The Impact of Financial Equity Perception of Non-profit Organization Donors on Donation Willingness

Abstract

The nonprofit organizations are playing a more and more important role in the economic and social development in recent years. However, they are faced with kinds of financial problems such as fraud, corruption, misappropriation of funds and a lack of transparency, seriously bruising the donating enthusiasm of donators and damaging the rights and interests of investors. As a financial part of perceived organization justice, the financial fairness perception of donors is a subject feeling, has a certain effect on the amount and frequency of donation, and is the key factor for many nonprofit organizations to raise enough funds. Through a survey of NPO donors, this paper uses structural equation analysis to show that financial results fairness directly affects the personal donation willingness to NPOs, financial procedural justice does not have significantly direct effect and has indirect influence on the donation willingness through financial results fairness, and financial information fairness has direct influence and indirect influence through financial procedural fairness and financial results fairness on donation willingness. Therefore the nonprofit organizations should arrange funds use reasonably according to the investors’ willingness, improve the efficiency of funds use, disclose financial information in time, thereby improving financial fairness perception, to raise more funds by the rise in individual donating willingness.