Fundraising in Higher Education: A Social Exchange Theory Framework for Sustainable Donor Engagement

Fundraising has evolved into an increasingly important strategic function for higher education institutions pursuing financial sustainability in a competitive educational environment. However, many fundraising activities still lack a strong theoretical framework to explain donor behaviour and long-term relationship-building. This study aims to establish a fundraising framework for higher education grounded in social exchange theory. The research employed a conceptual framework development technique through content analysis of relevant academic literature from top academic databases. The findings expose five inter-related characteristics of institutional inputs, donor perceptions, relational mechanisms, donor behavioural intentions, and fundraising outcomes. Trust was the primary mechanism linking institutional activities to donor responses. The framework underlines the importance of openness, the organisation’s credibility, good communication, and alignment of values in building sustained donor involvement. Contextual factors also affected the efficacy of fundraising. The research reveals that fundraising is essentially a relational, reciprocal process. Future research should empirically test the concept in other higher education settings.