Relationship marketing in the not-for-profit sector: an extension and application of the commitment-trust theory

Several theorists advocate the application of relationship marketing concepts to the not-for-profit organisation (NPO) sector. The authors build on these contributions to adapt and extend the Morgan and Hunt [J. Mark. 58 (1994) 20] commitment-trust model to the NPO sector. The proposed model is applied to the relationship between an NPO and its organisational funders and is empirically tested. The empirical work is based on responses from 41 NPO funders. A partial least squares (PLS) analysis is used to identify the significant factors in the proposed model. Major contributions to the model of relationship marketing include (1) replacing the relationship benefit construct with two new constructs-material benefits and nonmaterial benefits; (2) extending the communication construct to include items that reflect the two-way nature of the dyad between the funders and the NPO; (3) demonstrating the significance of nonmaterial benefits as a mediator of the link between trust and commitment; (4) highlighting the lack of significance of material benefits and termination costs as drivers of commitment. The model provides fundraisers in the NPO sector with a framework to understand and improve their relationships with organisational funders. (c) 2003 Elsevier Inc. All rights reserved.