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Assignment #7:

Final Exam

Adam Przytula

Fundraising for Non-Profit Organizations

Professor Melton

October 13, 2024

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Abstract

This essay explores the motivations behind charitable giving through five selected theories

outlined by the textbooks and other resources. The theories of personal values, social

responsibility, social networks, status, and reciprocity provide a comprehensive framework for

understanding why individuals contribute to charitable organizations. These theories are not only

relevant to the wealthy but resonate with broader community values, particularly within the

Seventh-day Adventist Church. By analyzing the SDA Organization's fundraising structure using

M. Hall's categories of centralization, decentralization, and hybrid systems, the essay discusses

how these frameworks facilitate effective communication and localized engagement in

fundraising efforts. Furthermore, the recommendations for enhancing the SDA Organization’s

fundraising strategies emphasize the implementation of comprehensive training programs, the

establishment of transparent communication channels, and a strategic approach to donor

engagement. Each suggestion is designed to align with the organization’s values while creating

deeper connections with donors. Overall, this essay highlights the interplay of motivation

theories and practical strategies that can enhance philanthropic efforts within the SDA

community.
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Introduction

In the realm of charitable non-profit giving, understanding why individuals and families

choose to contribute or refrain from donating is vital for nonprofits seeking to enhance their

fundraising efforts. In this final essay, we aim to explore five significant motivation theories that

describe the various reasons people engage with charitable organizations. Each theory will be

briefly described, along with the rationale for its selection, drawing on examples from the

Seventh-day Adventist (SDA) Organization, course readings, and personal experiences to

illustrate best practices in fundraising. Following this analysis, we will examine the effectiveness

of the SDA Organization's current structural approach to fundraising, assessing how its hybrid

model influences donor engagement. Finally, we will recommend three specific fundraising

strategies that the SDA Organization could implement on a weekly, monthly, or annual basis,

incorporating course material on donor motivation and the fundraising process to ensure a

practical and actionable framework. By addressing these elements, this essay aims to provide

insights into how the SDA Organization is doing well and how they can strengthen its

fundraising initiatives and better fulfill its mission.

Question 1: Comprehensive Giving Theory

Five selected giving motivation theory descriptions

In Why the Wealthy Give: The Culture of Elite Philanthropy, Francie Ostrower outlines

several key motivation theories that explain why individuals and families choose to donate to

charitable organizations. First, personal values play a crucial role, as donors often give in

alignment with their beliefs, such as supporting education, healthcare, or environmental causes.

Second, social responsibility influences giving, many wealthy individuals feel a moral obligation

to give back to their communities and support those less fortunate. Third, social networks
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significantly impact philanthropy, as people are often encouraged to donate through connections

with friends, family, or influential peers who prioritize charitable giving. Fourth, the concept of

status is important, as elite philanthropists may enhance their social standing and reputation

within their communities, reinforcing their identity as responsible and engaged citizens. Lastly,

reciprocity plays a role in motivating donations, as individuals may give in hopes of receiving

something in return, whether it's recognition, a sense of belonging, or the potential for

networking opportunities (Currie & Aizer, 2018). These motivation theories highlight the

interplay of personal beliefs, social influences, and cultural factors that shape charitable giving

among the wealthy.

Rationale for why you selected these theories

I selected these motivation theories because they resonate with my understanding of why

people choose to donate to charitable organizations. First, I chose personal values because many

donors give based on their beliefs and priorities, such as supporting education or health

initiatives(Currie & Aizer, 2018). This theory particularly applies to the Seventh-day Adventist

(SDA) Church, where members often contribute to charitable causes that align with their faith

and mission to help others. Second, I included social responsibility because I believe that

individuals feel a strong moral obligation to support their communities, which inspires them to

give back. I can relate to this motivation, as I see myself giving for similar reasons, wanting to

help those in need and make a positive impact. Third, I chose social networks because I

recognize the influence of friends and family in encouraging charitable giving; often, people

donate after being inspired by those close to them. The theory of status also intrigued me, as

some individuals give to enhance their reputation within their communities and social circles,

which highlights how social dynamics can shape philanthropy. Lastly, I selected reciprocity
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because it reflects the reality that many people hope to receive acknowledgment or a sense of

belonging when they give, demonstrating the personal benefits of philanthropy. These theories

provide a framework for understanding the motivations behind charitable giving, and they

highlight how personal beliefs and social influences intertwine.

Examples of Each Theory

Each motivation theory for charitable giving is illustrated by specific examples that

highlight their significance. For personal values, consider an individual who donates to

educational programs because they believe in the power of education to transform lives, they

may support scholarships for underprivileged students who share their commitment to learning

(Currie & Aizer, 2018). In the case of social responsibility, wealthy families often contribute to

local food banks or shelters, feeling a moral obligation to help those in their community who are

struggling to make ends meet. Social networks are exemplified by a group of friends who

regularly participate in charity runs together; their shared experience and encouragement

motivate each other to raise funds for a cause they all care about. For the status theory, imagine a

businessman who decides to make a substantial public donation to a prominent local charity, by

doing this, he aims to improve his public perception and be seen as a responsible and engaged

member of the community. Lastly, reciprocity can be seen in how members of the Seventh-day

Adventist (SDA) Church donate to various initiatives, such as building community centers or

funding health programs, they want to see their contributions positively impact something they

support and value, which creates a sense of belonging and connection to their faith. These

examples show how different motivations can drive individuals and families to engage in

philanthropy.

Question 2: Organizational Structure

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Detailed description of fundraising organizational structure using M. Hall's categories

The organizational structure of fundraising within the Seventh-day Adventist (SDA)

Organization can be described using M. Hall's categories of centralization, decentralization, and

hybrid systems. The SDA Organization typically operates with a hybrid system, where central

offices set overarching fundraising goals and strategies, while local churches and ministries also

have significant autonomy to pursue fundraising efforts tailored to their specific communities.

This structure allows for effective communication between the central office and local entities,

ensuring that fundraising aligns with the broader mission of the church while also addressing

local needs (Hall, 1992; Brown & LaRose, 2015). For example, local churches may organize

their own fundraising events, such as community service projects or special appeals, while the

central office coordinates larger campaigns and initiatives that support church-wide goals. This

approach encourages a sense of ownership among local congregations and promotes

collaborative efforts in achieving fundraising objectives (Woods & Duhon, 2015). Overall, Hall's

categories help illustrate how the SDA Organization can effectively balance centralized oversight

with local engagement in its fundraising strategies.

What structure might look like more centralized and decentralized

In a more centralized fundraising structure for the Seventh-day Adventist (SDA)

Organization, the central office would have tight control over all fundraising strategies and

initiatives. This would mean that local churches would rely heavily on the central office to set

goals, allocate budgets, and determine which campaigns to prioritize. For instance, a centralized

structure might involve the central office creating a uniform fundraising campaign that all local

congregations must participate in, with strict guidelines on how to implement it. This can

enhance consistency and streamline efforts, but it may limit the ability of local churches to
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address their specific community needs (Hall, 1992; Kelly & McCafferty, 2017). Conversely, in a

more decentralized structure, local churches would have significant freedom to develop their

own fundraising strategies and campaigns, allowing them to tailor efforts to their unique

circumstances. In this scenario, each church might create its fundraising events, such as

community dinners or local outreach programs, without needing extensive approval from the

central office. This flexibility can lead to innovative fundraising solutions that resonate more

with local members (Brown & LaRose, 2015; Woods & Duhon, 2015). Overall, both structures

have their advantages and disadvantages, and the SDA Organization may choose to balance

elements of both to optimize their fundraising efforts.

Recommendations for changes to the organizations' structure

While the organizational structure of the Seventh-day Adventist (SDA) Organization is

already effective, there are two small adjustments that could enhance its fundraising efforts even

further. Firstly, Pastor Mike mentioned that they are actively working on improving

communication channels between the central office and local churches. This initiative can

facilitate regular feedback sessions where local leaders share their experiences and suggestions,

allowing the central office to better understand the unique challenges faced by different

congregations (Hall, 1992). Additionally, providing local churches with more resources for

digital fundraising could help them reach wider audiences and increase donations (Brown &

LaRose, 2015). By embracing technology and encouraging innovative approaches, the SDA

Organization can create a more dynamic fundraising environment. Ultimately, these minor

tweaks, along with improved communication, could help the organization transition from great to

excellent, ensuring that it continues to meet the diverse needs of its members and communities

effectively (Woods & Duhon, 2015; Kelly & McCafferty, 2017).

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Question 3: Fundraising Strategy Suggestions

Describe three specific suggestions for the organization and connect to course materials

To enhance fundraising efforts within the Seventh-day Adventist (SDA) Organization,

three specific suggestions can be drawn from the textbooks by Wesley E. Lindahl and Marilyn

Fischer. First, the organization should implement comprehensive training programs for

fundraising staff that cover both fundamental principles and ethical considerations (Lindahl,

2010; Fischer, 2000). This training would equip staff with the necessary skills to engage with

donors effectively while upholding the organization’s values. Second, establishing transparent

communication channels with donors is essential; this approach creates trust and ensures that

donors feel informed about how their contributions are being utilized (Fischer, 2000). By openly

sharing updates and impact reports, the organization can reinforce its commitment to integrity.

Lastly, the SDA Organization should adopt a strategic approach to donor engagement by

segmenting its donor base and tailoring communication and appeals to different groups (Lindahl,

2010). This targeted strategy allows for more personalized interactions, making donors feel

valued and understood, ultimately encouraging greater support. Implementing these strategies

can significantly improve the organization's fundraising effectiveness while maintaining strong

ethical standards.

The Three Suggestions

To implement comprehensive training programs for fundraising staff within the

Seventh-day Adventist (SDA) Organization, several steps need to be taken. First, the

organization should assess the current skill levels and knowledge gaps of the fundraising team

through surveys or interviews. This will help identify specific areas that need improvement.
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Next, the SDA Organization should develop a structured training curriculum that includes both

theoretical concepts and practical applications, emphasizing the importance of ethical

decision-making in fundraising (Fischer, 2000; Lindahl, 2010). This curriculum can be delivered

through workshops, online courses, or mentorship programs. Additionally, the organization

should schedule regular training sessions, allowing staff to stay updated on best practices and

emerging trends in fundraising. I think this would be great because it will help the SDA

organization focus on finding the optimal fundraising strategy. I recommend this strategy for the

SDA Organization because enhancing the skills of fundraising staff will empower them to

engage effectively with donors while upholding the organization’s values and ethical standards.

To establish transparent communication channels with donors, the SDA Organization can

take several strategic steps. First, the organization should create a communication plan that

outlines how and when updates will be shared with donors, including the types of information to

be communicated (Fischer, 2000). This can involve regular newsletters, impact reports, and

updates on specific projects funded by donations. People enjoy these because it helps them know

where their money is going and it shows that the SDA Organization is actively using the money

for goodThe organization should also invest in a user-friendly donor management system to track

donor interactions and preferences, ensuring that communication is tailored and relevant.

Additionally, the SDA Organization can organize donor appreciation events where they share

success stories and showcase the impact of donations firsthand. I suggest this strategy because

transparent communication creates trust with donors, ensuring they feel valued and informed

about how their contributions are making a difference.

To adopt a strategic approach to donor engagement, the SDA Organization should focus

on segmenting its donor base and customizing communication efforts accordingly. The first step
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is to analyze existing donor data to identify different segments based on giving patterns,

interests, and demographics (Lindahl, 2010). This analysis can help the organization tailor

messages and fundraising appeals that resonate with each group. Next, the SDA Organization

should develop personalized engagement strategies, such as targeted email campaigns, special

events for specific donor groups, or recognition programs that acknowledge their contributions.

Additionally, the organization can utilize social media platforms to engage with donors and share

relevant content, further strengthening relationships. I recommend this strategy for the SDA

Organization because personalized engagement not only makes donors feel appreciated but also

increases the likelihood of continued support and higher donation amounts.

Conclusion

To conclude, the motivations behind charitable giving are complex and deeply influenced

by factors such as personal values, social responsibility, social networks, status, and reciprocity.

These theories provide essential insights for organizations like the Seventh-day Adventist

Church, which balances centralized oversight with local engagement in its fundraising efforts.

By implementing comprehensive training for staff, establishing transparent communication with

donors, and adopting strategic engagement approaches, the SDA Organization can enhance its

fundraising effectiveness. These strategies not only align with the organization's mission but also

strengthen the connections with donors, ensuring that the community's diverse needs are met

effectively. By embracing these positive recommendations, the SDA Organization can further its

mission of service and support within the community.

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References

Carnegie, A. (1933). The gospel of wealth, and other timely essays. Doubleday, Doran & Co.

Currie, J., & Aizer, A. (2018). Measuring motives for charitable giving. NBER Reporter.

Retrieved July 23, 2024, from

https://www.nber.org/reporter/2018number1/measuring-motives-charitable-giving

Fischer, M. (2000). Ethical decision making in fundraising. John Wiley & Sons.

Hall, M. (n.d.). Decentralization of development. Teacher's College Record. Retrieved October

12, 2024, from https://gc.adventist.org/

Lindahl, W. E. (2010). Principles of fundraising: Theory and practice. Jones & Bartlett.

Ostrower, F. (1995). Why the wealthy give: The culture of elite philanthropy. Princeton

University Press.

Seventh-day Adventist Church. (2022.). Organizational structure. Retrieved October 12, 2024,

from https://www.nadadventist.org/about-our-church/organizational-structure

Seventh-day Adventist Church. (2020). Donor-advised funds. Retrieved October 12, 2024, from

https://gc.adventist.org/investments/services/donor-advised-funds/

BNY Mellon. (2022.). Adventist charitable gift fund. Retrieved October 12, 2024, from

https://bnymelloncharitablegiftfund.org/adventist/