Intrinsic and Extrinsic Perceptions:

A Look at Why People Donate Money and Time to Nonprofits

Kevin Hsia
PRAD 540
6/11/13

Abstract
This research report seeks to explore the reasons and motivations for why people
donate money and time to non-profit organizations similar to Little Sisters of the Poor. Such
organizations center on the philanthropic care of the disenfranchised and elderly as guided
under a Catholic-based philosophy. In understanding how people perceive or relate to such
non-profits, the Little Sisters can benefit by adapting or improving their organizational practices
to produce experiences, emotions, or attributions that will increase awareness for their
mission.
Introduction
The Little Sisters of the Poor is a Roman Catholic congregation centered on providing
care to impoverished elderly. Centering on the Chicago branch in Lincoln Park, it is but one of
the many chapters that represent an international body that operates in that operates in over
30 countries around the world. Despite a strong international reach, Chicagos Little Sisters
have been struggling with a lack of awareness in the community and donations to further their
organization. Much of the processes rely on one-to-one interactions consisting of door-to-door
collections from the community and corporate benefactors. Though there is a general good will
expressed by the majority of current donors, the Chicago Little Sisters have not been able to
expand the scope of their reach generally due to lack of awareness. Because of the many non-
profit organizations in the Chicago area, the Little Sisters can benefit from additional research
on potential donor and volunteer audiences in order to raise awareness and foster engagement
with the organization.
Literature Review
1. Predictors of Time Volunteering, Religious Giving, and Secular Giving: Implications for
Nonprofit Organizations
Presented by the University of Texas at Austin, this source conducted a formal study
that examined characteristics associated with time volunteering, religious giving, and
secular giving. By positing a theory of volunteering in a three-part hypothesis based on
human capital, cultural capital, and social capital, a sample of 7,189 was obtained to
reflect several correlations and implications. Five hypothesis were made: (H1) Education
(human capital) will be positively associated with both time volunteering and religious
and secular giving; (H2) household income (human capital) will be positively associated
with religious and secular giving; (H3) both generative qualities (cultural capital) will be
positively associated with secular giving, and religious identification would be positively
associated with religious giving; (H5) perceived social integration and the number of
meetings attended (social capital) will be positively associated with time volunteering
and religious and secular giving. The source succeeded in providing a detailed account
in which analysis of the data revealed several positive correlations for the five
hypotheses. More importantly, suggestions for nonprofits on targeting, recruiting, and
maintaining volunteers and donors can be gleaned from the report.
2. The Motivation and Limits of Compassion

In a Judeo-Christian perspective, this source addresses motivation behind peoples
philanthropy and the limits of their compassion. Framed by a biblical parable, the Good
Samaritan, the author conflates an analysis of psychology and natural principles of
human nature. By further defining the distinction of what it means to be Good or
Godly, the author succeeds in explicating an apt reaction for good will, charity, or
altruism. The role of religion is especially emphasized as a motivation for love from and
on behalf of God and a reflected concern for people in general. The Little Sisters would
benefit greatly by understanding its more religious or Catholic-aligned donors and
volunteers by addressing them in relatable ways. The source, perhaps in an unintended
way, shows how there can potentially be a divide in how the religious can see their
philanthropy in different light in a secular and nonsecular way. Taking the analysis a
step further, the author provides insight into the boundaries of service or volunteerism.
In order to fully appreciate the mentality of a contributing Catholic, the Little Sisters
must do well to also understand what can be expected from volunteers and donors. In
this way, the most effective programs utilizing the outlined principles can appeal to the
most efficient donors.

3. Finance and economics: Looking good by doing good

Published by the Economist, the article seeks to show the distinction between private
and public generosity. An incentive-basis seems to show that self-interest governs most
actions of people. Especially when it comes to understanding peoples motivation in acts
that are costly to the doer and primarily benefit others, the article posits that people
tend to want to look good by doing good. This is what economists call image
motivation. The Little Sisters would find this useful in approaching its biggest
benefactors. The organization seems to take a more discreet route when managing its
donor relations, but as this article points to the contrary, some trumpeting of donor
efforts may prove beneficial in the long run. The management of current donor relations
would be a useful strategy for the Little Sisters long term goals.

4. How Nonprofits Grow: A Model

This source provides a foundational groundwork in understanding how a nonprofit can
be structured for growth. Its emphasis lies in how nonprofits can be structured using
cross subsidization. By diversifying its approach in fundraising, the nonprofit can set long
term goals that continually fuel its original mission. In its analysis of nonprofit setup, it
does a good job of presenting reasons on why people donate. Strategies in this section
can be gleaned for the Little Sisters effective use. By going through the rudimentary
principles behind an organizations success, the Little Sisters can begin to see
themselves as something more than just a religious sect doing a specialized and
localized kind of work. External concepts such as trust as perceived by the public are
heavily emphasized and something that the organization can successfully posture.

5. Why People Give: Pride of Association
Fundraising director heavyweight Walter R. Myers lends his expertise to help provide a
concise guide in understanding why people donate. For Myers, pride and self-interest
are the chief motivators that lead people to philanthropy. People want to be proud of
what they are representing. Less so than altruism, but more so in personal interest,
organizations like the Little Sisters may find this useful in a more mild takeaway how
can those that tend to want to represent a larger community and may want to remain
anonymous enjoy donating? More so, it is about understanding the greater range of
donors and how the Little Sisters can better prepare their organizational marketing.
Method
Qualitative and quantitative research was conducted to understand the peoples experiences
with nonprofits. The one-to-one interview (qualitative) was useful in discovering a deeper
insight into the connections between people and nonprofits. A larger sample survey
(quantitative) provided a pool of data in which analysis derived insights from comparable
factors.
One-to-One Interview
Sampling Method
o A selection of four subjects was chosen to be interviewed. Respondents were
preferably those who were members of the Catholic Church. Four interviews were
conducted to those living in the Chicago area. Nonprobability, convenience sampling
was utilized because of the specified location. Warm-up questions gauged the
respondents involvement in charities and allowed for further exploration. Each
interview was conducted within the same week of April 23-30, 2013. The gender and
age of each respondent is given below.

Female, 32
Male, 23
Female, 27
Female, 65

Results
o The interviews indicate that the older and more established the respondent, the
more likely they were to donate money than time. A preference over supporting
local charities can be observed. In the case of my respondent (male, 23), he was
younger and more willing to donate time than money. For those that had time
constraints, volunteering was a more viable option. Common themes show that all
respondents wanted to know where the donation money goes whether it is
channeled properly to the needy and to pertinent programs and not to administrative costs.
As much transparency as possible allowed donors to comfortably support the organization.
Closely tied is the clarity and strength of an organizations mission.

In terms of solicitation, it seems that most respondents indicated that the more emotional
the appeal, the more effective it was in getting attention Respondents also indicated that
organizations that presented messages that one can find personally relatable are more likely
to listen and express interest. In terms of how the organization can best market themselves,
word of mouth and actually hearing from someone personally involved in the organization is
best. Social reinforcement due to group interest in a mutual charity would provide more of
an incentive to support. In the case of my participant, he would be more apt to listen to the
cause when an authoritative figure or leader in the church readily talked about it to the
congregation. Other responses showed that people that were working on the ground level
provided a more intimate testimonial to nonprofit marketing and thus would provide a
convincing pull. Lastly, general consensus positively remarked that almost all would
consider donating to a Catholic organization outside of their church.
Survey
Sampling Method
o Convenience sampling was once again utilized to reach out to respondents
bound closely to the Chicago area, the focus was once again meant to target
respondents who could contribute a localized experience of nonprofits.
However, based on my set of data collection, some snowball sampling was also
utilized via recommendation and word of mouth. Conducted between May 10
th
,
2013 to May 20
th
, 2013, 36 questions were produced via online survey and each
survey was electronically emailed or messaged via a shareable link.

Results
o In total, 396 people successfully completed the survey. 246 of the total lived in
Chicago. The mean, mode, and media of age was analyzed:

Mean: 31
Mode: 24
Median: 26
The higher mean indicates that there are older outliers in the respondent pool.
The mode or median represents a closer depiction of the sample. Because there
were several respondents who were above 60, the mean of the data was raised.
To start, it is necessary to frame the extent of the problem that Little Sisters of
the Poor face: low awareness and difficulty in acquiring donor or volunteer
interest. Drawn from the data, Table 1 shows the percentage of those overall
who have heard of the Little Sisters. Only 14.2% of the total 396 have heard of
the Little Sisters.

Table 1
When looking at the local awareness level for those in Chicago only, the
percentage actually is smaller. Table 2 shows that only 12.2% of the 296 in
Chicago have heard of the Little Sisters.

Table 2
It is clear the Little Sisters have an awareness problem. Given this, several
positives do come to light when addressing the potential. In Table 3, there is a
general moderate-high degree of people who do care about certain causes. The
Likert Scale was used. With the rating of 4 representing neutral on a 1 to 7
scale of strength, it is clear that people express moderate-high degrees of
interest or agreeableness to all of the given statements. That said, care for the
local community and care for the elderly in the community rank the highest of
the mean. There is intent and at least openness to help with charity efforts.
Table 3
1 (Strongly Disagree ) - 7 (Strongly Agree)
Insights can be immediately drawn to show why people donate and why people
volunteer. Looking at Table 4, there were 210 people that actively donated.
Greater weight was attributed to general goodwill and altruism: people donated
because they knew it would help someone. General consensus showed a 6.27
out of a scale of 7 in its importance. Having an emotional connection to an
organization was also rated highly at 6.19. The action of donating is also fulfilling
with a 5.83 weight out of 7.

Table 4
1 (Strongly Disagree ) - 7 (Strongly Agree)

Now looking at why people volunteer, Table 5 shows similar connections that
can be made. Out of the 205 that volunteer, the mean population generally
favors its fulfillment in volunteering, helping someone, and having an emotional
connection with the organization. Throughout both groups of people that donate
and volunteer, simply feeling good is a good baseline marker of why people
enjoy working with organization.

Table 5
1 (Strongly Disagree ) - 7 (Strongly Agree)

When comparing the importance of people donating to feel good or having an
emotional connection to the organization, it can be seen in Table 6 that having
an emotional connection is weighted at a 6.19, thus more important than
donating to feel good.

Table 6
Lastly, religiousness and altruism is compared to see if there is a correlation
between the two? Looking at Table 7, it can be seen that there is .003
significance. This means that there is no statistical significance between the two.
This is a high general indicator of the effect of religion on volunteerism and
donations.

Table 7

Discussion
From the qualitative and quantitative data, it can be seen that there are some unifying
factors behind why people choose to donate time and money. From my interview respondent,
donating time was much more favorable than donating money. Religion did not play as high of
a role in determining his contributions to charities. Similarly, the quantitative data in the survey
shows that there is a nonexistent correlation of altruism (as a blanket term representing
willingness to volunteer and donate) and religion. The 23 year old respondent in the interview
was similar to the modal pool age in the survey (24). Because he saw his involvement in charity
as an extension of his personality and goodwill, trusting the charity became a major identifier in
how much effort he was willing to put in. According to Table 3 and Table 4, an emotional
connection and being able to do good are ranked important when compared to the other
statements. Feeling good takes on a more tertiary role as people see it as a reward of their
efforts. Community support and care for elderly are important both to the interview
respondent and reflected in the survey results.
The current climate in which the United States is wrestling with can be advantageous for
nonprofits. According to Choi, giving to religious organizations tends to increase in recession
years (95). Nonprofit organizations benefit more when there is strategic targeting of those
likely to volunteer or donate. Reasons people tend to donate are attributed mostly to
emotional signifiers. People perceive an organization in certain ways and thus identify with
them accordingly. It is clear that the Little Sisters must develop a strategy to further bolster the
reasons why people should donate and volunteer in their communications and programming.
Several approaches can be taken to begin addressing the issue of what the Little Sisters can do
to adjust their organization to better align with the emotional intelligence of those that are
interested in donating or volunteering.
It is without a doubt that Catholicism is an ingrained quality in the Little Sisters identity
and mission. On a broader scale, the survey data indicates that people are willing to donate
time and effort, but religion is not necessarily a qualifier for those intentions. Both nonsecular
and secular communities exist and if the Little Sisters wish to gain more varied donations, an
appeal to both communities may be necessary. In furthering community relations, Choi
supports secular giving by suggesting that secular nonprofits that partnered with faith-based
organizations reported greater benefits in terms of volunteer use and retention (113). More
importantly, by appealing to trust within a community, the organization can do better to appeal
to a wider range of interest.
This trustworthiness is in part attributed to transparency. The clearer the organization is
about their funding and allocation of resources, the more trustworthy the organization is.
According to James, the legal constraint of being a nonprofit can allow nonprofits to capture
donations if the donor is in a position to monitor the institution (356). By providing something
as simple as weekly or monthly newsletters, the appearance of continual updates and vetting of
organization reports in the media allows donors to feel comfortable in their support. At the
same time, this method operates as a marketing tool in which new potential donors can receive
more current information.
The sense of connection or trust between people and organizations can be further
explored in Chois explanation of an organizations culture capital. She portraits the donor as an
individual whose sense of moral obligations and social responsibility, altruistic values, and
empathy are also associated with charitable giving (97). It is important to note then that the
role that the Little Sisters must take is an active one in which they must merge their own
identity and mission with those that of the individual.
That said, the Little Sisters must do well to also recognize that a portion of donors expresses
self-interest and personal gain as a reason to donate. As seen in Table 4 and 5, there is an
underlying significance in responses in which feeling good is tertiary but relevant emotion
when donating. Choi states that by seeking personal benefits from organizations, people can
make business contacts or learn skills that may be useful for paid employment. Especially for
the range of 20 to 30s, this is relevant to understand. For middle aged or older adults, reasons
for volunteering can reflect their desire to remain active and connected with other people, to
feel useful and productive, to seek a sense of purpose or meaning in their lives by doing good,
and to escape negative feelings (97).
Myers article emphasizes personal vanity in his article. This includes polishing up the
image of the Little Sisters. Myers writes that the organization must be presented consistently in
the most favorable light and also personal brand monitoring must exist to limit sending out any
negative signals. People ultimately want to give more to people like themselves (11).
Because of the unifying denominator of Catholic experiences found in the in-depth
interview, the rather homogenous pool of respondents indicates that cogent conclusions can be
made in regards to drawing insights about Catholic donors. My respondent, the 23 year old
male, as well as the other three interview respondents, showed a desire to see their efforts
situated in a fuller social context. How far will their money go to help? What will happen if x
then y? How will peoples lives change? If the Little Sisters can comfortably and directly address
these questions, people will be more apt to listen and participate. When organization actions
are public, and when efforts culling donations are made public, people tend to give more. This
distinction of private versus public generosity outlined by the Economist show that publicized
incentives or rewards can further drive donor interest and participation. Once again, the simple
action of placing a donor plaque on a building or making an announcement in some form of
event or media placement would show appreciation to these benefactors.
By understanding a general composite of the sentiment and thinking behind donors, the
Little Sisters can succeed in tailoring their organizations messages to better attract, retain, and
develop a flourishing base of donors and volunteers.

Appendix
Choi, N.G. , DiNitto, D.M. (2012, June). Predictors of Time Volunteering, Religious Giving, and
Secular Giving: Implications for Nonprofit Organizations. Journal of Sociology and Social
Welfare, 39 (2).
Cornelius, E. (2013, Mar 05). The Motivation and Limits of Compassion. Theological Studies, 69
(1), Art. #1189. Retrieved from http://dx.doi.org/10.4102/hts.v69i1.1189.
Finance and economics: Looking good by doing good; economics focus. (2009, Jan 17). The
Economist, 390, 76-76. Retrieved from
https://login.ezproxy1.lib.depaul.edu/login?url=http://search.proquest.com/docview/2239883
62?accountid=10477.
James, E. (1983). How Nonprofits Grow: A Model. Journal of Policy Analysis and Management,
2 (3), 350-366.
Myers, W.R. (1990, May/June). Why People Give: Pride of Association. Nonprofit World, 8 (3),
11-12.



Interview Guide
Research question: How can the Little Sisters of the Poor raise awareness for their mission as
well as increase donor funding?
Respondents: Members of Catholic Church.
Casey Merchant, 23, Single, Retail Associate
Warm-up Questions
1) Do you currently volunteer or donate to a charity?
Not currently. In the past, I worked at a Christian camp in Wisconsin. Camp Grow. I
took care of middle school kids and we did a range of activities. Basically being their
chaperone. I also taught Christian lessons about how Jesus is likened to be a shepherd
figure.

2) Are you active in your church community?
Yes. I worked for Bibles for America. The job wasnt much, but I was responsible for
getting people to sign up for free bibles. It was difficult to approach new people and talk
about religion on campus especially. U of I has a lot of Christian organizations but I feel
that its too saturated with too many different organizations recruiting. I got a lot of
quick nos and many were just not interested. There was the occasional open person. I
would invite them to a few of the church groups and events. They gave me their email
and we contacted them that way.

Do you volunteer with outreach programs like PADS, soup-kitchens, food drives,
etc. ?
No, I currently do not aside from activities in church.
Questions
1) What are some of the largest charities or causes of the Catholic Church that you are
aware of?
I know of some of the soup kitchens like the one at DePaul. I have occasionally helped
out there.

2) Do you donate to these causes? Or do you get involved?
I definitely prefer to donate time and energy to causes. Ive cleaned tables, handed out
food and dishes. More than anything, Ive discovered the benefits of charitable giving. It
gives a sense of community and ultimately feels good. Its direct and it feels good to
give.
What prevents you?
I like the most direct impact. Its something I can see and understand, and probably the
most efficient impact. Money is sometimes not as accountable it goes to
administration and any other administration costs. It can be an inefficient use of
charitable funds.

What draws you?
I would say the more detailed the direction of funds, the more understandable and fair
the allocation to those who need it. It often comes down to percentages. But mostly I
would say I need to be reassured that the money is going primarily to people that need
it.

3) Would you consider donating to other Catholic organizations outside of your church?
I go to St. Johns Catholic Church right now. Ive considered it but never made the leap.
Why or why not?
Because of my deep roots in the catholic community. Catholics are the most organized
and goal oriented kind of people usually. Mostly because I like remaining faithful to my
group.
4) Have any charity solicitations successfully prompted you to donate or volunteer? What
about their message moved you?
Yes. Younger kids were working on State Street to promote and fundraise for 3
rd
world
kids. They were asking for money for like 10 cents a day to cover them per day.

5) When you hear about a charity you are unfamiliar with, what are the most important
things you want to know about them before considering getting involved?
Mission. I definitely need to know about what theyre about. If their mission and cause
are in line and relevant with modern issues, its a plus. Id like to also hear about a
recruiters personal involvement. Like if they personally knew about how the
organization worked and were actually passionate about it. If I believe in their cause.
their story, Id be happy to listen to something real. I want to see results from people
doing real work.
6) How do you feel about receiving solicitations from charities?
It definitely puts my life into perspective the way I live can make me feel guilty
instead of donating to child to give them food for a couple of days. I definitely respect
people that can solicit and educate people on the street. Often times though, their
approach can make me really nervous. I dont know why but it pressures me a lot seeing
them approach me. It stresses me out. Im still financially dependent so I wouldnt be
beneficial to a child necessarily. I think in general I feel guilty, but also more aware
about the issue.

7) What kinds of solicitations are most compelling?
Definitely emotion especially when it involves another life. Like when Im approached
by those people soliciting about donating for children. They had their cause down and
had a cover for every one of your excuses. But if I see a before and after situation, Im
definitely more aware of the effects of the organization. If I can see what the charity did
before the work and afterwards, the effect on the community or project or individual
can be more credible. One of the issues I was approached with issues of Racism in the
South. If its something underrepresented and somewhat of a new perspective, Im
definitely more curious.
8) What type of marketing outlets do you think gets the attention of the Catholic
community in Chicago best?
I would say priest support, er, papal support. Basically if there is a church leader, youth
group leader, and enough campus outreach, people are definitely more likely to check it
out. I like checking out the cultural centers where information is exchanged.

9) How interested would you be in a Catholic charity in the Chicago area that has a
successful, long-standing reputation for caring for the elderly poor?

It is an important service. They often are forgotten. They barely have anyone come in
and bring delight. I think it would feel good to break up monotony and bring some
positive energy. It sounds cooler than going in and taking care of them. Ultimately I
would love to plan fun activities for elderly to participate in.