Corporate sponsorships may hurt nonprofits: Understanding their effects on charitable giving

Abstract

While prior research suggests that corporate sponsorship can positively affect consumers' perceptions of sponsors, little research to date has investigated the impact of such sponsorships on an individual's willingness to support nonprofits. This paper investigates the psychological processes that underlie whether and how corporate sponsorship impacts an individual's willingness to support nonprofit organizations and suggests that unintended negative outcomes may emerge. Specifically, results from five studies suggest that exposure to sponsorship information can reduce prospective donors' willingness to support a nonprofit because people believe that their individual contributions will matter less. In addition, this research identifies a potential mechanism (i.e., donor-company identification) that can mitigate these negative effects.