The Role of Web Assurance Seals in Nonprofit Giving

• In Event: The Value of IT and Web Assurance

Abstract

This study examines the characteristics of non-profits that choose to engage web assurance seals as well as how these seals impact donations. Conducting this study in the non-profit sector provides unique advantages that allow us to exploit methodologies that are not available when studying web assurance seals in the for–profit sector. Combining the archival data of 2000 of the largest charitable organizations with corresponding hand collected data on their use of web assurance seals allows us to empirically study the characteristics of charitable organizations using web assurance seals, as well as the benefits of providing donors such assurances. We find that larger, less efficient organizations that spend more on fundraising and IT are more likely to possess a seal. Interestingly, we also observe that our size finding weakens as organizational size increases. We interpret this result to mean that very large organizations, with the most established reputations, reduce the need for web assurance seals. In terms of consequences, we find that web assurance seals are associated with higher direct donations, consistent with donors rewarding organizations that display a web assurance seal on their online donations webpage. In particular, we find that organizations displaying a web seal receive 42 percent more in donations annually.

Authors

• Joseph Garrett Canada, Rutgers University - Camden

• Erica Harris, Rutgers University - Camden