Key Words

Stewardship

Stewardship is a fundamental principle of managing and guardianship of resources entrusted to an individual or institution. It implies a strong sense of responsibility and accountability beyond control or possession, including the moral and social implications of using resources. Based on feudal and theological notions in the past, stewardship has developed into a more general idea of social responsibility and the interdependence of organizational and individual well-being.

Stewardship, as it is applied to nonprofit organizations, is an essential relationship management technique that goes well beyond the boundaries of just the solicitation of a financial gift. It entails showing a dedication to accountability, transparency, and ethical decision-making in the utilization of resources while at the same time building and nurturing relationships with volunteers, donors, and other stakeholders. Nonprofit organizations must disclose in-depth information regarding their financial health, governance, and program outcomes (Hon and Grunig 1999). This involves making their IRS Form 990 accessible to the public and periodic progress reports on their efforts to fulfill their mission. Nonprofits need to do more than report what they are doing; they need to show how their actions impact those they serve (Pressgrove 2017). This can be done through compelling storytelling, highlighting success stories, and demonstrating proof of impact. Nonprofits must also engage their supporters as individuals rather than simply as donors. This involves thanking them for their gifts, recognizing their particular interests and motivations, and making them feel respected partners in the organization's mission. Nonprofits ought to publicly acknowledge their donors' contributions, big and small. This can be achieved through donor walls, newsletters, social media, and other methods of public recognition.

Nonprofits need to develop long-term stewardship with stakeholders rather than transactional ones. This encompasses regular communication, asking for feedback, and inviting stakeholders to participate in events and activities. Stewardship relies on a range of critical theoretical foundations, such as resource dependency theory, which calls for coordinating relationships with external stakeholders, especially those controlling vital resources (Kelly 1998). It acknowledges that organizations rely on external resources and must develop relationships with those who control them. Nonprofits are highly susceptible to resource dependence because they usually depend highly on external funding sources. Stewardship is necessary to sustain those relationships positively and ensure the organization's long-term viability. Stewardship is also one of the underlying elements of excellence theory, which focuses on creating win-win relationships with stakeholders, i.e., donors (Hon and Grunig 1999). It suggests that organizations attempt to develop a sense of common purpose and value with stakeholders, generating a feeling of commitment and trust. Lastly, stewardship is an expression of social responsibility theory, which demands that organizations be accountable for the effect of their actions on society (Kelly 1998). It recommends that organizations go beyond the immediate impact of their activities and try to contribute to society positively.

Works Cited:

Kelly, K. S. Effective fund-raising management. Mahwah, NJ: Lawrence Erlbaum, 1998.

Hon, L. C., & Grunig, J. E. Guidelines for measuring relationships in public relations. Gainesville, FL: Institute for Public Relations, 1999.

Pressgrove, G. “Development of a Scale to Measure Perceptions of Stewardship Strategies for Nonprofit Organizations.” Journalism & Mass Communication Quarterly, vol. 94, no. 1, 2017, pp. 102–123.

Cultivation

Cultivation is a complex and dynamic process that goes far beyond just interactions with donors. It is a subtle process of relationship development, strategic communication, and resource development that has been intentionally designed across numerous domains. Cultivation, based on a farming metaphor of the effort in cultivation, has developed into one of the essential frameworks through which we can make sense of organizational, primarily nonprofit stakeholder relationship establishment and maintenance and how it is something that requires effort (Leonhardt 2011). This is not just an issue of securing Donors but really about establishing deep-rooted and significant relationships that allow organizations to develop and thrive in the long term and retain donors, volunteers, and clients long-term. Successful cultivation takes purpose, patience, and a long-term commitment to thoughtful interaction and presence within their communities.

Unlike superficial networking, which involves establishing contacts for the first time, cultivation is a procedure and an ever-changing process depending on an organization's mission. It is a sequence of strategic behaviors that engage and foster possible stakeholders interested in the organizational cause. In Polivy's (2014) study, cultivation is a six-phase lifecycle process: initiation, building relations, enhancing commitment, deepening involvement, strategic alignment, and long-term partnership. The phases cover how cultivation evolves and deepens, and activities must be ongoing to build relationships and respond to each stakeholder's changing needs. Those that do not come to an understanding of the lifecycle process will not create long-term, solid partnerships. This is why it is so essential for organizations to practice thoughtful cultivation when building community partnerships. 

Cultivation is not just a matter of engagement but actually the establishment of trust, credibility, and loyalty. Waters (2009) speaks about how to practice good cultivation involving an active application of access, positivity, openness, assurances, networking, and problem-solving approaches to cooperation. These conditions explain why cultivation requires organizations to proactively act and communicate with their partners, continually showing stakeholders the value and dedication of not only their relationship but also the mission everyone is there to support. Without these deliberate efforts, relationships are not going to be as profound and cannot be maintained, which will significantly impact an organization's achievement of goals as well as reputation and trust within its community. The same foundations also reside in the idea of stewardship since organizations need to nurture relationships carefully for long-term achievement. Cultivation and stewardship are partners because they are centered on relationship-building, openness, and thoughtful involvement. Nonprofits depend on these processes to maintain donor loyalty, engage volunteers, and provide accountability to their constituents. By viewing cultivation as an essential, multi-faceted effort instead of a transactional process, organizations can build more authentic, lasting relationships to ensure their overall success and viability.

Works Cited:

Leonhardt, Thomas. “The New World of Philanthropy.” The New York Times, 2011.

Polivy, John. “The Cultivation Lifecycle: A Framework for Building Sustainable Stakeholder Relationships.” Journal of Nonprofit Management, vol. 53, no. 2, 2014, pp. 123-145.

Waters, Richard D. “Increasing Fundraising Efficiency Through Evaluation: Applying Communication Theory to the Nonprofit Organization-Donor Relationship.” Nonprofit and Voluntary Sector Quarterly, vol. 40, no. 3, 2011, pp. 458-475.

Philanthropy 

Philanthropy, in its simplest definition, is giving that is motivated by a desire deeply rooted in some kind of motivation to want to do something for someone or something other than oneself or to advance a cause bigger than one's self-interest but still in areas one is passionate about. The idea of philanthropy in nonprofit organizations covers a broad range of motivations, from enlightened self-interest and personal gain to pure altruism and an extreme sense of social responsibility. Philanthropy can take a wide range of forms, such as donations of money, time such as volunteering, talent, such as offering one's skills to further a mission, and activism for social causes, such as voting for legislation that supports the organization's mission, although these are just some examples. Historically, philanthropy has been inextricably linked to religious and social values that stress the obligation to give to others and advance the common good. Nevertheless, philanthropy has become increasingly entangled with market forces; some examples are charitable giving and economic interests and how they now coexist to further organizational success.

Nonprofits working to recruit and retain donors need to understand the motives of their partners. The research shows us that giving is "U-shaped" along the income spectrum, with the lower and higher end giving more income to charity (Andreoni 2006). Tax codes, including charitable deductions, influence incentives to give significantly for some. Such policies can impose difficult trade-offs on donors, especially high-income donors, who have to balance the usefulness of charitable giving with the after-tax yield of other investment options (Kumar and Chakrabarti 2021). Nonprofits utilize numerous fundraising techniques to solicit gifts, such as direct solicitation, donor recognition programs, capital campaigns, and special events. Their effectiveness can be impacted by the organization's mission, reputation in their community, and shifting donor behavior landscape due to factors such as the economy or politics. The impact of Philanthropy on market forces is significant. It creates questions regarding the ability to disrupt current power dynamics and advocate for social change to create more equitable giving experiences. The beginning of social entrepreneurship and impact investing, which also aim to produce both social and financial returns, echoes the diversity of what philanthropy can look like as well as the market (Van Steenburg et al., 2022). To have successful philanthropy frameworks, organizations also need to practice cultivation and stewardship because these things go hand in hand with making organizations successful and long-lasting within their communities.

Works Cited:

Andreoni, James. “Philanthropy.” Handbook of the Economics of Giving, Altruism and Reciprocity, vol. 2, edited by Serge-Christophe Kolm and Jean Mercier Ythier, Elsevier B.V., 2006, pp. 1201–1270.

Kumar, A., and S. Chakrabarti. “Charity Donor Behavior: A Systematic Literature Review and Research Agenda.” Journal of Nonprofit & Public Sector Marketing, 2021, pp. 1–46.

Van Steenburg, Erin, et al. “The New World of Philanthropy: How Changing Financial Behavior, Public Policies, and COVID-19 Affect Nonprofit Fundraising and Marketing.” Journal of Consumer Affairs, vol. 56, no. 3, 2022, pp. 1079–1105.