Toward Increasing Fund-Raising Efficiency: An Exploratory Study Of Use Of The Referral Method By A Non-Profit Organization

Abstract

Obtaining sales prospects from customer referrals is a frequently cited means of improving selling time efficiency. This paper examines the utility to a non-profit organization of similarly using referrals in fund-raising efforts. Referrals were found to be more likely to donate than previous non-donors, and were just as likely to contribute as former donors. However, contrary to generally accepted “wisdom,” current non-donors and donors were equivalently likely to provide referrals. Further-more, those form either source were found to be equally productive leads. Theoretical explanations are discussed.