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Nonprofit Administration and Management

Atlantic Marketing Journal

2024

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A Multi-Method Examination Of Donor Overhead Aversion: Implications For Marketing A Cause, Devin Lunt, Ryan E. Freling, Lucas D. Lunt Jan 2024

A Multi-Method Examination Of Donor Overhead Aversion: Implications For Marketing A Cause, Devin Lunt, Ryan E. Freling, Lucas D. Lunt

Atlantic Marketing Journal

Overhead aversion refers to a reluctance among donors to contribute to a charitable cause when a portion of that donation is allocated to non-cause-related costs. As a consequence, there is an impact on donor intentions and behaviors. A meta-analysis shows that characteristics of potential donors and the charitable cause moderate the impact of overhead level on donation intentions and behaviors. A follow-up experiment investigates two potential mechanisms underlying overhead aversion: perceived personal impact and perceived efficiency. Results of a survey experiment suggest the negative influence of overhead costs on donative behaviors is exacerbated when potential donors doubt their ability …