The Heterogeneity Of Competitive Forces

Abstract

How does competition for resources affect the fundraising performance of local UW affiliates? Drawing upon population ecology we hypothesize a non-linear relationship between competition and organizational performance. Using a twenty-one year panel data set that includes UW campaign data, contributions to specialized fund raising organizations, and contributions to the general population of nonprofit organizations, we estimate a fixed effects regression model. We find that the effect of competition differs depending upon the degree of niche overlap. Contributions to organizations with greatest niche overlap have a negative effect on contributions to local UWs. However, consistent with population ecology, other types of fundraising organizations that have less niche overlap show synergetic relationships at certain levels of giving. However, few communities reach the philanthropic level at which synergies occur.