Financial sustainability of nonprofit organizations

Abstract

As nonprofit organizations have made strides in the field of international development, ensuring the financial resources has become a key issue to continue what nonprofits strive for and how they perform with the budget which are generated without efforts for profit-making. In terms of financial sustainability, this research aims to figure out the determinants of constructing donation behavior which are affected by fundraising campaigns. The factors to measure in this study are mainly divided into two parts: factors affected by donors’ attitudes such as emotional sympathy and economic value and by organizations’ performances such as accountability, relevance, and sustainability. By analyzing quantitative data collected by survey, the regression results reveal that fundraising campaigns should consider both donors’ behavioral and institutional performance factors when soliciting donors’ giving behavior. By select fundraising campaigns corresponding to the purposes of the Sustainable Development Goals (SDGs), the results of this paper present that it is important to ensure the financial sustainability of nonprofit organizations and thereby to enhance the public awareness for more successful implementation of SDGs.