Nonprofit Fundraising and Social Identity

The purpose of this topic paper is to determine whether nonprofits can increase their fundraising capabilities by better managing their donors’ social identities. The nonprofit sector in the United States generated nearly $1.9 trillion in gross output, is estimated to contribute 5.6% toward the country’s $25.5 trillion in gross domestic product (GDP), and contributes immeasurable benefits to society. The industry continues to face challenges as the demand for services has increased and fundraising difficulties persist. This article analyzes peer-reviewed articles focused on nonprofit fundraising using a systematic approach. My findings suggest that one of the keys to effective nonprofit fundraising is the management of information on donors’ social identity. Appropriately, social identity theory is seen as an effective lens with which to meet this challenge. Several essential aspects of donor identities emerge from the research, including their demographic profiles and their motivations to give. In addition, how donors choose to give, what they actually give, and why they select one cause over another are key considerations that contribute to social identity.