Fundraising in the Digital Era: Legitimacy, Social Network, and Political Ties Matter in China

Abstract

Development in information technology enables nonprofit organizations to reach more potential donors in a fast and affordable way. To help nonprofits form evidence-based strategies that suit the digital era, we conducted a study on a random sample of 400 Chinese foundations, investigating to what extent organizational legitimacy, network, and political ties influence their ability to attract donation. Results show that in terms of legitimacy, comparing to the past, organizations need to disclose additional information beyond what is required by the government to foster a trusting relationship. In terms of network, online networking can not only bring in online donations but also potentially increase offline donations. In terms of political ties, implicit political ties are beneficial to the organization, whereas explicit political ties may have negative influences.