Beyond overhead: decoding donor attitudes toward technology adoption in nonprofit organizations

Abstract

Information and communication technology (ICT) proves beneficial for nonprofit organizations, yet the costs associated with technology infrastructure, considered part of the overhead, may lead to donor aversion. Do donors care about adopting information and communication technology and the expenses of nonprofit organizations? This study investigates the donors’ reactions to nonprofits’ technology budgets, purposes, and performance. An online survey experiment is conducted on Qualtrics with 1,040 participants. Results show that technology adoption performance has a positive impact on donations. Surprisingly, donors are more likely to donate to organizations with higher technology budgets. However, the detailed information disclosed about the purposes of technology projects negatively influences their willingness to donate, particularly when technology spending is directed toward program service and fundraising purposes. This study suggests an open and innovative approach for nonprofits to portray themselves as technologically proficient organizations to appeal to donors.