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Online Fund-Raising Mechanisms: A Field Experiment

Author

Listed:
  • Chen Yan

    (University of Michigan)

  • Li Xin

    (University of Michigan)

  • MacKie-Mason Jeffrey K

    (University of Michigan)

Abstract

We implemented one of the first web-based online field experiments of fund-raising. We embedded our experiment in the Internet Public Library to test four mechanisms: Voluntary Contribution (VCM), Premium, Seed Money and Matching. Although the gift size is not significantly different across mechanisms, the Seed and Matching mechanisms each generate significantly higher user click-through response rate than the Premium mechanism. Because this is one of the earliest embedded, web-based field experiments, we report our methodology findings in some detail. Cookies work better as participant assignment techniques than pop-up windows and elicitation of geographic information. Participant clickstream data that nominally demonstrate a desire to donate is a poor predictor of actual giving.

Suggested Citation

  • Chen Yan & Li Xin & MacKie-Mason Jeffrey K, 2005. "Online Fund-Raising Mechanisms: A Field Experiment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(2), pages 1-39, December.
    • Handle: RePEc:bpj:bejeap:v:contributions.5:y:2006:i:2:n:4
    DOI: 10.2202/1538-0645.1477
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    References listed on IDEAS

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    Cited by:

    1. Krasteva, Silvana & Yildirim, Huseyin, 2013. "(Un)Informed charitable giving," Journal of Public Economics, Elsevier, vol. 106(C), pages 14-26.
    2. Adena, Maja & Huck, Steffen, 2016. "Online fundraising, self-image, and the long-term impact of ask avoidance," VfS Annual Conference 2016 (Augsburg): Demographic Change 145535, Verein für Socialpolitik / German Economic Association.
    3. Zhiyuan Gao & Zhiling Guo & Qian Tang, 2022. "How do monetary incentives influence giving? An empirical investigation of matching subsidies on kiva," Information Systems and e-Business Management, Springer, vol. 20(2), pages 303-324, June.
    4. Gee, Laura Katherine & Schreck, Michael J., 2017. "Do Beliefs about Peers Matter for Donation Matching? Experiments in the Field and Laboratory," IZA Discussion Papers 10956, Institute of Labor Economics (IZA).
    5. Brian McManus & Richard Bennet, 2008. "The Demand for Products Linked to Public Goods: Evidence from an Online Field Experiment," Working Papers 08-28, NET Institute, revised Oct 2008.
    6. Adena, Maja & Hager, Anselm, 2020. "Does online fundraising increase charitable giving? A nation-wide field experiment on Facebook," Discussion Papers, Research Unit: Economics of Change SP II 2020-302, WZB Berlin Social Science Center.
    7. Laila Kundzina & Baiba Rivza & Liva Grinevica & Peteris Rivza, 2023. "General Fundraising Trends among University Patrons and Entrepreneurs to Promote the Sustainability of Universities," Sustainability, MDPI, vol. 15(14), pages 1-24, July.
    8. List John A., 2007. "Field Experiments: A Bridge between Lab and Naturally Occurring Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(2), pages 1-47, April.
    9. Christiane Reif & Dirk Rübbelke & Andreas Löschel, 2017. "Improving Voluntary Public Good Provision Through a Non-governmental, Endogenous Matching Mechanism: Experimental Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 559-589, July.
    10. Maja Adena & Steffen Huck, 2020. "Online Fundraising, Self-Image, and the Long-Term Impact of Ask Avoidance," Management Science, INFORMS, vol. 66(2), pages 722-743, February.
    11. Krasteva, Silvana & Yildirim, Huseyin, 2014. "Reprint of: (Un)Informed charitable giving," Journal of Public Economics, Elsevier, vol. 114(C), pages 108-120.
    12. Huck, Steffen & Rasul, Imran, 2011. "Matched fundraising: Evidence from a natural field experiment," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 351-362, June.
    13. Yan Chen & Joseph Konstan, 2015. "Online field experiments: a selective survey of methods," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 29-42, July.
    14. Gutiérrez Villar, B & Araque Padilla, R. A & Montero Simó, M. J. & Ortega Carpio, M. L., 2009. "Factores de influencia en la captación de recursos privados en las ONGD españolas/Factors of Influence in the Fundraising of the Spanish NGOD," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 785(26á)-78, Diciembre.
    15. Tetsuya KAWAMURA & Takanori Ida & Kazuhito Ogawa, 2018. "Simultaneous Effect of Monetary and Non-Monetary Interventions on Crowd-Funding Field Experimental Evidence:R&D in New Sources of Energy," Discussion papers e-18-005, Graduate School of Economics , Kyoto University.
    16. Levitt, Steven D. & List, John A., 2009. "Field experiments in economics: The past, the present, and the future," European Economic Review, Elsevier, vol. 53(1), pages 1-18, January.
    17. Gee, Laura K. & Schreck, Michael J., 2018. "Do beliefs about peers matter for donation matching? Experiments in the field and laboratory," Games and Economic Behavior, Elsevier, vol. 107(C), pages 282-297.
    18. Gong, Ning & Grundy, Bruce D., 2014. "The design of charitable fund-raising schemes: Matching grants or seed money," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 147-165.
    19. Cockrill, Antje & Liu, Yang, 2013. "Western popular music consumption by highly involved Chinese music fans," Journal of Retailing and Consumer Services, Elsevier, vol. 20(3), pages 263-271.
    20. Hannes Koppel & Günther G. Schulze, 2009. "On the Channels of Pro-Social Behavior Evidence from a natural field experiment," Jena Economics Research Papers 2009-102, Friedrich-Schiller-University Jena.
    21. Andreas Lange & Andrew Stocking, 2009. "Charitable Memberships, Volunteering, and Discounts: Evidence from a Large-Scale Online Field Experiment," NBER Working Papers 14941, National Bureau of Economic Research, Inc.
    22. Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2010. "Is a Donor in Hand Better Than Two in the Bush? Evidence from a Natural Field Experiment," American Economic Review, American Economic Association, vol. 100(3), pages 958-983, June.
    23. Chandrayee Chatterjee & James C. Cox & Michael K. Price & Florian Rundhammer, 2020. "Competition Among Charities: Field Experimental Evidence from a State Income Tax Credit for Charitable Giving," Experimental Economics Center Working Paper Series 2020-01, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
    24. Laura Gee & Michael Schreck, 2016. "Do Beliefs About Peers Matter for Donation Matching? Experiments in the Field and Laboratory," Framed Field Experiments 00538, The Field Experiments Website.
    25. McManus, Brian & Bennet, Richard, 2011. "The demand for products linked to public goods: Evidence from an online field experiment," Journal of Public Economics, Elsevier, vol. 95(5), pages 403-415.

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