Motivations Behind NOT Donating

Goals

To research the reasons why people would choose not to fund and/or donate non-profit organizations.

Early Findings

Reasons Non-Profit Organization are denied donations by people:

1. Lack of Transparency:
  • Donors tend to avoid donating to a non-profit if they don't know how their money is being used.
  • To avoid this, they need to be kept engaged with the non-profit rather than just donating money. They should be informed about what goals their donations have helped achieving and how.
2. Inefficiency:
  • People tend to research the charity they are donating to understand how they use their money. For example what percentage of it is utilized for the benefit of people/nature/animals. Charity watchdogs rate charities according to this percentage, and those that use more than 75% of donations for effective good, are given the highest rating.
  • For example, CharityWatch gave the Disabled Veterans National Foundation an F rating as it spent only 4 percent on its programs. On the other hand, the National Military Family Association received an A as it spent 82 percent for the benefit of Miliary families.
3. Lack of Compelling causes: Sometimes people may also feel that the causes the charity is working for is not worth their donations.

Personal Reasons:

  • People prefer donating to their local communities and domestic charities. "Ninety-five percent of the $240 billion that individuals in the United States give to charities annually goes to domestic non-profits while only 5% is donated internationally."
  • People think they need to save more money for themselves and their families. They might as well think their donations would be too small to make a difference.
  • They might think differently about poverty. For example, poverty can't be solved, it's not the problem, its a symptom, governments are supposed to solve it, it might make developing nations more dependent on foreign funding, etc.

Internal Factors of Non-Profit Organizations:

According to the National Association of Nonprofit Organizations & Executives (NANOE), some internal reasons behind failure of non-profit organizations are:
  • Empty optimism: Leaders fail to accurately calculate the amount of support that would be available, or the alliances and partnerships their organizations need to support their launch.
  • Poor organizational development: The organization might lack core values, and hence, internal trust. The leaders might prefer the "do as I say" approach and might find it difficult to transfer power and share the limelight with an empowered team.
According to the National Executive Service Corps (NESC), non-profits also fail financially due to the following reasons:

Proposed next steps:

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