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Effects of Fundraising Alliances on Charitable Donations

"Fundraising Alliances (FAs) are independent organizations that fundraise for two or more charities under a separate brand. High-profile examples of FAs include the Disasters Emergency Committee (DEC) in the United Kingdom and the Humanitarian Coalition (HCC) in Canada. FAs are designed to reduce promotional costs and increase the effectiveness of fundraising efforts. FAs are thought to be differentially effective for smaller charities that are less familiar and that do not have the managerial and financial resources to fundraise independently. However, are FAs actually effective? The present research examines the conditions under which individual charities are better off joining an FA rather than fundraising independently. We find evidence that FAs do not help (and may harm) charity fundraising, particularly for smaller charities that are perceived to be low on familiarity, trustworthiness, and effectiveness. The research has important implications for nonprofit marketing and contributes to the literature on branding and charity fundraising." (Abstract)