Donor behaviour in the arts - An analysis of the funding stakeholder’s factors for contribution to a non-profit art museum

Surrounded by an uncertain funding environment, that is characterised by dependencies from various stakeholders and multidimensional objectives, the non-profit organisation needs to take the right strategic decisions. The consideration of the funding stakeholders’ values, expectations and motivations in the formulation of a strategy are key, in order to secure a long-term commitment. Therefore, the thesis at hand examined the various reasons for contributions to a non-profit museum, with a specific analysis of the public, private and corporate stakeholders from the Museum of Modern Art in Luxembourg. During the evaluation of the qualitative interviews, the decision-making process of a donor, the general interests and values and the expectations towards a relationship with the beneficiary organisation were highlighted, next to alternative funding strategies aiming at having an own income. As a result and answer to the research question, one can say that every donor has an individual reasoning, depending on his experiences and personal interests. Although monetary incentives turned out to be appreciated, they are never the main motivation, which emphasises the need for a stronger communication of the organisation’s values and uniqueness in terms of brand positioning. Alternative funding sources are permitted, as long as they are not interfering with the artistic program of the museum, since they allow for new projects, and a larger independence from external sources. Consequently, the strategic funding decisions should aim at enlarging own revenues, convincing specific stakeholder profiles of the good cause the museum is addressing and thus binding them to the organisation on the long term. Moreover, the organisational structures need to be adapted to a stronger independence from public funding sources and be prepared to enter negotiations and relationships with corporate and private donors, that demand different logics, values and interests.