Donation Behavior

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VU University 2011-2012
VU University 2011-2012

Donation Behaviour
Noortje Vlek 2500825, Danny Kornman 2500148, Nicole Prince 2163470 Business Research Methods IBA1.04

14th of October 2010
Teacher; Maria Aladjem

Table of Contents
1. Introduction and problem statement3
2. Hypothesis Development4
2.1 Personal link to the cause and intention to donate4
2.2 Good brand personality of a non-profit organization and intention to donate4
2.3 Income in relation to the intention to donate5
3. Method6
3.1 Sample & Procedure6
3.2 Measurement instruments6
3.3 Statistical analyses7
4. Results8
4.1 Descriptive statistics8
4.2 A personal link to the cause has a positive effect on the intention to donate. (hypothesis 1)9
4.3 A good brand personality of a non-profit organization has a positive effect on the intention to donate. (hypothesis 2)9
4.4 People with higher income are more likely to donate than people with lower income. (hypothesis 3)9
5. Conclusion and Discussion11
5.1 Conclusions11
5.2 Shortcomings and future research11
5.3 Theoretical implications12
5.4 Practical implications12

1. Introduction and problem statement
Nonprofit organizations are providing many critical services (e.g. culture activities, environmental issues, education, healthcare) since the 16th century (Venable, Rose, Bush & Gilbert, 2005). But in the last couple of decades Non-profit organizations are facing a lot of difficulties. Government has decided to reduce costs and therefore a significant reduction in governmental funding of donation programs has been made. (Venable, Rose, Bush & Gilbert, 2005) For instance, in England, government has decided to cut in charity funding. Non-profit sector in England will receive £110m less this year. Government regulations are not the only difficulty non-profit organizations have to deal with. Due to the economic crisis, the donations of non-profit organizations are decreasing. Only 12% of the non-profit organizations in the United States of America expect to run above the break-even point this year. Non-profit organizations that think they are able to cover their operating expenses is only 16 percent in both 2009 and 2010. People are saving rather than spending their money. The first cost they cut is giving money to charity. This is why the economy is slowly recovering. But at the same time the number of volunteers is increasing. Number of non-profit organizations has shown an explicit growth. In 1940 there were only 12.500 non-profit organizations, in the United States of America. Today there are over 1,500,000 non-profit organizations registered. This is an increase of 12,000 %. Which lead to much more competition in the non-profit organizations sector. Therefore non-profit organizations are receiving less money.

If we sum up all the above we come to following research question: What are the factors that have an effect on the intention to donate?

2. Hypothesis Development
2.1 Personal link to the cause and intention to donate

To convince people to donate to a charity, it is important for non-profit organizations to understand that people who have a link to the purpose of an organization are more likely to help them realizing their goals. Previous studies have shown that when an individual has a personal link to the goal of a non-profit organization, he or she will probably be more likely to donate to this organization (Sargeant & Woodlife, 2007) E.g. If someone has just been cured of cancer, this person knows how it is feels how it is to go through such an experience and would be more likely to donate to an organization that does research on a cure for this disease, like the American Cancer Society (ACS). The person donating doesn’t only do so because he/she has been told what good it would do for others, but mainly because this person has gone true the same experience as...
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