The design of charitable fund-raising schemes: Matching grants or seed money

Ning Gong and Bruce D. Grundy

Journal of Economic Behavior & Organization, 2014, vol. 108, issue C, 147-165

Abstract: For a fixed large donation a matching scheme that simply uses a one-for-one match ratio can actually raise less money than a seed money scheme. But when the match ratio is chosen to reflect the characteristics of the small donor base so as to exhaust the large donor's willingness to give, matching schemes always raise more money and are preferred by both charities and large donors. However, when the large donor chooses the size of her donation, a conflict can arise. The large donor can prefer a smaller leadership gift and more reliance on small donor matching while the charity can prefer seed money.

Keywords: Charitable fund-raising; Matching grants; Public goods (search for similar items in EconPapers)
JEL-codes: H41 L31 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:108:y:2014:i:c:p:147-165

DOI: 10.1016/j.jebo.2014.09.007

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