Increasing donor’s perceived value from charitable involvement: a multi-segment approach to the American donor market

The importance of nonprofit organizations in offering, supporting and promoting solutions to the world’s greatest problems cannot be underscored. However, in order to accomplish its goals and objectives and maintain a sustainable competitive position, charitable organizations must focus on effective segmentation and marketing strategies that create value for donors. This research draws from charitable giving theory, social exchange theory and relationship marketing literature to examine the influence of a social factor (social recognition), an emotional factor (attitude towards helping others) and a functional factor (attitude towards the charitable organizations) on increasing value for donors from their involvement with a charitable organization. Based on an overall sample of 320 U.S. donors, all three factors have a significant influence on driving donor’s value. However, there are significant differences found when the sample is compared separately based on age, religiosity, donation type and the nature of a donor’s personal involvement with the organization. Social recognition is significantly more important among younger and religious donors and donors with a history of family ties with the organization. However, a donor’s attitude towards the charitable organizations is found to have a greater effect on perceived value among older donors and those who benefit personally from the organization’s charitable work. Finally, for donors who know someone who benefitted from the charitable organization and have a religious affiliation, their attitude towards helping others is the greater driver of perceived value. The study offers practical insight for nonprofit organizations to create value for donors by suggesting effective marketing communication strategies aimed at different segments of the American donor market.