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Economics of Philanthropy in Conjunction with Science of Philanthropy Initiative (SPI)

Paper Session

Friday, Jan. 3, 2020 2:30 PM - 4:30 PM (PDT)

Manchester Grand Hyatt, Pier
Hosted By: Association for the Study of Generosity in Economics
  • Chair: Daniel Hungerman, University of Notre Dame

Do Thank-You Calls Increase Charitable Giving? Expert Forecasts and Field Experimental Evidence

Anya Samek
,
University of Southern California
Chuck Longfield
,
Blackbaud Inc

Abstract

Expressions of gratitude are fundamental in modern societies, and calling to thank donors is a key fundraising strategy in the non-profit sector. Yet the effectiveness of thank-you calls remains untested. We report on field experiments with public television stations and a national non-profit in which nearly 600,000 new donors were randomized to receive a thank-you call or not. Fundraising professionals predicted that calls would increase donor retention by about 80%. In stark contrast, we found a precisely estimated null effect of calls on retention. Our results provide a first test of the economic impact of expressing gratitude on market behavior.

The Pledging Puzzle: How Can Revocable Promises Increase Charitable Giving?

Marta Serra-Garcia
,
University of California-San Diego
James Andreoni
,
University of California-San Diego

Abstract

What is the value of pledges if they are often reneged upon? In this paper we show -- both theoretically and experimentally -- that pledges can be used to screen donors and to better understand their motives for giving. In return, nonprofit managers can use the information they glean from pledges to better target future charitable giving appeals and interventions to donors, such as expressions of gratitude. In an experiment, we find that offering the option to pledge gifts induces self-selection. If expressions of gratitude are then targeted to individuals who select into pledges, reneging can be significantly reduced. Our findings provide an explanation for the potential usefulness of pledges.

Sophistication and Giving

Marco Castillo
,
Texas A&M University
Ragan Petrie
,
Texas A&M University

Abstract

We present evidence of suboptimal behavior in charitable giving. Using data from a large field experiment, we find that, on average, donors could have increased the money received by their charities by 18 percent had they acted strategically when given the opportunity to have their final donation to the charity increased by a match. This nonstrategic behavior is not limited to a few donors -- a total of 20 percent of donors could have doubled the money received by the charity. This behavior is much more prevalent among smaller donors (donations below $200). Our results can help reconcile seemingly contradictory behavior of donor responsiveness to incentives across populations.
Discussant(s)
Jana Gallus
,
University of California-Los Angeles
Adriaan Soetevent
,
University of Groningen
Mark Wilhelm
,
Indiana University-Purdue University Indianapolis
JEL Classifications
  • H4 - Publicly Provided Goods
  • D9 - Micro-Based Behavioral Economics