Exploring Corporate Donation Behavior: A Case Study of Taiwan

ABSTRACT

Given that funding from governments and donations from individuals have declined and are unstable, it is important for nonprofit organizations to identify corporate donors' real motives for making contributions and potential corporate donors' reasons for not making contributions and to design appropriate marketing strategies accordingly. This paper utilized both in-depth interviews and a survey to explore these aspects with Taiwanese firms. The results indicate that, from these firms, Social Responsibility, followed by Top Management's Influences and External Solicitation, are the highest motives. It appears that enhancing Product Sales, Corporate Image, and Sales Promotion or Reducing Pressure from Competitors are not participant firms' primary motives when making corporate contributions. With regard to reasons for not making corporate contributions, the data reveal that Lack of Human Resources is the primary cause that leads participant firms to make no corporate contributions, followed by Insufficient Funds. This paper also develops scales for measuring motives of corporate philanthropy and reasons for not making corporate contributions.

KEYWORDS:

• Motives
• corporate philanthropy
• collectivism
• social responsibility
• Taiwan
• nonprofit organizations
• cause related marketing