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Do I care if you are paid? Field experiments and expert forecasts in charitable giving

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  • Rau, Holger
  • Samek, Anya
  • Zhurakhovska, Lilia

Abstract

There is a widespread belief among fundraisers that solicitations by volunteers will be more effective than solicitations by paid workers. In this paper, we confirm this belief through incentivized surveys of fundraising professionals. To explore whether this belief has merit, we conduct a door-to-door fundraising experiment in which solicitors communicate their compensation status to households. In our experiment, we vary (1) whether solicitors are paid or not and (2) the information that potential donors receive about solicitors’ compensation. We find that fundraisers perform equally well in the paid and volunteer conditions when no information about compensation is given to donors. Interestingly, we find that donations are unchanged when donors are informed that solicitors are volunteers. Further, informing donors that solicitors are paid does not decrease donations – in fact, it somewhat increases donations. These results stand in contrast to forecasts of fundraising professionals. A follow-up survey with laypeople suggests that knowing whether a solicitor is paid affects both trust in the charity and perceptions of the solicitor.

Suggested Citation

  • Rau, Holger & Samek, Anya & Zhurakhovska, Lilia, 2022. "Do I care if you are paid? Field experiments and expert forecasts in charitable giving," Journal of Economic Behavior & Organization, Elsevier, vol. 195(C), pages 42-51.
  • Handle: RePEc:eee:jeborg:v:195:y:2022:i:c:p:42-51
    DOI: 10.1016/j.jebo.2021.12.020
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    References listed on IDEAS

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    More about this item

    Keywords

    Charitable giving; Field experiment; Information;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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