The Heterogeneity of Competitive Forces: The Impact of Competition for Resources on United Way Fundraising

Abstract

How does competition for resources affect the fundraising performance of local United Way (UW) affiliates? Drawing upon population ecology, we hypothesize a nonlinear relationship between competition and organizational performance. Using a 21-year panel data set that includes UW campaign data, contributions to specialized fundraising organizations, and contributions to the general population of nonprofit organizations, we estimate a fixed effects regression model. We find that the effect of competition differs depending upon the degree of niche overlap. Contributions to organizations with greatest niche overlap have a negative effect on contributions to local UWs. Consistent with population ecology, other types of fundraising organizations that have less niche overlap show beneficial relationships at certain levels of giving. However, few communities reach the philanthropic level at which benefits of competition occur.

Keywords

competition fundraising population ecology philanthropy United Way

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