Effect of country characteristics and exogenous shocks on philanthropic impact: Opportunities for marketing strategy influence for nonprofits

AMS Review

Four primary factors affect public policy development related to philanthropy and the resulting social impact: (1) national economic environments, (2) type of government, (3) legal constraints, and (4) role government plays. Each of these affects the source of philanthropy, the destination of the funding, and the type of benefits received. These combined factors also affect the ability of nonprofit organizations to successfully raise and distribute funds needed for the population, particularly in response to an unexpected event, known as an exogenous shock. Tension already exists between a government’s role in philanthropy and nonprofit sector operations. When exogenous shock exerts pressure on this relationship, effects are far-reaching. What impacts that outcome, however, has not been explored. This research examines the factors involved in philanthropic policy to develop a conceptual framework that attempts to explain the impact of the general economic environment and public policy on philanthropy, and the ability of nonprofit organizations to operate successfully. In doing so, the framework adheres to the tenets of the Transformative Consumer Research movement by identifying opportunities for nonprofit organizations to make a positive impact on philanthropy, which has a direct effect on their mission delivery and, therefore, consumer and societal well-being. As a result, academics can empirically test relationships in the model to understand the implications of policy on philanthropy.