Cultivating Donor Trust in Uncertain Environments: An Analysis of Disaster Relief NGO Websites

• In Event: Voluntary Action in a Crisis

Abstract

According to Phillips and Blumberg (2017), “Public trust is the currency of the nonprofit sector” (p. 318). Because nonprofits rely on public support, it is critical that they cultivate high degrees of trustworthiness and accountability (Farwell, et al.,2019; Russell, et al.,2023). In domains characterized by high degrees of uncertainty and information asymmetry, nonprofit status may act as a positive signal of the quality of goods and services offered (Handy, et al.,2010; Hansmann,1980). Indeed, research has demonstrated that individuals express a preference for nonprofits when it comes to selecting hospitals and nursing homes (Holtmann & Ullmann,1991; Schlesinger, et al.,2004). However, high degrees of information asymmetry may also lead the public to be more skeptical and selective when it comes to choosing where to donate money or volunteer. One such context is international disaster relief, where numerous complexities contribute to prospective donors’ inability to monitor how their donations are spent. In situations where information asymmetry is high, and both competition and demand for public support are also high, how do nonprofit organizations signal their trustworthiness to potential supporters?
We will explore this question using a content analysis of nonprofit disaster relief agencies’ websites (Domas White & Marsh,2006), focusing mainly on qualitative components of the data. We have chosen to analyze nonprofit websites because they are a ubiquitous tool used to not only share information but also solicit donations. Therefore, this approach will uncover how nonprofits represent themselves publicly, including their strategies for signaling trustworthiness and generating support. While an interdisciplinary literature has discussed the application of content analysis to websites (e.g., Herring,2010; Weare & Lin,2000), fewer have applied the technique to empirical studies of nonprofits specifically (e.g., Patel & Weberling,2014;Williams & Brunner,2010).
To build our sample, we utilized Guidestar to identify a subset of the 20 largest (in terms of revenues) disaster relief nonprofits headquartered in the U.S. and operating abroad. Given our focus on trustworthiness and accountability as means to foster public support, we will focus our analysis on key areas from each website, such as the landing/homepage; donate page; and financial information page. To supplement the data derived from web content, we will also evaluate IRS 990 data from 2020 for each nonprofit and include these data as a means of summarizing and comparing organizational profiles.
This research will yield important findings for researchers and practitioners. First, it will uncover ways in which nonprofits utilize their websites to build trust and accountability in contexts where information asymmetry and donor demand are both high, offering insights for practice. Second, given that few studies have applied website content analysis to nonprofits, it will help to illuminate analytic strategies for future research looking to adopt this approach. Third, it will contribute to the body of literature that has sought to build on Hansmann (1980) and others’ claims about the centrality of nonprofit trustworthiness in fostering and maintaining public support, drawing on a new context (international disaster relief) that only continues to grow in relevance as global crises manifest in greater frequency and magnitude.

References

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Authors

• Allison Russell, University of Texas at Dallas

• Lillian Orchard, University of Pennsylvania

• Femida Handy, University of Pennsylvania