Words are important: Adding the adjective ‘For-profit’ to the term ‘Social Enterprise’ affects intentions to donate
Abstract
As nonprofit organizations consider launching social enterprise ventures, it is important to continue the investigation of how communication about these ventures affects individual donation decisions. Non-profits cannot successfully seed businesses among the poor and reduce poverty rates if they cannot fund raise. Utilizing a choice-based conjoint survey of donors from four nonprofit organizations, a sample of 191 participants indicated that a nonprofit organization’s administrative efficiency was the most important attribute when choosing between donations. However, attributes concerning the venture itself (the profitability of the venture, the venture’s location, the entrepreneurial competence of those starting the venture, and terms used to describe the venture) were all significantly more important to donors than the age of the nonprofit organization launching the venture. These findings extend previous research studies.
References
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Choi, N., & Majumdar, S. (2014). Social entrepreneurship as an essentially contested concept: Opening a new avenue for systematic future research. Journal of Business Venturing, 29(3), 363-376. doi:10.1016/j.jbusvent.2013.05.001
Clarke, M., & Ware, V. (2015). Understanding faith-based organizations: How FBOs are contrasted with NGOs in international development literature. Progress in Development Studies, 15(1), 37-48. doi:10.1177/1464993414546979
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Feiler, S., Wicker, P., & Breuer, C. (2015). How to raise voluntary giving for nonprofit sports clubs: An analysis of factors influencing donations. Voluntas, 26(4), 1219-1239. doi:10.1007/s11266-014-9489-3
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Frumkin, P., & Kim, M. (2001). Strategic positioning and the financing of nonprofit organizations: Is efficiency rewarded in the contributions marketplace? Public Administration Review, 61(3), 266-275. doi:10.1111/0033-3352.00029
Giving-USA. (2015). Giving USA 2015 report highlights. Indianapolis, IN: Lilly Family School of Philanthropy.
Glänzel, G., & Scheuerle, T. (2015). Social impact investing in Germany: Current impediments from investors’ and social entrepreneurs’ perspectives. Voluntas. doi:10.1007/s11266-015-9621-z
Grizzle, C. (2015). Efficiency, stability and the decision to give to nonprofit arts and cultural organizations in the United States. International Journal of Nonprofit & Voluntary Sector Marketing, 20(3), 226-237. doi:10.1002/nvsm.1521
Habersetzer, A. (2016). Spinoff dynamics beyond clusters: pre-entry experience and firm survival in peripheral regions. Entrepreneurship & Regional Development, 28(9-10), 791-812.
Helms, S. E., & Thornton, J. P. (2012). The influence of religiosity on charitable behavior: A COPPS investigation. Journal of Socio-Economics, 41, 373-383. doi:10.1016/j.socec.2012.04.003
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Heyes, A., & Martin, S. (2015). NGO mission design. Journal of Economic Behavior and Organization, 119, 197-210. doi:10.1016/j.jebo.2015.08.007
Isaksen, A. (2016). Cluster emergence: combining pre-existing conditions and triggering factors. Entrepreneurship & Regional Development, 28(9-10), 704-723.
Kinsbergen, S., & Tolsma, J. (2013). Explaining monetary donations to international development organisations: A factorial survey approach. Social Science Research, 42(6), 1571-1586. doi:10.1016/j.ssresearch.2013.06.011
Lancaster, K. J. (1966). A new approach to consumer theory. Journal of Political Economy, 74(2), 132-157. doi:10.1086/259131
Luke, B., & Chu, V. (2013). Social enterprise versus social entrepreneurship: An examination of the ‘why’ and ‘how’ in pursuing social change. International Small Business Journal, 31(7), 764-784. doi:10.1177/0266242612462598
Marudas, N. P., Hahn, T., & Jacobs, F. A. (2012). An improved model of donations to nonprofit organizations. Paper presented at the ASBBS Annual Conference, Las Vegas, NV. from http://asbbs.org/files/ASBBS2012V1/PDF/M/ MarudasN.pdf
Marudas, N. P., Hahn, T., & Jacobs, F. A. (2014). An improved model of effects of accounting measures of inefficiency on donations. Journal of Finance and Accountancy, 15, 1-15. Retrieved from http://www.aabri.com/jfa.html
McKay, S., Moro, D., Teasdale, S., & Clifford, D. (2014). The marketisation of charities in England and Wales. Voluntas, 26(1), 336-354. doi:10.1007/s11266-013-9417-y
Minello, I. F., Alves Scherer, L., & da Costa Alves, L. (2014). Entrepreneurial competencies and business failure. International Journal of Entrepreneurship, 18, 1-15. Retrieved from http://www.alliedacademies.org/journals.php?jid=7
Okten, C., & Weisbrod, B. A. (2000). Determinants of donations in private nonprofit markets. Journal of Public Economics 75, 255-272. doi:10.1016/ S0047-2727(99)00066-3
Ridley-Duff, R., & Southcombe, C. (2012). The social enterprise mark: A critical review of its conceptual dimensions. Social Enterprise Journal, 8(3), 178-200. doi:10.1108/17508611211280746
Rundle, S. L. (2014). Does donor support help or hinder business as mission practitioners? An empirical assessment. International Bulletin of Missionary Research, 38(1), 21-26. Retrieved from http://www.internationalbulletin.org/
Saxton, G. D., Neely, D. G., & Guo, C. (2014). Web disclosure and the market for charitable contributions. Journal of Accounting and Public Policy, 33, 127-144. doi:10.1016/j.jaccpubpol.2013.12.003
Saxton, G. D., & Wang, L. (2014). The social network effect: The determinants of giving through social media. Nonprofit & Voluntary Sector Quarterly, 43(5), 850-868. doi:10.1177/0899764013485159
Schnable, A. (2015). Religion and giving for international aid: Evidence from a survey of u.S. Church members. Sociology of Religion, 76(1), 72-94. doi:10.1093/socrel/sru037
Smith, B. R., Cronley, M. L., & Barr, T. F. (2012). Funding implications of social enterprise: The role of mission consistency, entrepreneurial competence, and attitude toward social enterprise on donor behavior. Journal of Public Policy & Marketing, 31(1), 142-157. doi:10.1509/jppm.11.033
Tavassoli, S., & Jienwatcharamongkhol, V. (2016). Survival of entrepreneurial firms: the role of agglomeration externalities. Entrepreneurship & Regional Development, 28(9-10), 746-767.
Weisbrod, B. A., & Dominguez, N. D. (1986). Demand for collective goods in private nonprofit markets: Can fundraising expenditures help overcome free-rider behavior? Journal of Public Economics, 30(1), 83-95. doi:10.1016/ 0047-2727(86)90078-2
Wicker, P., Breuer, C., & Hennigs, B. (2012). Understanding the interactions among revenue categories using elasticity measures—Evidence from a longitudinal sample of non-profit sport clubs in Germany. Sport Management Review, 15, 318-329. doi:10.1016/j.smr.2011.12.004
Wiepking, P., & Bekkers, R. (2012). Who gives? A literature review of predictors of charitable giving. Part two: Gender, family composition and income. Voluntary Sector Review, 3(2), 217-245. doi:10.1332/204080512X649379
Young, D. R., & Lecy, J. D. (2014). Defining the universe of social enterprise: Competing metaphors. Voluntas, 25(5), 1307-1332. doi:10.1007/s11266-013-9396-z
Andersson, F. O., & Self, W. (2014). The social-entrepreneurship advantage: An experimental study of social entrepreneurship and perceptions of nonprofit effectiveness. Voluntas, 1-15. doi:10.1007/s11266-014-9543-1
Andorfer, V. A., & Otte, G. (2013). Do contexts matter for willingness to donate to natural disaster relief? An application of the factorial survey. Nonprofit and Voluntary Sector Quarterly, 42(4), 657-688. doi:10.1177/0899764012440180
Bates, M. J. (2015). Why business as mission entrepreneurs decided to go into business. Business Journal for Entrepreneurs, 2015(1), 78-107. Retrieved from http://www.franklinpublishing.net/businessentrepreneurs.html
Bekkers, R., & Wiepking, P. (2011a). A literature review of empirical studies of philanthropy: Eight mechanisms that drive charitable giving. Nonprofit and Voluntary Sector Quarterly, 40(5), 924-973. doi:10.1177/0899764010380927
Bekkers, R., & Wiepking, P. (2011b). Who gives? A literature review of predictors of charitable giving I--Religion, education, age and socialisation. Voluntary Sector Review, 2(3), 337-365. doi:10.1332/204080511X6087712
Calabrese, T. D. (2011). Do donors penalize nonprofit organizations with accumulated wealth? Public Administration Review, 71(6), 859-869. doi:10.1111/j.1540-6210.2011.02420.x
Carabain, C. L., & Bekkers, R. (2011). Explaining differences in philanthropic behavior between Christians, Muslims, and Hindus in the Netherlands. Review of Religious Research, 53(4), 419-440. doi:10.1007/s13644-011-0018-1
Choi, N., & Majumdar, S. (2014). Social entrepreneurship as an essentially contested concept: Opening a new avenue for systematic future research. Journal of Business Venturing, 29(3), 363-376. doi:10.1016/j.jbusvent.2013.05.001
Clarke, M., & Ware, V. (2015). Understanding faith-based organizations: How FBOs are contrasted with NGOs in international development literature. Progress in Development Studies, 15(1), 37-48. doi:10.1177/1464993414546979
Doherty, B. (2011). Resource advantage theory and fair trade social enterprises. Journal of Strategic Marketing, 19(4), 357-380. doi:10.1080/0965254x.2011.581379
Doherty, B., Haugh, H., & Fergus, L. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417-436. doi:10.1111/ijmr.12028
Feiler, S., Wicker, P., & Breuer, C. (2015). How to raise voluntary giving for nonprofit sports clubs: An analysis of factors influencing donations. Voluntas, 26(4), 1219-1239. doi:10.1007/s11266-014-9489-3
Frumkin, P. (2008). Strategic giving: The art and science of philanthropy. Chicago, IL, USA: University of Chicago Press.
Frumkin, P., & Kim, M. (2001). Strategic positioning and the financing of nonprofit organizations: Is efficiency rewarded in the contributions marketplace? Public Administration Review, 61(3), 266-275. doi:10.1111/0033-3352.00029
Giving-USA. (2015). Giving USA 2015 report highlights. Indianapolis, IN: Lilly Family School of Philanthropy.
Glänzel, G., & Scheuerle, T. (2015). Social impact investing in Germany: Current impediments from investors’ and social entrepreneurs’ perspectives. Voluntas. doi:10.1007/s11266-015-9621-z
Grizzle, C. (2015). Efficiency, stability and the decision to give to nonprofit arts and cultural organizations in the United States. International Journal of Nonprofit & Voluntary Sector Marketing, 20(3), 226-237. doi:10.1002/nvsm.1521
Habersetzer, A. (2016). Spinoff dynamics beyond clusters: pre-entry experience and firm survival in peripheral regions. Entrepreneurship & Regional Development, 28(9-10), 791-812.
Helms, S. E., & Thornton, J. P. (2012). The influence of religiosity on charitable behavior: A COPPS investigation. Journal of Socio-Economics, 41, 373-383. doi:10.1016/j.socec.2012.04.003
Herman, R. D., & Rendina, D. (2001). Donor reactions to commercial activities of nonprofit organizations: An American case study. Voluntas: International Journal of Voluntary & Nonprofit Organizations, 12(2), 157-169. doi:10.1023/ A:1011238719394
Herzer, D., & Nunnenkamp, P. (2013). Private donations, government grants, commercial activities, and fundraising: Cointegration and causality for NGOs in international development cooperation. World Development, 46, 234-251. doi:10.1016/ j.worlddev.2013.02.010
Heyes, A., & Martin, S. (2015). NGO mission design. Journal of Economic Behavior and Organization, 119, 197-210. doi:10.1016/j.jebo.2015.08.007
Isaksen, A. (2016). Cluster emergence: combining pre-existing conditions and triggering factors. Entrepreneurship & Regional Development, 28(9-10), 704-723.
Kinsbergen, S., & Tolsma, J. (2013). Explaining monetary donations to international development organisations: A factorial survey approach. Social Science Research, 42(6), 1571-1586. doi:10.1016/j.ssresearch.2013.06.011
Lancaster, K. J. (1966). A new approach to consumer theory. Journal of Political Economy, 74(2), 132-157. doi:10.1086/259131
Luke, B., & Chu, V. (2013). Social enterprise versus social entrepreneurship: An examination of the ‘why’ and ‘how’ in pursuing social change. International Small Business Journal, 31(7), 764-784. doi:10.1177/0266242612462598
Marudas, N. P., Hahn, T., & Jacobs, F. A. (2012). An improved model of donations to nonprofit organizations. Paper presented at the ASBBS Annual Conference, Las Vegas, NV. from http://asbbs.org/files/ASBBS2012V1/PDF/M/ MarudasN.pdf
Marudas, N. P., Hahn, T., & Jacobs, F. A. (2014). An improved model of effects of accounting measures of inefficiency on donations. Journal of Finance and Accountancy, 15, 1-15. Retrieved from http://www.aabri.com/jfa.html
McKay, S., Moro, D., Teasdale, S., & Clifford, D. (2014). The marketisation of charities in England and Wales. Voluntas, 26(1), 336-354. doi:10.1007/s11266-013-9417-y
Minello, I. F., Alves Scherer, L., & da Costa Alves, L. (2014). Entrepreneurial competencies and business failure. International Journal of Entrepreneurship, 18, 1-15. Retrieved from http://www.alliedacademies.org/journals.php?jid=7
Okten, C., & Weisbrod, B. A. (2000). Determinants of donations in private nonprofit markets. Journal of Public Economics 75, 255-272. doi:10.1016/ S0047-2727(99)00066-3
Ridley-Duff, R., & Southcombe, C. (2012). The social enterprise mark: A critical review of its conceptual dimensions. Social Enterprise Journal, 8(3), 178-200. doi:10.1108/17508611211280746
Rundle, S. L. (2014). Does donor support help or hinder business as mission practitioners? An empirical assessment. International Bulletin of Missionary Research, 38(1), 21-26. Retrieved from http://www.internationalbulletin.org/
Saxton, G. D., Neely, D. G., & Guo, C. (2014). Web disclosure and the market for charitable contributions. Journal of Accounting and Public Policy, 33, 127-144. doi:10.1016/j.jaccpubpol.2013.12.003
Saxton, G. D., & Wang, L. (2014). The social network effect: The determinants of giving through social media. Nonprofit & Voluntary Sector Quarterly, 43(5), 850-868. doi:10.1177/0899764013485159
Schnable, A. (2015). Religion and giving for international aid: Evidence from a survey of u.S. Church members. Sociology of Religion, 76(1), 72-94. doi:10.1093/socrel/sru037
Smith, B. R., Cronley, M. L., & Barr, T. F. (2012). Funding implications of social enterprise: The role of mission consistency, entrepreneurial competence, and attitude toward social enterprise on donor behavior. Journal of Public Policy & Marketing, 31(1), 142-157. doi:10.1509/jppm.11.033
Tavassoli, S., & Jienwatcharamongkhol, V. (2016). Survival of entrepreneurial firms: the role of agglomeration externalities. Entrepreneurship & Regional Development, 28(9-10), 746-767.
Weisbrod, B. A., & Dominguez, N. D. (1986). Demand for collective goods in private nonprofit markets: Can fundraising expenditures help overcome free-rider behavior? Journal of Public Economics, 30(1), 83-95. doi:10.1016/ 0047-2727(86)90078-2
Wicker, P., Breuer, C., & Hennigs, B. (2012). Understanding the interactions among revenue categories using elasticity measures—Evidence from a longitudinal sample of non-profit sport clubs in Germany. Sport Management Review, 15, 318-329. doi:10.1016/j.smr.2011.12.004
Wiepking, P., & Bekkers, R. (2012). Who gives? A literature review of predictors of charitable giving. Part two: Gender, family composition and income. Voluntary Sector Review, 3(2), 217-245. doi:10.1332/204080512X649379
Young, D. R., & Lecy, J. D. (2014). Defining the universe of social enterprise: Competing metaphors. Voluntas, 25(5), 1307-1332. doi:10.1007/s11266-013-9396-z
Authors
[1]
“Words are important: Adding the adjective ‘For-profit’ to the term ‘Social Enterprise’ affects intentions to donate”, Soc. sci. humanities j., vol. 2, no. 11, pp. 717–740, Nov. 2018, Accessed: Apr. 19, 2024. [Online]. Available: https://sshjournal.com/index.php/sshj/article/view/251
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