Working Paper: NBER ID: w17954
Authors: Dean Karlan; John A. List
Abstract: We conducted a fundraising experiment with an international development nonprofit organization in which a matching grant offered by the Bill and Melinda Gates Foundation raised more funds than one from an anonymous donor. The effect is strongest for solicitees who previously gave to other BMGF-supported, poverty charities. With supporting evidence from two other fundraising experiments as well as a survey experiment, we argue this is consistent with a quality signal mechanism. Alternative mechanisms are discussed, and not ruled out. The results help inform theories about charitable giving decision-making, and provide guidance to organizations and large donors on how to overcome information asymmetries hindering fundraising.
Keywords: No keywords provided
JEL Codes: C93; D64; H4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| BMGF matching grant (H81) | increased funds raised (H87) |
| BMGF matching grant (H81) | increased average revenue per solicitation (H27) |
| BMGF matching grant (vs no match) (C78) | increased probability of giving (D64) |
| BMGF matching grant (vs no match) (C78) | increased average revenue per solicitation (H27) |
| familiarity with BMGF (Y20) | increased response to named matching grant (H77) |