Skip to main content
Log in

How to Raise Voluntary Giving for Nonprofit Sports Clubs: An Analysis of Factors Influencing Donations

  • Original Article
  • Published:
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations Aims and scope Submit manuscript

Abstract

Nonprofit sports clubs generate revenue from a variety of sources. One of the main income categories is donations. Previous research only analyzed the amount of money generated through donations, but not the influencing factors. The purpose of this study is to investigate determinants of donations for nonprofit sports clubs. The study is based on the public goods theory (Weisbrod in “The economics of nonprofit institutions.” “Studies in structure and policy.” Oxford University Press, New York, pp 21–44, 1986) and the contract failure theory (Hansmann in Yale Law J 89(5):835–902, 1980) and makes use of an unbalanced panel data set from a nationwide online survey of nonprofit sports clubs in Germany (n = 41,343). The results show that particularly the provision of elite sport and the promotion of young talents positively influence the reception of donations. Moreover, sports clubs caring for social aspects, companionship, and conviviality as core values are able to generate higher revenues from donations. The same applies to clubs employing paid staff. Contrary, a commercial orientation was found to have a negative effect.

Résumé

Les clubs sportifs à but non lucratif génèrent des revenus à partir de sources diverses. Parmi celles-ci, les dons constituent l’un des principaux postes de revenus. Les études existantes n’analysent que les sommes générées par les dons, sans considérer les facteurs d’influence. Cette étude vise à rechercher les déterminants des dons faits à des clubs sportifs à but non lucratif. Elle est basée sur la théorie des biens collectifs (Weisbrod 1986) et sur la théorie de l’échec du contrat (Hansmann 1980). Elle exploite les données d’un panel non compensé provenant d’une enquête réalisée en ligne au niveau national et portant sur les clubs sportifs à but non lucratif en Allemagne (n = 41,343). Les résultats indiquent que les faits de proposer un sport d’élite et de promouvoir les jeunes talents influencent particulièrement et de manière positive les dons. De plus, les clubs sportifs attachés aux aspects sociaux, à la camaraderie et à la convivialité génèrent davantage de revenus par le don. Il en va de même pour les clubs qui emploient du personnel rémunéré. À l’inverse, l’orientation commerciale se révèle avoir un effet négatif.

Zusammenfassung

Die Einnahmen gemeinnütziger Sportvereine stammen aus verschiedenen Quellen. Eine der wichtigsten Einnahmekategorien sind Spenden. Bisherige Forschungen analysierten lediglich den durch Spenden erzielten Geldbetrag, nicht jedoch die Einflussfaktoren. Zweck dieser Studie ist die Untersuchung der Determinanten von Spenden an gemeinnützige Sportvereine. Die Studie beruht auf der Theorie der öffentlichen Güter (Weisbrod 1986) und der Theorie des Vertragsversagens (Hansmann 1980) und verwertet unbalancierte Paneldaten aus einer landesweiten Online-Befragung von gemeinnützigen Sportvereinen in Deutschland (n = 41,343). Die Ergebnisse zeigen, dass sich insbesondere das Angebot von Spitzensport und die Förderung von Nachwuchstalenten positiv auf den Erhalt von Spenden auswirken. Darüber hinaus können Sportvereine, die großen Wert auf soziale Aspekte, Gemeinschaft und Geselligkeit legen, höhere Spendeneinnahmen erzielen. Gleiches gilt für Vereine, die über bezahlte Mitarbeiter verfügen. Dahingegen stellte man fest, dass sich eine kommerzielle Orientierung negativ auswirkt.

Resumen

Los clubes deportivos sin ánimo de lucro generan ingresos a partir de una serie de fuentes. Una de las principales categorías de ingresos son las donaciones. Investigaciones previas sólo analizaron el importe del dinero generado mediante donaciones, pero no los factores que influyen. El propósito del presente estudio es investigar los determinantes de las donaciones para los clubes deportivos sin ánimo de lucro. El estudio se basa en la teoría de los bienes públicos (Weisbrod 1986) y en la teoría de los fallos de contrato (Hansmann 1980) y hace uso de un conjunto de datos de panel desequilibrados de una encuesta online a nivel nacional de clubes deportivos sin ánimo de lucro en Alemania (n = 41,343). Los resultados muestran que en particular la provisión de deporte de élite y la promoción de talentos juveniles influyen positivamente en la recepción de donaciones. Asimismo, los clubes deportivos a los que les importan los aspectos sociales, el compañerismo, y la buena convivencia como valores fundamentales pueden generar mayores ingresos de las donaciones. Los mismo se aplica a los clubes que emplean a personal pagado. Por el contrario, se encontró que una orientación comercial tiene un efecto negativo.

摘要

非盈利体育俱乐部的收入来自各种来源。其中一个主要收入类别是捐赠。早期研究仅分析了捐赠带来的收入,但这不是影响因素。本研究的目的是调查非盈利体育俱乐部捐赠的主要因素。研究基于公共货物理论 (Weisbrod 1986) 和合同失败理论 (Hansmann 1980),同时使用了德国非盈利体育俱乐部全国在线调查的不平衡固定样本数据集 (n = 41,343)。结果尤为表明,提供精英体育和促进年轻人才积极影响了所收到的捐赠。此外,体育俱乐部将社会方面、友谊和欢乐视为核心价值可带来更高的捐赠收入。这同样适用于雇用受薪员工的俱乐部。与此相反,商业方向被发现具有负面影响。

ملخص

تنتج النوادي الرياضية الغير ربحية الإيرادات من مجموعة متنوعة من المصادر. التبرعات هي إحد ى فئات الدخل الرئيسية. البحوث السابقة حللت فقط مبلغ المال الذي تم إنشاؤه من خلال التبرعات، لكن ليس العوامل المؤثرة. الغرض من هذه الدراسة هو التحقيق في محددات التبرعات للأندية الرياضية الغير ربحية. تستند هذه الدراسة على نظرية المنافع العامة وايسبرود (Weisbrod 1986) ونظرية فشل العقد (Hansmann 1980) وإستخدام مجموعة جدول البيانات الغير متوازنة من إستطلاع رأي وطني على الإنترنت لنوادي رياضية غير ربحية في ألمانيا (ن41343 =). أظهرت النتائج أن خاصة توفير نخبة الرياضة وتشجيع المواهب الشابة يؤثر إيجابيا˝ على إستقبال التبرعات. علاوة على ذلك، ترعى النوادي الرياضية الجوانب الإجتماعية ٬الرفقة، والعيش المشترك كقيم أساسية قادرة على إنتاج عائدات أعلى من التبرعات. الأمر نفسه ينطبق على أندية توظيف الموظفين المدفوعة. العكس من ذلك، تم العثور على أن التوجه التجاري يكون له تأثير سلبي.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Allison, M. (2001). Sports clubs in Scotland. Edinburgh: SportScotland.

    Google Scholar 

  • Andreoni, J. (1989). Giving with impure altruism: Applications to charity and Ricardian equivalence. The Journal of Political Economy, 97(6), 1447–1458.

    Article  Google Scholar 

  • Andreoni, J. (1990). Impure altruism and donations to public goods: A theory of warm-glow giving. The Economic Journal, 100(401), 464–477.

    Article  Google Scholar 

  • Andreoni, J., & Payne, A. A. (2011). Is crowding out due entirely to fundraising? Evidence from a panel of charities. Journal of Public Economics, 95(5–6), 334–343.

    Article  Google Scholar 

  • Anheier, H. K. (2005). Nonprofit organizations. Theory, management, policy. London: Routledge.

    Google Scholar 

  • Ashley, R., Ball, S., & Eckel, C. (2010). Motives for giving: A reanalysis of two classic public goods experiments. Southern Economic Journal, 77(1), 15–26.

    Article  Google Scholar 

  • Ben-Ner, A., & Gui, B. (2003). The theory of nonprofit organizations revisited. In H. K. Anheier & A. Ben-Ner (Eds.), The study of the nonprofit enterprise. Theories and approaches (pp. 3–26). New York: Kluwer Academic/Plenum Publishers.

    Google Scholar 

  • Breuer, C., & Feiler, S. (2013). Sport Development Report 2011/2012. Analysis of the situation of sports clubs in Germany. Abbreviated version. Cologne: Sportverlag Strauß.

    Google Scholar 

  • Breuer, C., & Wicker, P. (2011). Sport Development Report 2009/2010. Analysis of the situation of sports clubs in Germany. Abbreviated version. Cologne: Sportverlag Strauß.

    Google Scholar 

  • Carroll, D. A., & Stater, K. J. (2009). Revenue diversification in nonprofit organizations: Does it lead to financial stability? Journal of Public Administration Research and Theory, 19(4), 947–966.

    Article  Google Scholar 

  • Chang, C. F., & Tuckman, H. P. (1994). Revenue diversification among non-profits. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 5(3), 273–290.

    Article  Google Scholar 

  • Coalter, F. (2007). Sports clubs, social capital and social regeneration: ‘Ill-defined interventions with hard to follow outcomes’? Sport in Society, 10(4), 537–559.

    Article  Google Scholar 

  • Cordes, J., & Sansing, R. (2007). Institutional philanthropy. In D. R. Young (Ed.), Financing nonprofits. Putting theory into practice (pp. 45–68). Lanham, MD: AltaMira Press.

    Google Scholar 

  • Doherty, A., & Misener, K. (2008). Community sport networks. In M. Nicholson & R. Hoye (Eds.), Sport and social capital (pp. 113–141). Oxford: Butterworth-Heinemann.

    Google Scholar 

  • DOSB. (2012). Bestandserhebung 2012 [Annaual Survey 2012]. Frankfurt: Deutscher Olympischer Sportbund [German Olympic Sports Confederation].

  • Enjolras, B. (2002). The commercialization of voluntary sport organizations in Norway. Nonprofit and Voluntary Sector Quarterly, 31(3), 352–376.

    Article  Google Scholar 

  • Fischer, R. L., Wilsker, A., & Young, D. R. (2011). Exploring the revenue mix of nonprofit organizations: Does it relate to publicness? Nonprofit and Voluntary Sector Quarterly, 40(4), 662–681.

    Article  Google Scholar 

  • Frumkin, P., & Keating, E. K. (2011). Diversification reconsidered: The risks and rewards of revenue concentration. Journal of Social Entrepreneurship, 2(2), 151–164.

    Article  Google Scholar 

  • Gratton, C., Liu, D., Ramchandani, G., & Wilson, D. (2012). The global economics of sport. Oxon: Routledge.

    Google Scholar 

  • Gratton, C., & Taylor, P. (2000). Economics of sport and recreation. London: E & FN Spon.

    Google Scholar 

  • Grønbjerg, K. A. (1991). How nonprofit human service organizations manage their funding sources: Key findings and policy implications. Nonprofit Management and Leadership, 2(2), 159–175.

    Article  Google Scholar 

  • Grønbjerg, K. A. (1993). Understanding nonprofit funding. Managing revenues in social services and community development organizations. San Francisco: Jossey-Bass Publishers.

    Google Scholar 

  • Gumulka, G., Barr, C., Lasby, D., & Brownlee, B. (2005). Understanding the capacity of sports & recreation organizations. Toronto: Imagine Canada.

    Google Scholar 

  • Handy, F., & Brudney, J. L. (2007). When to use volunteer labor resources? An organizational analysis for nonprofit management. Vrijwillige Inzet Onderzocht, 4, 91–100.

    Google Scholar 

  • Hansmann, H. (1980). The role of nonprofit enterprise. The Yale Law Journal, 89(5), 835–902.

    Article  Google Scholar 

  • Hansmann, H. (1987). Economic theories of nonprofit organization. In W. W. Powell (Ed.), The nonprofit sector: A research handbook (pp. 27–42). New Haven: Yale University Press.

    Google Scholar 

  • Herman, R. D., & Rendina, D. (2001). Donor reactions to commercial activities of nonprofit organizations: An American case study. Voluntas, 12(2), 157–169.

    Article  Google Scholar 

  • James, E. (1990). Economic theories of the nonprofit sector: A comparative perspective. In H. K. Anheier & W. Seibel (Eds.), The third sector: Comparative studies of nonprofit organizations (pp. 21–29). Berlin: de Gruyter.

    Google Scholar 

  • Kearns, K. (2007). Income portfolios. In D. R. Young (Ed.), Financing nonprofits. Putting theory into practice (pp. 291–314). Lanham, MD: AltaMira Press.

    Google Scholar 

  • Khanna, J., & Sandler, T. (2000). Partners in giving: The crowding-in effects of UK government grants. European Economic Review, 44(8), 1543–1556.

    Article  Google Scholar 

  • Kingma, B. R. (1989). An accurate measurement of the crowd-out effect, income effect, and price effect for charitable contributions. Journal of Political Economy, 97(5), 1197–1207.

    Article  Google Scholar 

  • Kingma, B. R. (1997). Public good theories of the non-profit sector: Weisbrod revisited. Voluntas, 8(2), 135–148.

    Article  Google Scholar 

  • Koski, P. (1995). Organizational effectiveness of Finnish sports clubs. Journal of Sport Management, 9(1), 85–95.

    Google Scholar 

  • Lamprecht, M., Fischer, A., & Stamm, H. (2012). Die Schweizer Sportvereine: Strukturen, Leistungen, Herausforderungen [Swiss sports clubs: Structures, offers, challenges]. Zürich: Seismo Verlag.

    Google Scholar 

  • Lasby, D., & Sperling, J. (2007). Understanding the capacity of Ontario sports and recreation organizations. Toronto, ON: Imagine Canada.

    Google Scholar 

  • Marudas, N. P., & Jacobs, F. A. (2004). Determinants of charitable donations to large U.S. higher education, hospital, and scientific research NPOs: New evidence from panel data. Voluntas, 15(2), 157–179.

    Article  Google Scholar 

  • Okten, C., & Weisbrod, B. A. (2000). Determinants of donations in private nonprofit markets. Journal of Public Economics, 75(2), 255–272.

    Article  Google Scholar 

  • Payne, A. A. (1998). Does the government crowd-out private donations? New evidence from a sample of non-profit firms. Journal of Public Economics, 69(3), 323–345.

    Article  Google Scholar 

  • Preston, A. E. (1988). The nonprofit firm: A potential solution to inherent market failures. Economic Inquiry, 26(3), 493–506.

    Article  Google Scholar 

  • Rooney, P. (2007). Individual giving. In D. R. Young (Ed.), Financing nonprofits. Putting theory into practice (pp. 23–44). Lanham, MD: AltaMira Press.

    Google Scholar 

  • Rose-Ackerman, S. (1996). Altruism, nonprofits, and economic theory. Journal of Economic Literature, 34(2), 701–728.

    Google Scholar 

  • Sokolowski, S. W. (2013). Effects of government support of nonprofit institutions on aggregate private philanthropy: Evidence from 40 countries. Voluntas, 24(2), 359–381.

    Article  Google Scholar 

  • SRA. (2013). Sports club survey 2013. A review of clubs including membership, facility access, finances, challenges and opportunities. London: The Sport and Recreation Alliance.

    Google Scholar 

  • Stahl, S., Wicker, P., & Breuer, C. (2011). Strukturelle und kontextuelle Spezifika von selbstorganisierten Migrantensportvereinen [Structural and contextual aspects of self-organized migrant sports clubs]. Sport und Gesellschaft [Sport and Society], 8(3), 197–231.

    Google Scholar 

  • Steinberg, R. (1991). Does government spending crowd out donations? Annals of Public and Cooperative Economics, 62(4), 591–612.

    Article  Google Scholar 

  • Steinberg, R. (2006). Economic theories of nonprofit organizations. In W. W. Powell & R. Steinberg (Eds.), The non-profit sector. A research handbook (2nd ed., pp. 117–139). New Haven: Yale University Press.

    Google Scholar 

  • Ulseth, A.-L. B. (2004). Social integration in modern sport: Commercial fitness centres and voluntary sport clubs. European Sport Management Quarterly, 2(4), 95–115.

    Article  Google Scholar 

  • Vos, S., Breesch, D., Késenne, S., Lagae, W., Hoecke, J. V., Vanreusel, B., et al. (2012). The value of human resources in non-public sports providers: The importance of volunteers in non-profit sports clubs versus professionals in for-profit fitness and health clubs. International Journal of Sport Management and Marketing, 11(1), 3–25.

    Article  Google Scholar 

  • Weisbrod, B. A. (1986). Toward a theory of the voluntary nonprofit sector in a three-sector economy. In S. Rose-Ackerman (Ed.), The economics of nonprofit institutions. Studies in structure and policy (pp. 21–44). New York: Oxford University Press.

    Google Scholar 

  • Weisbrod, B. A. (1998). To profit or not to profit. The commercial transformation of the nonprofit sector. Cambridge: University Press.

    Book  Google Scholar 

  • Weisbrod, B. A. (2004). The pitfalls of profits. Stanford Social Innovation Review, 2(3), 40–47.

    Google Scholar 

  • Weisbrod, B. A., & Dominguez, N. D. (1986). Demand for collective goods in private nonprofit markets: Can fundraising expenditures help overcome free-rider behavior? Journal of Public Economics, 30(1), 83–96.

    Article  Google Scholar 

  • White, H. (1980). A heteroscedasticity-consistent covariance matrix estimator and a direct test for heteroscedasticity. Econometrica, 48(4), 817–838.

    Article  Google Scholar 

  • Wicker, P., & Breuer, C. (2013). Understanding the importance of organizational resources to explain organizational problems: Evidence from nonprofit sport clubs in Germany. Voluntas, 24(2), 461–484.

    Article  Google Scholar 

  • Wicker, P., Breuer, C., & Hennigs, B. (2012). Understanding the interactions among revenue categories using elasticity measures - Evidence from a longitudinal sample of non-profit sport clubs in Germany. Sport Management Review, 15(3), 318–329.

    Article  Google Scholar 

  • Wicker, P., Breuer, C., Lamprecht, M., & Fischer, A. (2014). Does club size matter? An examination of economies of scale, economies of scope, and organizational problems. Journal of Sport Management, 28(3), 266–280.

  • Wooldridge, J. M. (2013). Introductory econometrics. A modern approach (5th ed.). Mason: Thomson South-Western.

    Google Scholar 

  • Young, D. R. (2007). Why study nonprofit finance? In D. R. Young (Ed.), Financing nonprofits. Putting theory into practice (pp. 3–20). Lanham, MD: AltaMira Press.

    Google Scholar 

  • Young, D. R., & Steinberg, R. (1995). Economics for nonprofit managers. New York, NY: The Foundation Center.

    Google Scholar 

Download references

Acknowledgments

The authors would like to thank the Federal Institute for Sports Sciences (BISp), the German Olympic Sports Confederation (DOSB), and the 16 federal state sports confederations (LSBs) for supporting the research into sports clubs in Germany (Sport Development Report).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Svenja Feiler.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Feiler, S., Wicker, P. & Breuer, C. How to Raise Voluntary Giving for Nonprofit Sports Clubs: An Analysis of Factors Influencing Donations. Voluntas 26, 1219–1239 (2015). https://doi.org/10.1007/s11266-014-9489-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11266-014-9489-3

Keywords

Navigation