Matched Fundraising: Evidence from a Natural Field Experiment

Steffen Huck and Imran Rasul

No 5267, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We present evidence from a natural field experiment designed to shed light on the efficacy of fundraising schemes in which donations are matched by a lead donor. In conjunction with the Bavarian State Opera House, we mailed 14,000 regular opera attendees a letter describing a charitable fundraising project organized by the opera house. Recipients were randomly assigned to treatments designed to explore behavioral responses to linear matching schemes, as well as the mere existence of a substantial lead donor. We use the exogenous variation in match rates across treatments to estimate the price elasticities of charitable giving. We find that straight linear matching schemes raise the total donations received including the match value, but partially crowd out the actual donations given excluding the match. If charitable organizations can use lead gifts as they wish, our results show they maximize donations given by simply announcing the presence of a lead gift. We contrast our price elasticity estimates with those based on changes in rules regarding tax deductions for charitable giving, as well as from the nascent literature using large-scale natural field experiments on giving.

Keywords: matched fundraising; natural field experiment; charitable giving (search for similar items in EconPapers)
JEL-codes: C93 D12 D64 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2010-10
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Journal of Public Economics, 2011, 95 (5-6), 351-362

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Related works:
Journal Article: Matched fundraising: Evidence from a natural field experiment (2011)
Journal Article: Matched fundraising: Evidence from a natural field experiment (2011)
Working Paper: Matched Fundraising: Evidence from a Natural Field Experiment (2010)
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