Basis of donors’ trust in npos: A case study of all India Pingalwara Charitable Society (AIPCS), Amritsar

The study investigates the basis of donors’ trust in the Non-Profit Organizations by taking a case study of All India Pingalwara Charitable Society, Amritsar (AIPCS). An attempt has been made to identify the reasons of trust and confidence shown by the donors in giving the donation to a specified charity. Simple arithmetic average and percentages were used for finding out the sequence of importance of the reasons. The T and one-way ANOVA tests have been applied for checking differences in the perceptions of various donors’ categories based on the demographics. It has been found from this study that the donors show trust if, a charity has the good reputation, works for a cause and is set up for the public good. The study also examines the impact of charity's performance on its donors’ trust by applying the Ordered Logistic Regression. The four parameters were used for assessing the performance of AIPCS. All except ‘reasonable proportion of the donation gets to the end cause’ have found to be statistically significant in building the trust and confidence among donors. The parameter ‘AIPCS spends wisely and effectively’ is the most important driver of the donors’ trust and confidence. Finally, our study throws a light on the extent of benefits derived by the donors from the said organization's services.