More than 1.5 million nonprofits in the United States competed for individual charitable donations in 2013, according to Giving USA. Fundraising in this competitive landscape calls for a rethinking of traditional development strategies.

A blog post by Chicago Booth’s Capital Ideas delves into research from Booth’s Jean-Pierre Dubé, Xueming Luo of Temple University, and Zheng Fang of Sichuan University which suggests that contrary to conventional wisdom, donors respond to fundraising campaigns due to their “self-perception of altruism”—or what the researchers term the “warm glow” derived from charitable giving—rather than a deep-seated belief in the value of the organization’s mission.

See the research here »