Working Paper: NBER ID: w14319
Authors: Craig E. Landry; Andreas Lange; John A. List; Michael K. Price; Nicholas G. Rupp
Abstract: This study develops theory and conducts an experiment to provide an understanding of why people initially give to charities, why they remain committed to the cause, and what factors attenuate these influences. Using an experimental design that links donations across distinct treatments separated in time, we present several insights. For example, we find that previous donors are more likely to give, and contribute more, than donors asked to contribute for the first time. Yet, how these previous donors were acquired is critical: agents who are initially attracted by signals of charitable quality transmitted via an economic mechanism are much more likely to continue giving than agents who were initially attracted by non-mechanism factors.
Keywords: charitable giving; donor behavior; fundraising; field experiment
JEL Codes: C93; H41; Q5
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Previous donors (warmlist) (D64) | Higher likelihood of contributing (D64) |
| Previous donors (warmlist) (D64) | Larger average contributions (D64) |
| Fundraising mechanism (H87) | Donor behavior (D64) |
| Gifts provided (D64) | Behavior of warmlist households aligns with cold list households (D19) |
| Change in solicitation method (door-to-door to mail) (L87) | Decrease in likelihood of contribution (D64) |
| Removing mechanism incentives (D47) | No impact on warmlist households (D19) |
| Removing non-mechanism factors (C59) | Lower contributions from warmlist households (D19) |
| Mechanisms signaling charitable quality (D64) | More loyalty from donors (D64) |