American Research Journal of Humanities and Social Sciences

Volume 7, Issue 1, 1-9 Pages

Research Article | Open Access
ISSN (Online)- 2378-7031
DOI :

Fundraising in Not-For-Profit Sport Organizations: The

Management Perspective
Fahd A. Raza
Niagara University

Abstract
While nonprofit sports organizations have existed for many years, there is a knowledge gap in research on how best to
operate from a management point of view. Since nonprofits need a consistent inflow of revenue, and by nature do not
make a profit, they need to focus on revenue generation the most, and from sustainable donors. In an effort to discuss
a synthesis of literature on this subject, an overarching definition of fundraising for sports nonprofits is attempted. Also
discussed is the best way to approach the marketing function for this particular type of organization, evaluating the
possible sources of funding, including individuals, legacy donations, and corporate social responsibility. Furthermore,
the planning and human resource functions are discussed, concluding with a brief discussion on the importance of data
analysis in this field. While this paper is mostly about sports nonprofits, the general principles discussed here can be
applied to other nonprofit entities as well.
Keywords: Fundraising, nonprofit, sports, definition, donation.

Introduction While there is a lot of research on the specifics of fundraising

for sport organizations, there is a surprising dearth of
There is a deep and strong history between sports teams and
literature on the overall conceptualization of the topic
social and charitable projects undertaken by their mother
organizations (Babiak & Wolfe, 2009; Krueger, 2007; Miller, (Sparvero & Kent, 2014). The aim of this paper is to contribute
2006). While social work conducted by sports nonprofits to the explanation of this important task of management
has been around for quite a while, over the years, its scope and to help with its application in sports. This study aims
has narrowed according to the outlook and strategy of the to create a basis for further research into the management
nonprofit, and formalization has increased (Sparvero & Kent, of fundraising in not-for-profit sports organizations, which
2014). others can build upon. It should be noted, however, that
the line between fundraising for nonprofits in general and
Due to the lack of consistent revenue streams in not-for-
profit sports organizations, such organizations are forced sports in particular is blurry. Since fundraising challenges
to independently and continuously seek financial resources are present not only in sports but also in cultural, social,
and equipment and to receive some type of assistance or socio-cultural, environmental, educational and other
the other from high-net-worth individuals, companies, or organizations, this paper will attempt to further study in
donor organizations, and the general public, so that they those areas as well.
can perform their activities and realize their goals and
The advantages of organizations that focus on sports in
objectives. These are generally in the form of discrete funded
relation to other non-profits are in their mass appeal (Filo
projects (Canon, 2011). The word “fundraising” does not
et al, 2018; Gallagher, 2012; Lipsey, 2019), high frequency
have a complete definition, i.e., a precise, all-encompassing
of fulfillment of purpose, such as numerous repetitive
characterization. For the purposes of this paper, fundraising
for sports non-profits will be defined as gathering financial tournaments catering to children (Plumly, 2014; Neal, 1997;
and other resources from external entities (including Hendricks & Peelen, 2013), and role in the psycho-physical
individuals) in order to achieve specific, project-oriented, development of people of all ages (Jayanthi et al, 2013; Shular
short-term goals for the benefit of society in general through et al, 2012; Myer et al, 2016). Fundraising can additionally
the use of sports as a means of social agency (Kelly, 2012; provide funding and create a positive public image (Blaney
Gallagher et al, 2012; Krieger, 2018; Filo et al, 2018). et al, 2012; Siegfried & Zimbalist, 2000; Yuen, 2008).

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 Fundraising in Not-For-Profit Sport Organizations: The Management Perspective

The Marketing Approach standpoint. However, in order to enable sustainability of

incoming donations, institutions should also be focused on.
The marketing approach to fundraising in sport organizations
Sporting events, including those targeting social impact,
was developed in the United States and then adopted as a
generally have a larger audience (Sparvero & Kent, 2014).
technique in Europe and especially in Germany (Stier Jr &
They further point out that these organizations need to be
Schneider, 1999; Vamplew, 2018; Bailey, 2008; Wood et al,
2010; Howard, 2018). The American concept of fundraising picky in terms of what projects they seek donations for.
implies meeting financial needs over a longer term and is This balance requires a varying strategy for each individual
considered one of the most important tasks of a non-profit and institution being contacted, since the objectives of each
organization (Keating et al, 2008; Jun, 2015; Pollach et al, are different in as much as what they perceive as positive
2005; Dove, 1988). As a marketing strategy, fundraising results, namely either altruism or gratification of interest
not only provides for money and equipment, but also helps in the sport (individuals), or corporate social responsibility
in other forms, such as making long-term connections (institutions).
with friends and benefactors of particular teams who are Combing Possible Sources of Funding for
nurtured over time (Shani, 2015). That is why, when sports Sports Organizations
fundraising is discussed, it is extended to marketing the
procurement of financial and other resources, and also the If we take the definition mentioned earlier in the paper,
marketing of established relationships between the non- then not for profit sports organizations are created with a
profit and the community. It must be kept in mind, though, special goal, which is to provide support specific for limited,
that marketing for sports nonprofits is only slightly tangential repetitive projects (tournaments), with short-term goals of
to the mainstream, since the fundamentals of tapping into providing benefit to society in general, without striving to
society are the same (Smith & Westerbeek, 2007; Godfrey, achieve financial results. Since it is the nature of projects,
2006; Chalip, 2006; Babiak et al, 2012). financial stimulation is imperative as a condition for their
realization. Not only that, but also the economic survival of
Worth et al (2020) have categorized donor motivations
into four broad categories, namely: altruism, benefits to the entire non-profit directly depends on conditions that
the donor, desire to have an impact, and tradition/legacy/ allow for continuous inflow and the significance of funds
memoria. Since fundraising is the systematic and continuous (Pintarič & Kravanja, 2015). Seeking donors, therefore, and
acquisition of financial and other resources in not-for- increasingly competitive ways to vie for larger amounts
profit organizations (equipment, knowledge, time, etc.) of funds, is a continuous job for not-for-profit sports
from private entities and individuals, professionals of this organizations (Nonprofit Business Advisor, 2017; Littlewood,
field should display certain high-level skills (Tempel, 2010). 2000; Faulk et al, 2020).
Individuals representing institutions should have a deep and Fundraising for sporting events is highly competitive, not just
up-to-date understanding of the sport, their target market, with other similar organizations, but with general, voluntary,
financial limitations, perseverance, and persuasiveness. It
or corporate donations. The same donors are approached by
needs to be kept in mind that the payoff for the donor is not
socio-humanitarian organizations, organizations in health,
just financial (like tax credit), but also the inner satisfaction
culture, education, media, unions, local government bodies,
that their donation, whether it be money, equipment, or
and others who are striving to secure funding (Aldashev et al,
time, etc., made a difference in whatever cause they deemed
2020; Warren et al, 2016; Paarlberg & Hwang, 2017; Orzan,
worthy, and the organization requesting the donation should
2008). Activity in this area requires the participation of those
build sustainable, positive connections leading to long term,
who have a convincing and argumentative performance, who
mutually beneficial relationships. Successful fundraising,
therefore, requires strategic, long term planning, a mutually are morally irrefutable, efficient, and who have the ability
beneficial approach, and highly professional, effective results to change the priorities of giving to people who express an
(Hyejin et al, 2012; 2013). interest in donating or in sports (Milosevic, 2018; Herbst &
Norton, 2007; Deller, 2000; Huang, 2006; Ragsdale, 2006).
In developed market economies, where the accepted social
responsibility of individuals and organizations in giving Fortunately, the list of sources of funding for sports non-profits
‘back’ to society is traditionally far greater than in developing is quite broad. Any institution, organization, or individual
or underdeveloped countries, the largest donors are often that is willing to give to support positive developmental
high-net-worth individuals, and then institutions (Cagney change in the sphere of interest that is relevant to them
& Ross, 2013; Breeze & Scaife, 2015). However, the same should be tapped, including, but not limited to government
individuals are more prone to donor fatigue, of which many organizations, development agencies, international donor
institutions have a higher threshold (Grépin, 2012; Awadari, organizations, local and state authorities, private foundations,
2020; Bai, 2011). It is therefore advisable to contact private large and small companies, entrepreneurs and investors,
individuals with a high net-worth from the receptiveness foreign embassies, and private individuals.

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 Fundraising in Not-For-Profit Sport Organizations: The Management Perspective

Planning and Human Resource Activities for people volunteering for sports project. Nichols & Ojala
for Fundraising (2009) wrote that for fans, volunteering for sporting
organizations was a psychological contract giving them
Any fundraising program starts with strategic and operational
fulfilment. Research has also concluded that there are other
planning in order to create an environment conducive to
reasons to factor in as well, such as the hope for employment,
continuous cooperation. Prior to starting the planning
the feeling of happiness, the motivation to work harder, and
process, it is necessary to understand the dynamic nature
upwards mobility in social perception (Nichols et al, 2013;
of the ‘donor market’, from which the provision of funds is Griffiths & Armour, 2012; Vos et al, 2012; Baum & Lockstone,
expected to be extracted. The universally accepted model is 2007). Unfortunately, it’s often the non-profits themselves
the “pyramid of donors”. who underestimate the importance of the role of volunteers
At the base of this pyramid is the superset, or the entire or do not take them seriously enough, although they (the
targeted population, including recurring and new donors. volunteers) spend a lot of their free time and invest a lot
Next up are those donors who have contributed at least of energy and creative potential in helping the non-profits
once, followed by donors who have contributed multiple reach their targeted goals.
times (Fitch & Sorensen, 2007; AbouAssi, 2013; Glassman The planning process is perhaps the most important
et al, 2013; Sjöstedt, 2013). An excellent work by Pfeffer prerequisite for success (Sargeant, 2014; Allen, 2009;
and Salancik (1978) focuses on the concept of the Resource Klein, 2011; Fogal, 2005; Sand, 2005). The focus of the
Dependency Theory (RDT), which implies that organizations planning process should be that priorities are recognized,
have a continuous and dire need for resources, which they past successes and failures analyzed, and more promising
can never have enough of, and they seek to fulfil this need alternatives identified. Successful planning requires realistic
from their environment. This view directly allows us to expectations and a realistic assessment of the market
understand fundraising from the management perspective. situation. For organizations that depend on donations, this
However, human resources are arguably the most important means that amounts needed and timelines they are needed
part of the nonprofit (Akingbola, 2015; Meyer, & Leitner, by are properly assessed (Hanson, 1997; Dvorakova &
2018; Mesch, 2010; Guo et al, 2011). At the tactical level, these Mackova, 2014; Gallagher & Gilmore, 2012; Jay & Sargeant,
can be generally categorized as associates and volunteers 2004; Jeavons & Basinger, 2000). Strategic planning
(Backer, 2001; Minzner et al, 2014; Paxton et al, 2020; Smith requires time and critical analysis and the involvement of all
& Shen, 1996). It should be kept in mind that every member associates and volunteers in the organization. This includes
of the non-profit has to participate wholly and fully in the comparative research on how the goals are to be achieved,
processes of planning, setting goals and priorities, and the how the success of the organization is to be evaluated, and
implementation of the project, and thus strengthen their the correction of strategic orientation depending upon the
sense of being involved as an important part of achieving results.
the strategic objectives of the organization (Levinson, 1987;
The Importance of Data
Boris et al, 2010; Alexander, 1999; James, 1983). Everyone
should feel the responsibility for further development Data analysis is key. For established sports nonprofits data
of the organization and the execution of tasks specific to mining can be done on existing donors to discover their
them and how that impacts the strategic bottom line of the motives and the extent to which they can be approached.
organization (Austin, 2000; Duckles et al, 2005; Walk et al, Their ‘bond’ with the sport needs to also be evaluated
2014; Ogliastri et al, 2016). Associates should be regularly (Hardin et al, 2010; Popp et al, 2016; Won et al, 2010; Naito,
updated about strategic and tactical successes and failures of 2008). Newer nonprofits can either conduct a fresh market
the organization to ensure their continuous cooperation. evaluation or get research from professional organizations.
This will show the way to retaining existing and approaching
For smaller sports non-profits with limited resources, new donors. Future donors can also be found on the basis
volunteer associates are extremely important (Schneider, of published annual business reports, which list the social
2003; Hou & Lampe, 2015). They can critically influence the public responsibility budgets of larger organizations. These
success or failure of an organization by bringing new ideas, also contain data on business success, on the inflow and
abilities, energy, and freshness. Furthermore, the importance outflow of funds, and on the amount of donations in the
of in-house training cannot be exaggerated. It is generally previous period. An important function of fundraising is
accepted that no resources should be spared for the training statistical data analysis (Birkholz, 2020; Ryzhof et al, 2016;
of volunteers and associates, because that investment will Fan-Osuala et al, 2018). Statistics provides a picture of all
pay off in the long run (Dolan, 2002; Heinrich, 2000; DeVaro stored data. In fundraising, there are certain values and
et al, 2017; Austin et al, 2011; Lysakowski, 2005). Talented indicators that need to be known:
volunteers not only take on important tasks but can also pass
on their enthusiasm to new entrants and potential donors. 1. number of received emails
The love of sports often weighs as the primary motivation 2. total number of responses (voluntary contributions)

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 Fundraising in Not-For-Profit Sport Organizations: The Management Perspective

3. total amount of contributions expressed in one currency 2015). However, it must be kept in mind that the donor is
(US Dollars) not necessarily just looking for financial (like tax credit)
gain, rather quite possibly self-actualization. The nonprofit’s
4. percentage response, mean value, and standard
connections should build sustainable, positive, long term,
deviation, and other relevant statistical functions.
and mutually beneficial relationships (Hyejin et al, 2012;
New fundraising opportunities can be found in financially 2013).
emerging districts and neighborhoods of the city around the
Funding opportunities for sports non-profits are quite vast.
location of sports nonprofit. Specifically, the areas revealed
Any institution, organization, or individual that is willing to
through research to be frequent in visiting sporting events.
give to support positive developmental change in the sphere
The term ‘legacy marketing’ (Richardson & Chapman, 2005;
of interest that is relevant to them should be tapped, including,
Sargeant et al, 2006; Radcliffe, 1998; Rodd, 1998) implies
but not limited to government organizations, development
that the affluent should be invited to pledge either one-time,
agencies, international donor organizations, local and state
or continuing donations of large sums from their inheritance.
authorities, private foundations, large and small companies,
Research suggests that many of the country’s elite are willing
entrepreneurs and investors, foreign embassies, and private
to commit to this for the love of sport (Thomson et al, 2013;
individuals.
Seifried & de Wilde, 2014; Gladden et al, 2005; Ko et al,
2014). Some of the most overlooked areas in managing such an
organization are training of volunteers and data analysis.
One area often overlooked is the website of the sports
Smaller nonprofits can simply purchase data from research
nonprofit. Together with other instruments of peripheral
companies, and trainings can be given in-house or through
interaction, it actively disseminates information to whomever
professionals. However, the need for both these is imperative,
visits. While just an online presence hardly guarantees
and cannot be overstated.
results, presenting the nonprofit in a positive light and being
easily accessible to a potential donor is impossible without In conclusion, the field of fundraising for sports nonprofits is
it. quite similar to mainstream nonprofit social organizations.
Every sporting event is a project that needs funding, and
Furthermore, social, promotional, marketing and ceremonial
that funding can be achieved through targeted marketing
sporting events must be held. They have two important
and correct application of human resources. Internal
effects. Firstly, they can help attract new people with new
management is key for effective results. After all, finance is
ideas as volunteers, associates, and potential donors, and
the lifeblood of the organization.
to connect existing donors even more strongly with the
sports nonprofit, and secondly such events are a way of References
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Citation: Fahd A. Raza, “Fundraising in Not-For-Profit Sport Organizations: The Management Perspective”, American
Research Journal of Humanities and Social sciences, Vol 7, no. 1, 2021, pp. 1-9.
Copyright © 2021 Fahd A. Raza, This is an open access article distributed under the Creative Commons Attribution
License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is
properly cited.

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