNATIONAL DEVELOPMENT-BASED NONPROFIT
ORGANIZATIONS IN THE UNITED STATES
GINA GIANNOSA
JUNE 2015
Nonprofit organizations operate through the financial support of generous donors and
sponsors. To encourage donor support, nonprofits must engage in various forms of
fundraising. The purpose of this study was to examine the fundraising practices of
selected international development-based nonprofit organizations in the United States.
The researcher studied three different nonprofit organizations and analyzed their websites
and social media sites to determine successful fundraising practices. Data for each
organization was collected using a matrix of categorized questions developed by the
researcher. Through the data, the researcher determined major findings and conclusions
and made recommendations for each of the selected organizations. The researcher also
provided recommendations for future application and studies in the nonprofit field.
Keywords: nonprofit, fundraising, strategy, online, donor, partner
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TABLE OF CONTENTS
PAGE
ABSTRACT ........................................................................................................................ ii!
TABLE OF CONTENTS ................................................................................................... iii!
Chapter 1 INTRODUCTION AND REVIEW OF LITERATURE .................................... 1!
Background of Study ...................................................................................................... 1!
Review of Literature ....................................................................................................... 2!
Purpose of the Study ....................................................................................................... 8!
Research Questions ......................................................................................................... 8!
Chapter 2 METHODS ......................................................................................................... 9!
Description of Organization/s ......................................................................................... 9!
Description of Instrument ............................................................................................. 10!
Description of Procedures ............................................................................................. 11!
Chapter 3 PRESENTATION OF THE RESULTS ........................................................... 13!
Recent Organizational Growth ..................................................................................... 13!
Partner Relationships .................................................................................................... 15!
Online Fundraising Strategies ....................................................................................... 16!
Other Fundraising Strategies ........................................................................................ 19!
Chapter 4 DISCUSSION AND CONCLUSIONS ............................................................ 20!
Summary ....................................................................................................................... 20!
Discussion ..................................................................................................................... 21!
Conclusions ................................................................................................................... 25!
Recommendations ......................................................................................................... 26!
iv
REFERENCES ................................................................................................................. 28!
APPENDIXES .................................................................................................................. 32!
1
Chapter 1
INTRODUCTION AND REVIEW OF LITERATURE
Background of Study
Charity is a familiar concept to people all across the globe. Early foundations of
organized groups purposed for charitable giving or benevolent deeds date back to the
colonial days of the United States (Hammack, 2002). Today, these types of groups are
classified as “nonprofit organizations.” Essentially, nonprofit organizations (NPOs) exist
to provide the public with some sort of benefit. Blackwood, Roeger, and Petiijohn (2012)
determined 2.3 million nonprofit organizations currently operate in the United States
and, in 2010, all registered NPOs collectively accumulated nearly $2.06 trillion in
revenue. Examples of revenue streams for NPOs include general donations, grants, and
program fees.
Nonprofit organizations depend on the revenues generated each year for the
successful and continuous operation of their programs and services. One of the most
effective methods NPOs use to generate monetary support is fundraising. The specific
goals and objectives of an organization determine the fundraising approaches it chooses
to implement. Nonprofit organizations such as Pencils of Promise, charity: water, and
Lifewater International utilize a variety of fundraising strategies in order to support their
international development services and programs. The purpose of this study was to
examine the fundraising practices of selected international development-based nonprofit
organizations in the United States.
2
Review of Literature
Research for this review of literature was conducted at Robert E. Kennedy
Library on the campus of California Polytechnic State University, San Luis Obispo. In
addition to books and other resources, the following online databases were utilized:
ABI/Inform Complete, Academic Source Premier, Business Source Premier, Google
Scholar, JSTOR, and Wiley Online Library. This review of literature is organized into the
following topic areas: motivations for charitable giving, the relationship between
organizations and donors, Web-based fundraising strategies, and fundraising events and
campaigns.
Nonprofit organizations are only able to exist through the help of charitable
giving. Charitable giving is a key player in providing privately funded public goods in
many areas of society (Osili, Hirt, & Raghavan, 2011). Some areas of public goods
affected by charitable giving include educational institutions, youth development
programs, international aid organizations, and religious-affiliated groups. Marx and
Carter (2014) describe charity as “a two-way exchange motivated by benefits to each
party in the exchange - the giver and the beneficiary” (p. 351). Nonprofit organizations
benefit monetarily and promotionally, while donors generally receive more intrinsic
forms of benefits.
There are all different kinds of motivating factors that drive charitable giving.
Bekkers and Wiepking (2011) determined eight mechanisms as the motivating factors
behind philanthropic action and charitable giving: awareness of need, solicitation, costs
and benefits, altruism, reputation, psychological benefits, values, and efficacy (p. 924).
These factors are tangible and intangible, providing internal and external benefits to each
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party in the exchange. Every donor is unique and attracted to NPOs for different reasons.
Therefore, nonprofits’ fundraising practices must be tailored to fit both the needs of the
organization and the donor alike.
One of the major components of fundraising is the relationship between the donor
and the organization. Fundraising is built on developing relationships with donor
constituencies because donors are the most integral part of an organization’s fundraising
success (Owens & Yarbrough, 2015). One way NPOs work to build relationships with
their donors is through donor priority strategies. A donor priority strategy is defined as
the application of various levels of donation associated with additional benefits
dependent on the amount donated (Scherhag & Boenigk, 2013). For example, the
Metropolitan Museum of Art has over ten donation levels, each with their own benefits
packages. In return for their generous contributions, donors receive perks such as: free
admission to special exhibitions, invitations to curator talks, and exclusive dinners
(Scherhag & Boenigk, 2013, p. 444). Though the primary purpose of charitable giving is
to donate to a worthwhile cause, many people feel more connected to and appreciated by
an organization that provides them with some sort of tangible benefit because of their
donation.
The utilization of the Internet is one of the fastest growing trends for fundraising
in the nonprofit sector. Hoefer (2012) discusses affiliate marketing, online donations and
memberships, and information products as three tools for online fundraising success.
Affiliate marketing can be described as a practice where businesses provide rewards to
their affiliates (the NPO) for each website visitor, sale, or customer that navigated the site
because of the affiliate organization’s marketing efforts (Brown, 2008). Nonprofit
4
organizations can begin to implement affiliate marketing strategies by connecting
themselves to a company and promoting certain products that will directly benefit their
target market (Hoefer).
Over the last few years, the amount of funds generated through online giving has
significantly increased. Between 2011 and 2012, funding received through online
donations grew by 14% and many NPOs have increased the overall amount of gifts they
receive by encouraging potential donors to give each month, year, or over some other set
period of time (Grovum & Flandez, 2013). Many organizations allow people to easily
make online donations directly through a link provided on the organization’s webpage or
through email. Young Life, a Christian organization purposed to serve high-school
teenagers, places a high focus on online fundraising strategies. Potential donors can
access the Young Life website through all Web-compatible devices, making it easy for
supporters to navigate the site and keep track of each donation they make (Young Life,
2015). Additionally, Young Life promotes the use of their website by including website
information on all of their promotional materials.
Young Life, like many other nonprofit organizations, uses social media as a
promotional tool and a way to more effectively engage with the public. The ability for
NPOs to implement social media marketing tactics provides them with substantial
opportunities and cutting-edge resources to help their organizations gain a greater
presence in society (Nah & Saxton, 2012). Palmer (2015) listed the most popular sites
used by companies for social media marketing as: Facebook, Twitter, Instagram,
Pinterest, LinkedIn, Snapchat, and YouTube (para. 4). These modern social media
platforms open doors for communication opportunities that drastically differ from
5
traditional organization websites (Lovejoy & Saxton, 2012). Social media is instantly
available virtually anywhere and, literally, accessible in the palm of the user’s hand. The
vast accessibility of social media makes it an extremely smart and strategic way for
nonprofits to provide more information about their organizations to current users and
potential future supporters.
According to Lovejoy and Saxton (2012), the three primary functions of social
media use by nonprofit organizations are to: provide information, foster community, and
call donors to action (p. 337). Providing information essentially means administering
organizational news, such as reports, studies, or highlights from a recent event, to the
general public. Social media can also be used as a social networking tool where
organizations can interact with stakeholders, share ideas, facilitate conversations, and
create an online community between organizations and followers (Lovejoy & Saxton,
2012). Social media combines traditional marketing techniques with new, innovative
approaches. It not only provides open communication between organizations and donors,
but also makes donor-to-donor interactions possible (Mangold & Faulds, 2009). Finally,
social media plays a huge role in evoking action from supporters. Whether the action is to
attend an upcoming event, advocate for the organization’s cause, or make a monetary
donation, nonprofits use social media in this way to get some physical or emotional
support from their followers. Clearly, social media communication has the ability to not
only foster meaningful relationships with supporters, but also build accountability and
trust between organizations and the public (Saxton & Guo, 2011).
Another unique way nonprofit organizations innovatively fundraise is through
events and mass-promoted giving campaigns. One of the most profound and recently
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adopted campaigns is called #GivingTuesday. The global movement occurs on the first
Tuesday after Thanksgiving and has become known as a national day of charitable
giving. The event was created in 2012 by 92nd Street Y of New York in association with
the United Nations Foundation and is a campaign in which people all across the world are
encouraged to give back and make a monetary contribution to a charity of their choosing
(#GivingTuesday, 2014). During the most recent national day of charitable giving, over
296,000 charitable contributions were made, resulting in a total of approximately $45.7
million (Indiana University Lilly Family School of Philanthropy, 2014). Jean Case, co-
founder and CEO of the Case Foundation, stated, “Just as Cyber Monday and Black
Friday are key indicators of consumer sentiment and economic health, this data on
#GivingTuesday can serve as an indicator of the health of our giving economy” (Indiana
University Lilly Family School of Philanthropy, 2014, para. 4). Mass giving campaigns
are essentially online events that quickly generate large sums of money as well as
increase overall organizational awareness.
Fundraising through special events is extremely common in the world of NPOs.
Events can range from casual bike rides to black tie galas. Fundraiser events are a
strategic opportunity for nonprofit organizations to reach out to donors who are motivated
by more than just their desire to support an organization (Webber, 2004). One common
attribute of all nonprofit special events is that participants gain some sort of personal
benefit by engaging in the event. Depending on the participant’s motivations for
attending the event, they can gain both intrinsic and extrinsic benefits, such as making a
generous contribution, feeling a sense of personal pride and accomplishment, or simply
having fun.
7
Nonprofit organizations also utilize information products to attract new donors
and sponsors. Information products can go hand-in-hand with social media strategies.
Older, somewhat outdated examples of information products are books and pamphlets,
and newer products include promotional videos, DVDs, or other digital marketing
materials (Hoefer, 2012). Invisible Children, an organization focused on social justice in
Africa, heavily implemented the use of informational products as a promotional tool
during the height of their operations. Originally, their videos were used as an experiment
to spread awareness about their cause, but in 2012 when their Kony 2012 campaign video
went viral on YouTube, it received 100 million views in just six days and nearly four
million people pledged their support for the cause (Invisible Children, 2014). The impact
of the Kony 2012 video was significant. The video’s unprecedented success allowed
Invisible Children to host a Global Summit in Washington, DC that brought together
international leaders and social justice experts who committed their support to the
organization’s work. The organization’s spike in support and additional funding that
resulted from their use of informational products allowed them to further expand their
programs in East and Central Africa.
Though many nonprofits still utilize traditional models of fundraising, the
majority of organizations have moved into Web-based fundraising practices. Primary
strategies of online fundraising include affiliate marketing and marketing through
information products, in addition to general online giving and social media campaigns.
The most important aspect of fundraising for NPOs to remember is the importance of the
relationship between the organization and their donors. Nonprofit organizations greatly
depend on gaining and sustaining the public’s trust (Bekkers, 2003). Whether or not an
8
organization implements donor priority strategies, they should focus on fostering
communication and trustworthy ties between themselves and the people or business
whose support helps keep the organization alive.
Purpose of the Study
The purpose of this study was to examine the fundraising practices of selected
international development-based nonprofit organizations in the United States.
Research Questions
This study attempted to answer the following research questions:
1. What online and offline fundraising techniques are currently implemented by
selected nonprofit organizations?
2. What role does social media play in terms of fundraising for selected
nonprofit organizations?
3. How effective are the fundraising practices of selected nonprofit organizations
in terms of organizational growth and partnership development?
4. How do fundraising practices reflect the mission, vision, and values of
selected nonprofit organizations?
9
Chapter 2
METHODS
The purpose of this study was to examine the fundraising practices of selected
international development-based nonprofit organizations in the United States. This
chapter includes the following sections: description of organization/s, description of
instrument, and description of procedures.
Description of Organization/s
A comparative analysis was conducted on Pencils of Promise (PoP), charity:
water, and Lifewater International. Each organization studied is a registered 501(c)(3)
nonprofit organization with the International Revenue Service (IRS). Pencils of Promise
(2015) was founded by Brown University graduate, Adam Braun, in 2008. With its for-
purpose approach, PoP exists to create schools, programs, and global communities
around the common goal of education for all. The organization is headquartered in New
York City and additionally operates in Ghana, Guatemala, and Laos. Pencils of Promise
consists of 86 leadership and staff members, 11 members on the Board of Directors, and
an Advisory Board of 21. The organization’s main programs include school builds,
teacher training, scholarship, and WASH (water, sanitation, hygiene) instruction.
Also based out of New York City is charity: water. The organization’s mission is
to bring clean and safe drinking water to people in developing nations (charity: water,
2015). Since the organization’s founding in 2006, charity: water has completed 16,138
water projects in 24 different countries across the globe. The organization utilizes nine
10
different water project solutions intended to help end the water crisis in developing
countries. Types of projects charity: water has completed include well builds, rainwater
catchment systems, latrines, and water purification systems. Poverty, political stability,
and water scarcity are the determining factors in deciding where to develop new projects
and what solutions to implement. Founder Scott Harrison leads a team of 69 staff
members and is additionally supported by a Board of Directors comprised of eight
individuals.
Lifewater International (2015) is a Christian organization committed to ending the
global water and sanitation crisis and works to provide children and families with safe
water, sanitation, and hygiene. Lifewater was established in 1977 by Bill Ashe and
operates out of San Luis Obispo, California. The Lifewater team is made up of 16 staff
members, a Board of Directors of 11, and an Advisory Committee of four. Primarily,
Lifewater builds wells in communities throughout Africa, Asia, and the Americas,
providing communities with sanitary drinking water in a safe, local environment. The
organization believes people are the most effective, scalable, and sustainable investment
for change, thus their programs are highly focused on creating lasting impact in the
communities they work with.
Description of Instrument
The instrument utilized in this study was a best practices matrix developed by the
researcher (see Appendix A). Information from the Review of Literature was used to
develop the instrument. The instrument consisted of a categorized list of questions used
to compare each nonprofit organization’s fundraising practices and the effectiveness of
11
those practices. A pilot study was conducted on May 6, 2015 to test the strength of the
instrument. The pilot study focused on analyzing the fundraising strategies of one other
international development-based nonprofit organization. After performing the pilot study,
the researcher modified the instrument by removing and adding new questions to the
original list, rewording some of the preexisting questions, rearranging the order of
questions, and adding a “notes” section at the end. The final instrument included 11
questions categorized in three areas: organizational and programmatic growth, social
media presence, and on- and offline fundraising strategies. The data collected through the
instrument produced useful results for further analysis.
Description of Procedures
A comparative analysis was conducted on Pencils of Promise, charity: water, and
Lifewater International. The instrument utilized in this study was a best practices matrix
developed by the researcher. The research for this study started on May 6, 2015 and
ended on May 20, 2015. The researcher used Google search engine in order to find each
organization’s website. After landing on each organization’s homepage, the researcher
analyzed the homepage, took notes, and proceeded to navigate every other section of the
website. The researcher primarily gathered information from the About Us and Programs
tabs on each website. Additional information was collected from the Pencils of Promise
Results and Innovation page, the Why Water? page on the charity: water website, and the
Response, Strategy, and Impact tabs on the Lifewater International webpage. The
researcher also analyzed all of the social media sites associated with the organizations,
including each organization’s Facebook, Twitter, Instagram, Google Plus, YouTube, and
12
Vimeo sites. In addition, the researcher analyzed online blogs for both Pencils of Promise
and charity: water. Data collected from the websites, social media pages, and online blogs
was both qualitative and quantitative and meticulously recorded by the researcher. After
recording the data, the researcher organized the data into an extensive analysis where the
effectiveness of each organization’s fundraising strategies was determined.
13
Chapter 3
PRESENTATION OF THE RESULTS
The purpose of this study was to examine the fundraising practices of selected
international development-based nonprofit organizations in the United States. A best
practices approach was utilized to examine Pencils of Promise, charity: water, and
Lifewater International. This chapter includes the following sections: recent
organizational growth, partner relationships, online fundraising strategies, and other
fundraising strategies.
Recent Organizational Growth
Pencils of Promise, charity: water, and Lifewater International have all
experienced recent organizational growth through the expansion of their current
programs, creating new programs, increasing the number of countries and regions where
their programs operate, as well as generating more public awareness about their
organizations. Since its founding in 2009, Pencils of Promise (PoP) has expanded from
working in one partner country to now operating in a total of four countries on three
different continents. Within the last three years, PoP has doubled their number of publicly
funded programs. The four educational programs PoP operates are school builds, student
scholarships, teacher training, and water, sanitation, and hygiene (WASH) training.
Pencils of Promise is currently expanding each of their educational programs in Laos,
Guatemala, and Ghana, but has stopped current expansion of all programs in Nicaragua.
14
Similarly to PoP, Lifewater International has experienced continuous
programmatic expansion since their founding. Most recently, in 2012 Lifewater launched
a new three-year regional program, in which the organization implements a water project
in a developing country, then spends three years developing the project and teaching the
local partners and community members how to sustain the project on their own.
Lifewater currently has six open water projects throughout Africa and two in Asia.
As with Lifewater International, charity: water also operates multiple projects at
one time in various locations across the globe. Since 2006, charity: water has completed
over 16,000 water projects throughout Asia, Africa, and Central and South America.
Within the last five years, the organization has developed water projects in nine different
countries on each of the aforementioned continents. The organization works to fund nine
different types of water projects throughout these countries, including hand-dug wells,
drilled wells, rainwater catchments, gravity-fed systems, piped systems, water
purification systems, BioSand filters, spring protections, and latrines. Each project
charity: water implements varies based on the specific needs of the region where the
project is happening. Pencils of Promise and Lifewater International also use a needs-
based analysis when determining where to begin new programs or projects.
Growth in organizational awareness predominantly comes from various forms of
media and press. Pencils of Promise, charity: water, and Lifewater International have
made recent headlines in multiple national newspapers, magazines, and websites. The
websites of both Pencils of Promise and charity: water provide extensive lists of print and
web media that have featured them, including the Huffington Post, ABC News, the New
York Times, People Magazine, the Wall Street Journal, and the Harvard Business
15
Review. In addition to formal press mediums, these three organizations have also
developed strong online presences simply through the existence of their websites and
social media accounts.
Partner Relationships
One of the key traits about nonprofit organizations is the fact that each and every
donor or supporter is considered a partner of the organization. Pencils of Promise,
charity: water, and Lifewater International each partner with individuals, large
commercial corporations, and other nonprofits in order to further the operations of their
programs. Additionally, these organizations create partnerships with local residents and
community members of the international regions their programs operate in.
Pencils of Promise has partnerships with nearly 40 companies and receives
additional support from private donors. The organization’s partners and sponsors
contribute by kick-starting fundraising campaigns, making in-kind donations to PoP, and
promoting the organization to their own customers. Additionally, the overhead and
operating costs Pencils of Promise incurs each year are fully funded by generous private
donors. Therefore, 100% of public donations go directly to the further implementation
and expansion of PoP educational programs. Some of their most influential partners
include Chegg, Lokai, and 1-800-flowers.
Charity: water also receives full private funding for operational costs, allowing
100% of funds donated by the public to go straight into the organization’s water projects.
The organization has collaborated with nearly 50 corporate sponsors who share the same
vision as charity: water - to bring clean and safe drinking water to each person on earth.
16
Partners are chosen based on expertise and experience with water projects, as well as
local knowledge about the community where projects are implemented. The organization
places a high focus on the partner-organization relationship and works to keep the lines of
communication open and clear to combat any problems that might arise.
Furthermore, Lifewater International strives to partner with organizations that
share the same faith-based beliefs and values in addition to their desire to implement
water projects throughout the world. Lifewater receives the majority of their funding
from individual donors, but also receives generous donations from foundations, churches,
government organizations, and schools. Their partners in the local communities where
they work are well-known community leaders who help the organization engage with
families in the local communities and teach them about Lifewater projects. In the past,
Lifewater has worked with other nonprofit organizations including the Millennium Water
Alliance, World Vision, and charity: water, to implement water projects.
Online Fundraising Strategies
Each one of the selected nonprofit organizations implements multiple online
fundraising strategies. First and foremost, each organization’s website includes a link to
the donations page that is easily accessible through the website homepage. Pencils of
Promise, charity: water, and Lifewater International all have “Donate” tabs located at the
top left or right of each of their website pages. However, the Pencils of Promise site also
includes a link to the donations page as the first content of the website homepage and an
additional donations link is located at the bottom of every single page of the PoP website.
A breakdown of suggested donation amounts was included on each site’s donations page.
17
The suggested donation amounts included descriptions of how each amount would
specifically be used by the organization.
Additionally, each of the selected organizations had a separate option for people
to become monthly versus one-time donors to the organization. Pencils of Promise
recently launched Passport, a monthly giving program with member benefits including
quarterly progress updates with stories from PoP volunteers in the field, an exclusive
welcome gift to the Passport program, a surprise souvenir at the end of the year, and
photos and videos of the children participating in PoP programs supported by their
donations. In addition, the first 1,000 members of the Passport program will have their
first monthly donation to PoP matched by a generous, private donor. Donations received
from Passport members go to continuing further expansion of PoP programs.
Similarly, charity: water implemented their monthly giving program called
Pipeline. Funds generated through Pipeline are specifically allotted to sustain completed
programs in various countries. Pipeline and Passport are both specifically for donors who
would like to make a monthly contribution to the organization. Lifewater International
also encourages monthly gifts. Though their monthly giving program does not have a
defined title, Lifewater International described monthly donors as “Water Heroes.”
Additionally, social media is one huge way the selected organizations generally
promote their organizations and, more specifically, their fundraising efforts. Each of the
selected organizations is primarily active on both Facebook and Twitter. Pencils of
Promise and Lifewater International are also active on Instagram, YouTube, and Google
Plus. Lifewater International utilizes Flickr as a photo gallery, PoP uses Vimeo for
promotional videos, and charity: water and PoP have frequently updated online blogs.
18
Pencils of Promise and charity: water do not heavily use social media as a way to
promote fundraising, but more so just their organizations in general. In contrast, almost
every single one of Lifewater International’s social media posts encourage followers to
navigate the Lifewater website and call followers to make a donation to the organization.
Both PoP and charity: water focus more on showing a photo of someone in the field
where their programs operate with a caption describing the picture, but no direct
connection to making a donation to their organizations.
In addition to social media, one of the most influential ways these organizations
fundraise is through online giving campaigns. Pencils of Promise, charity: water, and
Lifewater International each have annual and ongoing giving campaigns. Pencils of
Promise has three primary giving campaigns: Season of Promise, Back to School, and
No. 1 Teacher. Each of these campaigns is implemented at a different time of the year
and individuals, groups, or corporate sponsors make donations and heavily promote the
organization during campaign seasons.
One campaign that heavily relies on the help of individual donors is charity:
water’s Birthday Project, in which supporters ask friends and family to make a charitable
contribution to the organization in lieu of birthday presents. The Birthday Project is
ongoing, and anyone is able to participate. Lifewater International also has an ongoing
giving program known as Activewater. With this campaign, supporters walk, run, bike, or
hike to raise money for Lifewater International. Donors are able to start fundraisers
individually or as groups, and new supporters can access the Lifewater website at any
time to make additional donations to those who have started fundraising campaigns.
19
One distinct factor about charity: water is it has an online store on its website. The
store includes products ranging from apparel, to reusable water bottles and other
drinkware, to bicycles. The organization produces merchandise in house, as well as
through different partner organizations. Every penny earned through the sale of charity:
water merchandise goes directly toward funding clean water projects.
Other Fundraising Strategies
As previously mentioned, the great majority of each organization’s fundraising
practices are through online giving strategies. However, all three organizations engage in
large events as offline fundraising strategies. Each year, Pencils of Promise hosts two
massive events in New York City: the White Party in the spring, and a black-tie gala in
the fall. The annual gala of 2014 included a cocktail reception, seated dinner, honoree
remarks from celebrities and philanthropists alike, a live auction, and an after party
celebration. Pencils of Promise raised over $2 million through the 2014 gala. Every
December, charity: water hosts an annual black-tie event known as charity: ball. In 2013,
charity: water hosted the live-auction event in Brooklyn and raised over $4 million. On a
much smaller scale, Lifewater International hosted its second annual Walk 4 Water in
downtown San Luis Obispo, California in 2015. For every $40 dollars raised at the event,
one person in a developing country would be able to receive clean drinking water for life.
20
Chapter 4
DISCUSSION AND CONCLUSIONS
Nonprofit organizations heavily impact both social and economic facets of global
society through the implementation of their respective programs and services. In order to
support and successfully operate these programs and services, nonprofits must implement
strategic fundraising practices. The effectiveness of an organization’s fundraising
practices can be measured by analyzing organizational growth and partner development.
This concluding chapter will include the following: a summary of the study, a discussion
of the findings, limitations, conclusions based on research questions, and implications of
the findings, and recommendations for future research.
Summary
The purpose of this study was to examine the fundraising practices of selected
international development-based nonprofit organizations (NPOs) in the United States.
The selected organizations were Pencils of Promise (PoP), charity: water, and Lifewater
International. In order to better understand the history of NPOs and fundraising, the
researcher studied motivations behind charitable giving and the relationship between
nonprofit organizations and their donors, particularly donor priority strategies. In
addition, the researcher analyzed various fundraising strategies of nonprofit
organizations, including Web-based strategies, special events, and mass giving
campaigns.
21
After thorough exploration of the topic, the researcher developed the methods for
the study. A best practices matrix of 11 categorized questions was developed and used to
analyze each of the three selected NPOs. The researcher studied each organization’s
website, social media sites, and online blogs, using the data collected to devise the study
results.
The results of the study showed that each of the selected nonprofit organizations
have experienced recent organizational growth in terms of program expansion, overall
organizational awareness, and partner development. Additionally, the study revealed that
selected NPOs focus most of their fundraising efforts on Web-based strategies, such as
giving campaigns and the use of social media. Furthermore, the results showed how
nonprofit organizations integrate their mission, vision, and values through various
fundraising practices.
Discussion
Pencils of Promise, charity: water, and Lifewater International each have well-
established partnerships with diverse parties including corporate sponsors, individual and
private donors, other nonprofit organizations, and community leaders in the countries
where their programs operate. Pencils of Promise and charity: water both recognize the
importance of implementing donor priority strategies to strengthen their relationships
with partners and increase fundraising effectiveness. These findings support previous
research that determined fostering the relationship between the donor and the
organization as the most important component of fundraising success for nonprofit
organizations (Owens & Yarbrough, 2015). Through this study, the researcher
22
acknowledged that NPOs should place the highest emphasis on maintaining positive,
beneficial relationships between their organizations and those who financially support
their work. By implementing donor priority strategies, donors become personally
attached to organizations, have an increased desire to continue donating and make larger
donations, and are more prone to share the work of the organization with others. It is
recommended that nonprofit organizations develop donor priority strategies or donor
membership programs with benefits that meet donors’ needs and reflect donors’
motivations for giving to the organization. It is also recommended that NPOs place a high
emphasis on creating strong bonds between the organization and the local community in
which the organization works in order to promote trustworthy relationships and
sustainability of organizational programs.
Another key component to successful fundraising is the utilization of the Internet.
Each of the organizations studied targets their audience with different Web-based
fundraising strategies. The results showed that each of the organizations have “Donate
Now” links available on the homepages of their websites. These general donation links
serve as a quick and easy way for donors to give financially to the organizations.
Additionally, each of the selected organizations has a strong social media presence. Of
the selected organizations, Lifewater International best utilized social media as a
fundraising tool. Lifewater’s social media posts included a call to action by directly
asking followers to donate to their organization. Their use of social media for fundraising
supports previous research that listed calling donors to action as one of the three key
functions of social media use by nonprofit organizations (Lovejoy & Saxton, 2012). All
three organizations also host both continuous and seasonal online giving campaigns
23
throughout the year. While seasonal campaigns generate mass amounts of money during
a short time period, a continuous giving campaign allows supporters to join the campaign
at any time they desire, making it a highly effective strategy in developing year-round
organizational support. These findings support the idea that creating a powerful online
presence is a vital aspect of successful fundraising. The Internet is an easily accessible,
fast, and simple way for supporters to make a donation and also stay up to date on
organizational expansion, change, and fundraising success. It is recommended that
organizations tailor their social media posts to evoke action from followers by explicitly
asking for a donation. Additionally, nonprofit organizations should host continuous
online giving campaigns to encourage individual donor participation year-round.
Outside of online fundraising, each of the selected NPOs hosts at least one annual
large-scale special event. The primary difference between each organization’s events is
the target participant audience. The annual galas of PoP and charity: water focus on
attracting deep-pocket attendees, such as celebrities and well-known philanthropists,
whereas Lifewater International’s Walk 4 Water is tailored for participants of any age or
socioeconomic status. Also, the annual Lifewater event parallels their continuous online
giving campaign, Activewater. Both the event and campaign highlight the idea of healthy
living, one of Lifewater’s core program values. Therefore, Lifewater successfully reflects
their mission, vision, and values through the implementation of their various fundraising
practices. These findings support previous research that special events are an effective
fundraising practice because they get donors physically involved in the activities of the
organization and provide them with some sort of tangible benefit for their participation
(Webber, 2004). The researcher’s findings support the idea that special events for NPOs
24
can range from fancy, high-production ordeals to casual, laid-back events. The researcher
suggests nonprofit organizations host at least two annual special events per year that
appropriately reflect their mission, vision, and values.
Throughout the course of the study, some limitations were recognized. To collect
data, the researcher was restricted to analyzing organization websites and social media
sites only. No personal interviews with field experts or organization employees were
conducted for this study. Additionally, the researcher had a short two-week time period to
gather results, forcing the researcher to analyze a small, concentrated amount of data.
Finally, the researcher conducted a comparative analysis study of only three nonprofit
organizations. The researcher could have made more innovative findings if the scope of
the study was widened to a trends analysis on various types of nonprofit organizations.
Regardless of these limitations, the researcher still developed relevant conclusions from
the findings.
This study led the researcher to conclude that international development-based
nonprofit organizations in the United States implement a variety of fundraising strategies
for the success of their programs. Prominent fundraising strategies include online
donations and giving campaigns, monthly donor membership programs, encouraging
donations through social media, and hosting special events purposed for fundraising. It is
essential for NPOs to have a strong online presence through websites and social media
accounts. Additionally, nonprofits must keep their partners at the focus of their
fundraising efforts, making donors’ needs a priority, and working to consistently foster
positive partner relationships. Pencils of Promise, charity: water, and Lifewater
International each implement on- and offline fundraising strategies. The organizations
25
tailor those strategies to attract new and current donors and also strive to reflect their
organization’s mission, vision, and values through their fundraising practices. Overall,
the research gathered through this study supports previous conclusions that nonprofit
organizations primarily utilize online and donor priority fundraising strategies, but they
continue to employ offline fundraising practices as well.
Conclusions
Based on the findings of this study, the following conclusions are drawn:
1. The fundraising practices of selected international development-based
nonprofit organizations include general online giving, monthly giving
programs, ongoing and seasonal giving campaigns, fundraising promotions
through social media posts, and annual special events.
2. Lifewater International successfully uses social media as a fundraising
practice by developing posts that call followers to action and explicitly make a
request for donation.
3. Pencils of Promise and charity: water are able to develop strong relationships
with their partners and experience significant organizational growth by
making their donors a priority and providing supporters with tangible benefits
for donating.
4. Lifewater International reflects the mission, vision, and values of their
organization by focusing their online continuous giving campaign and annual
special event on one of their core organizational values.
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Recommendations
Based on the conclusions of this study, the following recommendations are made:
1. To generate more funds through social media, Pencils of Promise and charity:
water should include a call to action, such as a request for donation, in their
social media posts.
2. Lifewater International and charity: water should host more than one annual
special event per year to reach a wider audience, increase organizational
awareness, and raise additional funds for programs.
3. In addition to their seasonal online giving campaigns, Pencils of Promise
should develop a continuous campaign that would allow donors to join all
throughout the year.
4. Organizations should continue implementing special events and other
fundraising strategies that effectively communicate the mission, vision, and
values of their organization to the public.
5. Nonprofit organizations should implement donor priority strategies that fit the
needs and motivations of supporters and provide intrinsic and extrinsic
benefits to donors.
6. All nonprofit organizations should strive to maintain open communication and
transparency with partners to build trustworthy relationships and strengthen
partners’ loyalty to the organization.
7. For further best practices analysis, researchers should perform an in depth
study specifically focused on Web-based fundraising practices for various
types of nonprofit organizations.
27
8. For future studies, researchers should consider conducting a trends analysis on
multiple nonprofit organizations to discover noteworthy differences in
fundraising strategies.
28
REFERENCES
29
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APPENDIXES
33
Appendix A
Instrument
34
Organizational and Programmatic Growth:
1. Have any new programs been added to the organization’s spectrum over the last 5
years?
2. Has the number of countries the organization serves increased over the last 5
years? If so, to what number?
3. Has the organization developed any new partnerships or sponsorships within the
last 5 years?
4. How do the organization’s partners and corporate sponsors contribute to the
fundraising goals of the organization?
Social Media Presence and Fundraising:
5. What social media platforms is the organization active on?
6. How does the organization use social media to promote general fundraising,
events, and giving campaigns?
7. What else does the organization use social media used for?
On- and Offline Fundraising Strategies:
8. Does the organization emphasize online, offline, or hybrid fundraising
approaches?
9. What online fundraising strategies does the organization implement?
10. What offline fundraising strategies does the organization implement?
11. Is there a direct “Donate Now” link available through the website? If so, is it
instantly visible to the website viewer? If not, where is the link located on the
webpage?
NOTES:
