Corporate sponsorships may hurt nonprofits: Understanding their effects on charitable giving |
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| Authors: | Christine M Bennett Hakkyun Kim Barbara Loken |
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| Institution: | 1. Opus College of Business, University of St. Thomas, 1000 LaSalle Avenue, Minneapolis, MN 55403, USAFax: + 1 651 962 5093.;2. School of Business, Sungkyunkwan University, 25‐2 Sungkyunkwan‐ro, Jongno‐gu, Seoul, 110‐745 South Korea;3. Carlson School of Management, University of Minnesota, 321 19th Avenue South, Minneapolis, MN 55455, USAFax: + 1 612 624 8804. |
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| Abstract: | While prior research suggests that corporate sponsorship can positively affect consumers' perceptions of sponsors, little research to date has investigated the impact of such sponsorships on an individual's willingness to support nonprofits. This paper investigates the psychological processes that underlie whether and how corporate sponsorship impacts an individual's willingness to support nonprofit organizations and suggests that unintended negative outcomes may emerge. Specifically, results from five studies suggest that exposure to sponsorship information can reduce prospective donors' willingness to support a nonprofit because people believe that their individual contributions will matter less. In addition, this research identifies a potential mechanism (i.e., donor-company identification) that can mitigate these negative effects. |
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| Keywords: | Nonprofit marketing Sponsorship Donation Charitable giving Social loafing |
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