Donor Reaction to Non-Financial Information Covering Social Projects in Nonprofits: A Spanish Case

What is it about?

The main objective of this work is to analyze whether the donations received by NGOs are related to the information they disclose about the projects carried out.

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Photo by Markus Winkler on Unsplash

Photo by Markus Winkler on Unsplash

Why is it important?

The results show that this information is useful to public donors, especially the financial content, while private donors prefer to rely on corporate information related to project results and impact. In contrast, individual donors do not take this corporate information into account. The above suggest that each donor profile focuses on a particular aspect of the actual donation, which raises the question of whether nonprofits should rethink their communication and reporting. Instead of the single reporting model for all social projects, as is the case among Spanish nonprofits, a more flexible reporting model that allows different data to be reported to different users could be considered.