The Impact of Financial and Non-Financial Information Disclosure to Donation Decision in NonProfit Organization by Individual Donor (A True-Experiment Research)

Abstract

The purpose of this research is to analyze and evaluate the impact of financial and non-financial information disclosure to donation decision in the nonprofit organization by the individual donor. Using methods of true-experimental research with Posttest-Only Control Design with Completely Randomized Designs-within-subject or CR-p. A total of 16 students selected according to pre-defined categories and divided into 8 groups as proxy decision makers are faced with four manipulation disclosure. Results showed that the average number of the decision against nonprofit donations by individual donors to participants is different between types of disclosure; greater donor preference to non-financial; the decision is based on the type of donation without any disclosure to make sure there are other factors into consideration donor in donating; and this study confirmed the Agency Theory where there is an agency relationship between the donor as principal and NPO as an agent that must be met in order to avoid agency problems resulting condition information gaps. The study was limited to as a quasi-experiments are run in simulation with the students as a proxy decision maker donations have not been able to present a perfect ecological validity in the simulation where students are not the actual decision makers who do not use his own money to the benefit of donation and this study is limited to the type of disclosure of financial and non-financial as independent variables means that there are other factors that may influence the decision of donations that are not investigated in this study.

Keywords: Financial and Non-Financial Disclosure, Donation, NonProfit