Do Donors Care About Results? An Analysis of Nonprofit Arts and Cultural Organizations. Issue 4 (1st June 2016)

• Record Type: Journal Article
• Authors: Charles, Cleopatra; Kim, Mirae
• Is Part Of: Public performance & management review. Volume 39:Issue 4(2016)
• Page Start: 864
• Page End: 884
• Publication Date: 2016-06-01
• Subjects: donations -- fundraising -- nonprofit -- performance outcomes; Civil service -- Labor productivity -- Periodicals; Civil service -- Labor productivity -- United States -- Periodicals; Government productivity -- Periodicals; Government productivity -- United States -- Periodicals; Public administration -- Periodicals; Public administration -- United States -- Periodicals; Civil service -- Labor productivity; Government productivity; Public administration; United States; Periodicals; 351.05
• DOI: 10.1080/15309576.2015.1137775
• Languages: English
• ISSNs: 1530-9576

Abstract

ABSTRACT: Nonprofits are facing increasing pressure to measure and demonstrate their performance outcomes. However, we know little about the relationship between a nonprofit's performance and its ability to attract donations. Do donors value an organization's performance information when making giving decisions? We find that organizations that are more successful (i.e., attract larger audiences to their programs and more visitors to their websites) tend to receive fewer contributions. Despite a growing culture of performance measurement, the empirical evidence does not provide strong support of its relevance among donors. A plausible theoretical reasoning is that better performance outcomes create the image of success, making organizations look less needy. These results call for more research on the link between performance outcomes and philanthropy.