1. Understanding Social Exchange Theory
Jimmie R. Alford, LL.D., LH.D.
Founder and Chair, The Alford Group

2. Systems Theory Organizations do not live in isolation
Part of economic, political, social system
Closed versus open systems
Exchange process to environment
Autonomy versus Accountability
Fundraising is at the boundary – environmental interdependencies

3. Systems Theory
Organization
Clients
Donors
Government

4. Social Exchange Theory

5. Social Exchange Theory
Blau (1968)
No Quid Pro Quo
No formal time limit for response
Relationship of trust
Satisfactions
Psychological
Social
Self-esteem
Achievement
Purpose
Status
Group endeavor
Power

6. Persuasion (Cialdini)
Reciprocity
Scarcity
Authority
Consistency

7. Reciprocity
People try to repay, in kind, what another person has provided them
Reciprocity’s power stems from the fact that a person can trigger a feeling of indebtedness by doing an uninvited favor
The rule can be put in use by pointing out the services, benefits, and advantages that have already been realized

8. Scarcity Opportunities seem more valuable when they are less available
Uncommon or unique features or benefits that can not be found elsewhere

9. Authority Knowledge and trustworthiness
Uncover and communicate organizations expertise

10. Consistency
Once people make a choice, personal and external pressure exists to behave with the commitment
One sale leads to another
Rippling impact of past behavior on future behavior

11. What’s It About?
It’s all about the unique partnership between the organization, its donors and its trustees realizing as an outcome major gifts that are transformative.

12. Questions? Discussion!

13. Thank You !