Mozambique and Zimbabwe: potentially converging paths

Mozambique, long favoured by Western donors, to their disapproval has recently shown signs of corruption, instability and poor governance and looked to China for help that may not be forthcoming. Zimbabwe, long disfavoured by Western donors, is cooling to China's commercial and political involvement in its national affairs. Both southern African countries may eventually need to reinvigorate appeals for assistance from Western donors, which would come with relatively stringent governance and economic conditions.     

Can Charitable Donations Compensate for a Reduction in Government Funding? The Role of Information

Are private donors willing to replace cuts in government funding? The authors conducted a survey experiment (n = 2,458) to examine how information about government funding affected decisions to donate money to a large charitable organization in the Netherlands. Providing information about actual budget cuts increased the number of donors. Most new donors were recruited among respondents who had processed the information correctly, underlining the importance of effective communication. The magnitude of the information effect was stronger for citizens with lower levels of empathic concern, who are less likely to donate but can be converted into donors. The authors conclude that policy information shapes not only attitudes but also civic engagement outside the political sphere.     

FROM DONORSHIP TO OWNERSHIP? BUDGET SUPPORT AND DONOR INFLUENCE IN RWANDA AND TANZANIA

In this article, I analyze the relationship between budget support and ownership, or recipient‐country control over policy outcomes, by exploring how budget support donors in Rwanda and Tanzania attempt to exert influence over domestic policy processes. In contrast to the conventional rhetoric about budget support, my empirical analysis finds little evidence that budget support decreases the influence that donors try to exert over recipient‐country governments. Instead, semi‐structured interviews with donor and government representatives in each country suggest that the aid modality is often used as a tool by which donors attempt to increase their leverage over domestic decision‐making. In particular, I identify three mechanisms frequently used by budget support donors to influence domestic policy processes: voice amplification, a seat at the table, and a license to ask questions. Copyright © 2013 John Wiley & Sons, Ltd.     

Donors,Primary Elections,and Polarization in the United States

I examine the influence of partisan donors on the district-level ideological polarization of congressional candidates in the United States. I use data from 2002–10 U.S. House elections, which provide for the placement of major party primary winners on the same ideological dimension as their primary, general election, and partisan donor constituencies. Using this unique data set, I find strong evidence that the influence of donors in nominating contests is a source of polarization in the United States. House nominees are more responsive to their donor constituencies than either their primary or general electorates. I also find some evidence that the lack of general election competition affects nominee extremity. In safer districts, Democratic incumbents appear more responsive to donors. However, Republican donors seem to demand proximity regardless of district competitiveness. Overall, the polarizing effects of donor constituencies dominate any moderating effects, resulting in ideologically extreme nominees and, ultimately, members of Congress.     

Representativeness and Motivations of the Contemporary Donorate: Results from Merged Survey and Administrative Records

Only a small portion of Americans make campaign donations, yet because ambitious politicians need these resources, this group may be particularly important for shaping political outcomes. We investigate the characteristics and motivations of the donorate using a novel dataset that combines administrative records of two types of political participation, contributing and voting, with a rich set of survey variables. These merged observations allow us to examine differences in demographics, validated voting, and ideology across subgroups of the population and to evaluate the motivations of those who donate. We find that in both parties donors are consistently and notably divergent from non-donors to a larger degree than voters are divergent from non-voters. Of great interest, in both parties donors are more ideologically extreme than other partisans, including primary voters. With respect to why individuals contribute, we show that donors appear responsive to their perception of the stakes in the election. We also present evidence that inferences about donor ideology derived from the candidates donors give to may not closely reflect the within-party policy ideology of those donors. Overall, our results suggest that donations are a way for citizens motivated by the perceived stakes of elections to increase their participation beyond solely turning out.     

Understanding Motivations of Mega-Gift Donors to Higher Education: A Qualitative Study

Patterns of giving to higher education by individual donors have changed in recent years, with large gifts accounting for an increasing percentage of the total. In light of this shift, understanding the motivations of donors who make very large gifts, commonly known as “mega-gifts,” has become important. Efforts to explore these motivations run into access barriers. This article uses an innovative methodological approach to overcome this challenge. Drawing on the media coverage of mega-gifts, the authors create donor biographies and carry out qualitative analysis of these donor biographies to examine donor motivations and evolution in motivations. The article draws on the existing literature to synthesize a typology of donor motivations and uses this typology to categorize the motivations of mega-gift donors. The identification of additional subcategories under the broad category of impact is a significant contribution of this study and adds nuance to our understanding of mega-gift donors to higher education institutions.     

Delivering public services to the underserved: Nonprofits and the Latino threat narrative

Some politicians employ harsh rhetoric demanding that government deny public services such as food, housing, and medical care to immigrants. While nonprofits assist immigrants in this regard, their work is sustainable only if private donors support them. Using a survey experiment, this article examines whether donors' willingness to support a charity depends on the legal status of its beneficiaries, and the region from which they have come. We find that, in relation to a charity that serves low-income families (control group), donors are less willing to support a charity serving immigrants, but the region from which beneficiaries emigrated is irrelevant. Donor willingness diminishes substantially when beneficiaries are undocumented or face deportation. While shared ethnicity between donors and beneficiaries does not increase charitable support, bilingualism does. In addition, support for the charity rises substantially among Latinx donors who were born outside the US and do not speak English at home.     

Emerging donors and new contests over aid policy in Pacific Asia

Abstract

The rise of emerging donors has unleashed new political contests over aid policy, some of which have occurred at the domestic level. This article locates the special edition's analysis of these contests within the existing literature on emerging donors, draws out the key findings of included papers, and considers their implications for policy. It argues that domestic contests have had significant influence over aid policy in both emerging and established donors, the agendas at work have varied from case to case reflecting countries' different political economies, and aid policies represent a ‘work-in-progress’ rather than an expression of immutable models.     

Donors’ Responses to Profit Incentives in the Social Sector: The Entrepreneurial Orientation Reward and the Profit Penalty

This study uses an online survey experiment to test whether the pairing of profit-seeking with mission-related programs in the social sector attracts or deters donations from individual donors. We test individuals’ response to three types of profit incentives allowed under current U.S. public policy: (1) non-distributed profit to an organization, which is allowed for nonprofit entities; (2) profit to the organization's equity investors and owners, which is allowed under for-profit social enterprise governance charters; and (3) profit to lending investors, which is introduced by social impact bonds, a pay-for-success policy tool. We test trust theory, under which profit incentives deter donors against entrepreneurial orientation (EO) theory, which suggests that donors are attracted to organizations that use innovative, market-driven programs. Findings indicate support for both theories, but the support depends on how the specific profit incentive is structured. Donors support organizations that use profit-generating social enterprise programs—but only when the profits are non-distributable; donors’ support is significantly lower for social enterprises in which owners and equity investors may profit. Importantly however, this negative effect is not found for pay-for-success policy tools where lending investors, rather than equity investors and owners, receive profits.     

Mega Donors’ Perspectives on Philanthropy and Government Relations in Israel

Philanthropists’ involvement in the development and implementation of social policies is a growing yet understudied phenomena. Captured in the model of alternative politics, in which self-provision of public services emerges when citizens face the failure of private and public mechanisms, not only in terms of obtaining sufficiently high-quality services, but also in terms of utilizing political channels to influence public policy, and poses major challenges to the political system. This dynamic of welfare states in recent decades is contested, since while it provides new streams of funding and innovative and professional capacities, it also has potential negative repercussions to democratic processes, equity and universalism of social policies. In-depth interviews with fourteen Israeli mega donors are used to show how mega donors promote relations between philanthropy and government in Israel that are based on voluntary cooptation in which the government regulates the philanthropic activity in Israel. By voluntarily granting the government a mandate to regulate philanthropic activity, the mega donors lead philanthropy into a situation in which philanthropy’s autonomy may be jeopardized and its agendas may be subordinated to the priorities, preferences and business-minded worldview of the ruling elite - the political elite (government) and the business elites (mega donors).     

Donors in transition and the future of development cooperation: What do the data from Brazil,India, China,and South Africa reveal?

How are Development Assistance Committee (DAC) donors evolving their financial flows and aid modalities in response to the growing influence and economic power of Southern BRICS? After presenting the shifting landscape of international development cooperation, we explore five hypotheses about the changing nature of DAC aid allocation patterns and modalities in BRICS countries. In our conclusion, we reflect on the evolution of DAC engagement in Brazil, China, India, and South Africa (BASIC countries) and what it might mean for all official donors. Our assessment is that the changing geopolitical environment for development cooperation is once again privileging economic diplomacy concerns within DAC donors, propelling specific kinds of decisions about the choice of instruments, sectors, and modalities in BASIC countries. It would appear that the administrative practice of foreign aid is increasingly derived from changes within the institutional environment for international development.     

Introducing a New Data Set: Budget Support Suspensions as a Sanctioning Device: An Overview from 1999 to 2014

This article presents a new, publicly available data set covering all budget support (BS) suspensions in the period 1999–2014. The data set covers 239 BS suspensions, involving 18 donors and 40 recipient countries. This article shows an aggregate picture of these suspensions, including the reasons why donors suspended, which donors have been active in suspending their BS, and which countries have been undergoing these aid sanctions. From this aggregate picture some patterns drawn out, substantiate a couple of things that have surfaced in the literature already. With 42% of BS suspensions in the Democracy and Human Rights category, it is clear that democratic governance has been a pertinent reason to legitimize BS suspensions. The large number of suspensions in some countries also indicates the unpredictability of budget support. The data set and the user guide can be downloaded at www.uantwerp.be/budget-support-suspensions .     

NGO Accountability from an NGO Perspective: Perceptions,Strategies, and Practices

Extant research in the nonprofit literature focuses on non‐governmental organization (NGO) accountability, framing it relationally. We examine the interplay of several constitutive elements of NGO–donor relationships based on narratives of NGO executives and other staff: NGO perceptions of accountability and of their donors, their assumptions about donor perceptions of the NGO role and expectations of NGO accountability, and their responses to shifts in donor funding. We argue that perceptions and practices of accountability do not only determine to whom an NGO should be primarily accountable but also shape NGO behavior and alter dependence on donors. As such, accountability is not necessarily a consequence of a relationship, but more likely a constitutive element of the relationship. While a favorable response to donor interests might signify upward accountability, it might also suggest that NGOs are more assertive about managing their institutional environments, thereby mitigating their dependence on donors. Copyright © 2016 John Wiley & Sons, Ltd.     

Funding Global Public Goods: The Dark Side of Multilateralism

The funding of global public goods, such as climate mitigation, presents a complex strategic problem. Potential recipients demand side payments for implementing projects that furnish global public goods, and donors can cooperate to provide the funding. We offer a game‐theoretic analysis of this problem. In our model, a recipient demands project funding. Donors can form a multilateral program to jointly fund the project. If no program is formed, bilateral funding remains a possibility. We find that donors rely on multilateralism if their preferences are relatively symmetric and domestic political constraints on funding are lax. In this case, the recipient secures large rents from project implementation. Thus, even donors with strong interests in global public good provision have incentives to oppose institutional arrangements that promote multilateral funding. These incentives have played an important role in multilateral negotiations on climate finance, especially in Cancun (2010) and Durban (2011).     

Campaign Targets and Messages in Direct Mail Fundraising

Political campaigns raise millions of dollars each election cycle. While past research provides valuable insight into who these donors are and why they are motivated to give, little research takes into account the actions of political campaigns. This paper examines why and how campaigns target habitual donors for political donations. Using the 2004 Campaign Communication Survey, a national survey of registered voters who were asked to collect and send in all campaign mail they received during the last 3 weeks of a campaign, we show that campaigns send donation solicitations predominantly to individuals who have previously donated to a campaign. We also show that campaigns match targeting fundraising appeals to the potential motivations for giving: campaigns target the type of fundraising appeal they use, whether ideological, solidary, or material, to match the socioeconomic and partisan characteristics of the potential donor. The implication of effective targeting is that the “unequal” voice of participation in campaign contributions is not one-sided and simply resource based, but rather that campaigns also contribute to the situation with targeted messages to potential donors.     

Do Donors Penalize Nonprofit Organizations with Accumulated Wealth?

Does current accumulated wealth by nonprofit organizations influence contributions from individuals? Existing research demonstrates that financial reserves aid program continuity during economic downturns. Yet donors, charity watchdogs, and policy makers voice concern about accumulated wealth in nonprofits. This empirical analysis examines whether the expected negative relationship occurs when donors perceive accumulated wealth as excessive. The results support the conclusion that future contributions are negatively affected when wealth levels are deemed excessive. Nonprofit managers concerned that accumulated wealth will diminish donations should consider financial strategies that will allow their organizations to build modest—but not excessive—reserves.     

The Check Is in the Mail: Interdistrict Funding Flows in Congressional Elections

This article analyzes the financial ties between congressional candidates and individual donors residing outside those candidates' districts. Congressional campaigns today rely more heavily on nonresidents than in the past, with contests in the typical district drawing more than two-thirds of individual donations from nonresidents. Empirical results reveal that nonresident contributions are primarily partisan and strategic in nature, rather than access-oriented or expressive/identity-based. Funds are efficiently redistributed from a small number of highly educated, wealthy congressional districts to competitive districts anywhere in the country. Big donors direct funds where they can make a difference for party control of seats, even if those investments are hundreds, or even thousands, of miles away.     

TOWARDS “UNITY IN DIVERSITY” IN EUROPEAN DEVELOPMENT AID THROUGH DONOR HARMONIZATION AND DECENTRALIZED COOPERATION? A CASE STUDY OF FLANDERS AND BELGIUM

Official donors have over the past decade pledged to enhance aid effectiveness by improving donor harmonization. To this effect, the European Union (EU) launched initiatives on a division of labor among its Member States. At the same time, the EU encourages Europe's subnational authorities to engage in their own development cooperation. This however seems to undermine the same harmonization effort. Belgium, characterized by multiple levels of government, illustrates that these two approaches to aid effectiveness—collective division of labor at the national level and decentralized cooperation at lower levels—are only partially compatible. In partner countries where both the federal Belgian and regional Flemish governments are active donors, Belgium's composite aid is poorly harmonized. A principal–agent framework helps to explain such selfish positioning. This article argues that a higher degree of complementarity and harmonization among Belgium's various authorities is feasible, albeit in forms that are specific to recipient country and context. As both donors are not so much competing in aid supply policies but rather in terms of supply management, such technical arguments may assist in lessening the political pressure to selfishly emphasize diversity over unity. Copyright © 2013 John Wiley & Sons, Ltd.     

Foreign aid in the making of economic policy in Sri Lanka, 1977–1983

The paper analyzes the interaction between inflows of foreign aid and the character of the economic policies pursued by the Sri Lankan government between 1977 and 1983. Aid did not support the policies of liberalization and balanced public investment that were preferred by donors. Rather it enabled the Sri Lankan government to push forward with the Mahaweli irrigation scheme on a scale that worked against both liberalization and other components of public investment. The process that led to the adoption and funding of the Mahaweli scheme and continued support for that scheme even after its impact on the overall economic program had become apparent is examined in detail, with particular emphasis on the decisions and behavior of both the Sri Lankan government and of aid donors.     

Causal inference and American political development: the case of the gag rule

Public Choice - We extend previous work on the role of politically motivated donors who contribute to candidates in an election with single dimension policy preferences. In a two-stage game wherein...