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How category reporting can improve fundraising

Edward Cartwright and Amrish Patel

Journal of Economic Behavior & Organization, 2013, vol. 87, issue C, 73-90

Abstract: Many fundraisers report donations using categories such as more than £ 1000, more than £ 10,000, etc. One naturally wonders how we should categorise donations and whether categorising raises more than simple uncategorised reporting. To answer these questions, we employ a signalling game framework in which both the donor's donation and his benefits of being in a higher category are determined endogenously. We find that categorised reporting can always improve fundraising. Both high and low category thresholds can increase donations, with prior beliefs determining which is better. While categorising can lead to the existence of a low donation equilibrium, it is less problematic if signalling benefits are low.

Keywords: Category reporting; Esteem; Fundraising; Signalling (search for similar items in EconPapers)
JEL-codes: C72 D82 H41 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:87:y:2013:i:c:p:73-90

DOI: 10.1016/j.jebo.2013.01.003

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Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

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