Abstract
Many nonprofits encourage or require their boards to give, using board giving as a signal of governance commitment to boost external donations. However, nonprofit boards are uncertain about whether their giving really is necessary and effective for improving external fundraising. This exploratory study uses a longitudinal sample and draws on signaling theory and the crowding-in hypothesis to predict whether, and under what conditions, board giving leads to external donations for arts-related nonprofits. The results indicate a positive relationship between board giving and nonprofit external donations. Moreover, the results show that the positive effect of board giving is more pronounced in commercial nonprofits and that corporate donors react to board giving more positively than foundation and individual donors. These results suggest that the use of board giving as a fundraising strategy would be the most effective when commercial, arts-related nonprofits ask corporate donors for donations.
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