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use symbolism and principles of dramaturgy to help the organizations, clients, and causes resonate persuasively with donors.

Theory's Role in Fundraising Practice

Until recently, fundraising has primarily been learned through practice (Duronio and Tempel 1997). How can theory clarify and improve the practice of fundraising? And what is the role of theory more generally? Maxwell (2013) offered two metaphors for understanding how theory is more than abstraction. Theory can operate as a spotlight, isolating and highlighting facets of an idea (or a practice) or enhance understanding of that idea or practice. Theory can also provide a framework to organize thinking about complex ideas, processes, or systems. Collecting evidence without some idea of how it fits together results in a jumble. Theories can be the hooks on a wall that let us place each item in relationship to others and see patterns, which may similarly help people understand what is happening and apply those insights. Maxwell (2013, 49) called this second metaphor a coat closet.

      Let's add a third metaphor. A collection of theories unattached to situations is like a closet full of clothes on hangers – each may be individually well crafted, but while they hang there, they are disconnected, not fulfilling their purpose. If piled on all at once, their purposes are muddled, the potential splendid function of each obscured by the indiscriminate invocation of all. The thoughtfully styled individual selects an item (or items) appropriate for the purpose. Similarly, a collection of theories is not enough, but the perceptive selection and application of a theory activates its functional value.

      This chapter provides a “closet full of spotlights.” Rather than a single unified theory of fundraising, it draws on several theoretical approaches that offer diverse ways of thinking of fundraising, each of which may prompt examination of specific aspects and new insights about what we're doing.

Theoretical Approaches

      The rest of the chapter introduces theoretical approaches that have been used to explain aspects of fundraising practice – what is happening, how it happens, and why. It begins by addressing macro systems theory, boundary spanning, and resource dependence. Next, it shows how gift theory and reciprocity apply to fundraising. Then, it describes the identification theory of care and how social identity theory contributes to philanthropic choices. Finally, it shows how a dramaturgical approach and symbolic interactionism can be helpful in understanding fundraising.

      The Big Picture: Systems Theory, Boundary Spanning, and Resource Dependence

Systems theory provides a fundamental theoretical base for understanding fundraising (Kelly 1998; Tempel 1991). An organization that isolates itself from its environment can be considered a “closed system.” One that is influenced by social and economic trends and needs, and exchanges resources within its community is an “open system.” Simply put, charities do not exist in isolation. They exist within an environment and interact with that environment (Scott and Davis 2006). Typically, strong fundraising programs thrive in relatively open systems (see Chapter 11).

      Individuals who raise funds for an organization function as boundary spanners, linking the organization with important resources in the external environment (Kelly 1998). Boundary spanners are essentially diplomatic liaisons who work to align the interests of those within and those outside the organization. Fundraisers seek to develop financial resources for an organization through cultivation, solicitation, and stewardship activities. They also listen to the interests and concerns of potential donors and look to find good linkages with the organization's mission. By interacting with potential donors on behalf of their organizations, fundraisers perform an important boundary‐spanning role.

      Resource dependence theory explains why fundraising occurs and suggests some common organizational dynamics. The theory states that for organizations to survive, they must acquire necessary resources, and maintain their supply (Pfeffer and Salancik 1978). This means that organizations are not wholly autonomous in their financial decision‐making but rely on their environment for various resources. The greater an organization's dependence on voluntary contributions, the more volatile its revenue environment is (Carroll and Stater 2009), and the more likely it is to devote its time and personnel resources to developing financial resources (Heimovics, Herman, and Jurkiewicz Coughlin 1993; Hodge and Piccolo 2005; Nonprofit Research Collaborative 2015). This illustrates the importance of skilled fundraising.

      Dependence on others leads to power considerations. When funding is scarce, the charity is more vulnerable to the demands of prospective funders, which may affect the organization's decision‐making autonomy. For instance, nonprofits that receive relatively high levels of government funding are less likely to have nonprofit boards that strongly represent their client constituents (Guo 2007). This dependence dynamic is also seen in an increasing focus on donor‐centered philanthropy, particularly for major donors (James III 2016c). If a donor (or grantor) is providing significant financial support, they may be keenly interested in affecting the design and administration of that program or the organization as a whole, and less attentive to the needs of the community or the organization's beneficiaries. Discerning the point at which a donor's engagement crosses the line into unwelcome or inappropriate territory can be difficult (see Chapter 2). Organizations may choose to diversify their revenue sources, including fees, dues, or commercial activities in order to lessen their dependence on any one funding source, and in so doing potentially diminish threats to control over financial and programmatic decision‐making (Carroll and Stater 2009).

      Social Exchanges: Gift Theory and Reciprocity

Gift theory recognizes that giving gifts is a universal aspect of social human behavior, and, further, that receiving a gift generally prompts a social obligation to reciprocate in some manner (Adloff 2016). The gifts may vary greatly – they may include money or physical items; favors such as use of resources like a boat or equipment, helping with yard work or childcare, or preferential treatment; or appreciation expressed through a thoughtful note, loyalty, or even prayers. Thus, giving is rarely one‐way, but is instead a social exchange of some type. Many factors affect what is considered an appropriate gift: cultural traditions, the relationship and relative social status of each party, and time and place. These social considerations apply whether one is considering an initial gift, or a reciprocal expression (Adloff 2016; Mauss 1990). Breaking the social norm of reciprocity is viewed as a lack of appreciation and makes future giving less likely (Lindahl 2010). Gift theory tells us that giving results in reciprocal obligations, and that these create and maintain webs of both mutual interest and mutual responsibility (Gouldner 1960; Mauss 1990).

      One implication of this theory is stewardship. Demonstrating to donors that their generosity is appreciated and impactful fulfills the expectations of reciprocity. When fundraisers acknowledge gifts and demonstrate stewardship, they are speaking to the social exchange aspect of giving, fulfilling the social norm of reciprocity, and maintaining a relationship of mutual interest (Alborough 2017). Gift theory explicitly recognizes the importance of relationship building in fundraising.

      A second implication of gift theory concerns donor status. As noted by Lindahl (2010), “… making generous donations confers high status on the donor and benefits the recipient organization and the community at the same time” (93–94). The norms of reciprocity between peers suggest that the gift or favor eventually reciprocated should be of similar value. However, those of high status are often perceived as having higher social obligations to their communities (noblesse oblige), while those of lower status are required to reciprocate with their appreciation, which might take the form of loyalty. Thus, gift theory explains instances of conspicuous generosity, in which a person might give significantly to a cause to be recognized publicly as a member of a socially elite group.

      Positive Identification: The Identification Theory of Care and Social Identity Theory

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