21778 Chap.2 Theories of Fundraising and the Resource-Based View
Theories of Fundraising and the Resource-Based View
Three lenses and a resource map
The second Week 1 video sets out three theories of fundraising: resource generation, marketing and social connection, each picturing the donor differently. This chapter compares them, shows how to critique the marketing and social connection lenses, and explains why the subject takes a resource-based approach.
It then applies the five resource types from the Week 2 tutorial worksheet to a community cricket club.
Why this matters for your reports
The resource-based view is the bridge between theory and recommendations. A recommendation that ignores what the organisation can mobilise, such as its volunteers, its reputation or its partners, reads as wishful.
The rubrics for both individual reports reward recommendations that are justified and realistic, and the Fundraising Plan task says outright that recommendations must be supported by the organisation’s financial and non-financial resources.
What this chapter covers
- 01
Fundraising as resource generation
- 02
Fundraising as marketing
- 03
Fundraising as social connection
- 04
How each theory pictures the donor
- 05
Critiquing a fundraising theory
- 06
The resource-based view of the firm
- 07
Five resource types in a case
Worked example · free
Classify a sports body's resources and find the gap
- 1Tangible: the specialised chairs. Human: the two coaches.
- 1Relationships: the hospital partnership. Intangible: the reputation from Paralympic success.
- 1Financial: $8,000 cash, a thin buffer for equipment that wears out.
- 1Need: strong intangible and relationship assets but little cash, so the need is replacing chairs and funding coaching; the reputation and partner are the resources to mobilise.
Key terms
- Resource Generation
- A theory that treats fundraising as instrumental to an organisation’s goals, with donors pictured as philanthropists giving gifts.
- Market Orientation
- An approach that treats fundraising as marketing in a competitive environment, with donors as customers in an exchange.
- Social Connection
- A theory that sees fundraising as the bond holding communities together, with donors as community members.
- Philanthropy
- Literally the love of humanity; in the resource generation view, giving that builds society’s infrastructure to meet long-run needs.
- Intangible Resource
- A non-physical asset such as reputation, history or brand that can help an organisation attract support.
- Tangible Resource
- A physical or countable asset, such as equipment, venues or stock, that an organisation can use to deliver programs or raise funds.
- Competitive Advantage
- In the resource-based view, the edge a firm gains from valuable resources; in fundraising, what makes supporters choose this organisation over others.
Theories of Fundraising and the Resource-Based View FAQ
What are the three theories of fundraising in Week 1?
Resource generation sees fundraising as instrumental to organisational goals and donors as philanthropists. Marketing applies a market orientation, treating donors as customers making rational choices. Social connection sees fundraising as the bond of communities and donors as members who help communities flourish.
What are the weaknesses of the marketing theory of fundraising?
It assumes giving is a rational exchange, yet much giving is emotional or tied to identity and belonging. A market lens can also push an organisation toward whichever segment pays most, even when that segment is not the one its mission serves, which weakens the purpose test.
What are the five resource types used in the tutorial?
The Week 2 worksheet lists tangible, human, relationship, financial and intangible resources, alongside purpose, programs and fundraising needs. Applying them shows what an organisation can mobilise, and the gap between what it has and what its objectives require is the fundraising need.
How does the resource-based view help with recommendations?
It forces a feasibility check before you propose anything. If a recommendation needs grant writers, an alumni list or a sponsor audience, the resource map shows whether the organisation already has them. Where it does not, the recommendation must say how the gap will be filled, or it should be replaced with one that fits.
Assessment move
Make a three-column card for the theories with one row for how each sees the donor and one for its blind spot. Practise the resource map on every case: list the five types, then mark which ones can be turned into revenue and what each would need. Critique by naming the lens, applying it and stating what it misses.
Then test yourself by explaining one case organisation through each theory in turn and noting which recommendation each lens would favour.
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