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Effects of Online Service Providers for Nonprofits on Fundraising Markets: An Economic Analysis

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  • Yasin Ozcelik

    (Fairfield University, USA)

Abstract

The Internet is transforming the way nonprofits have been disseminating information about themselves, interacting with potential donors, and fundraising. In this article, the authors focus on a special type of online service providers for nonprofits (OSPNs) that bring donors and nonprofits together in an electronic environment to help them find a suitable match. The authors investigate the effects of OSPNs on the outcomes of fundraising markets by developing an economic model. They compare the total net revenues of nonprofits competing for donations in two different settings: while nonprofits in the first market use both the traditional fundraising techniques and the services provided by OSPNs, those in the second market implement the traditional method only. They derive analytical conditions under which the first setting provides better outcomes than the second one can generate.

Suggested Citation

  • Yasin Ozcelik, 2009. "Effects of Online Service Providers for Nonprofits on Fundraising Markets: An Economic Analysis," International Journal of Information Systems in the Service Sector (IJISSS), IGI Global, vol. 1(4), pages 15-32, October.
    • Handle: RePEc:igg:jisss0:v:1:y:2009:i:4:p:15-32
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