Applying relationship management theory to the fundraising process for individual donors

Abstract

PurposeThe purpose of this paper is to measure the relationships non‐profit organisations develop with their annual giving and major gift donors and to compare the differences between the giving levels.Design/methodology/approachA web‐based survey of individual donors (n=120) to a non‐profit healthcare organisation evaluated their relationships with the organisation using Hon and Grunig's four dimensions of organisation‐public relationships.FindingsTo explore the dynamics of the fundraising process, donors were categorised into two different schema. First, donors were classified as either major gift donors or annual giving donors. With this classification, major gift donors were more likely to have stronger feelings of trust, satisfaction, commitment, and control mutuality with the organisation than annual gift donors did. The second classification divided the donors who have made multiple contributions to the organisation and those who had only made one donation at the time of the study. This study found that donors who gave multiple times to an organisation evaluated the relationship stronger than one‐time donors. Finally, these dimensions were also able to predict past giving behaviour 91 per cent of the time for the participants in this study.Research limitations/implicationsThe findings strengthen the bridge between public relations and fundraising. Additionally, they further validate the organisation‐public relationship measures created by Hon and Grunig, and they demonstrate the indices' ability to predict behaviour.Practical implicationsThe findings stress the importance of donor cultivation within the non‐profit organisation‐donor relationship particularly since the number of non‐profit organisations is rapidly growing and competing for donations. Additionally, the results demonstrate the growing importance of demonstrating financial and social accountability.Originality/valueThe study extends the growing organisation‐public relationship paradigm into a specialisation of public relations that is rarely studied from a social scientific perspective. This study strengthens the reliability and validity of Hon and Grunig's variables as well as strengthening the connection between public relations and fundraising.