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Matching and Challenge Gifts to Charity: Evidence from Laboratory and Natural Field Experiments

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Author Info

  • Rondeau, Daniel

    () (University of Victoria)

  • List, John A.

    () (University of Chicago)

Abstract

This study designs a natural field experiment linked to a controlled laboratory experiment to examine the effectiveness of matching gifts and challenge gifts, two popular strategies used to secure a portion of the $200 billion annually given to charities. We find evidence that challenge gifts positively influence contributions in the field, but matching gifts do not. Methodologically, we find important similarities and dissimilarities between behavior in the lab and the field. Overall, our results have clear implications for fundraisers and provide avenues for future empirical and theoretical work on charitable giving.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3278.

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Length: 31 pages
Date of creation: Jan 2008
Date of revision:
Publication status: published in: Experimental Economics, 2008, 11(3), 253-267
Handle: RePEc:iza:izadps:dp3278

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Related research

Keywords: field experiments; charitable giving; threshold public goods; fundraising;

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References

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  1. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
  2. Rondeau, Daniel & Schulze, William D. & Poe, Gregory L., 1997. "Voluntary Revelation Of The Demand For Public Goods Using A Provision Point Mechanism," Working Papers 7265, Cornell University, Department of Applied Economics and Management.
  3. Rondeau, Daniel & Poe, Gregory L. & Schulze, William D., 2005. "VCM or PPM? A comparison of the performance of two voluntary public goods mechanisms," Journal of Public Economics, Elsevier, vol. 89(8), pages 1581-1592, August.
  4. Dean Karlan & John A. List, 2006. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," Working Papers 1, The Field Experiments Website.
  5. Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March.
  6. List, John A. & Rasul, Imran, 2011. "Field Experiments in Labor Economics," Handbook of Labor Economics, Elsevier.
  7. Cadsby, Charles Bram & Maynes, Elizabeth, 1999. "Voluntary provision of threshold public goods with continuous contributions: experimental evidence," Journal of Public Economics, Elsevier, vol. 71(1), pages 53-73, January.
  8. Bruno S. Frey & Stephan Meier, 2004. "Social Comparisons and Pro-social Behavior: Testing "Conditional Cooperation" in a Field Experiment," American Economic Review, American Economic Association, vol. 94(5), pages 1717-1722, December.
  9. Craig Landry & Andreas Lange & John List & Michael Price & Nicholas Rupp, 2006. "Toward an understanding of the economics of charity: Evidence from a field experiment," Natural Field Experiments 00292, The Field Experiments Website.
  10. Stephan Meier, 2007. "Do Subsidies Increase Charitable Giving in the Long Run? Matching Donations in a Field Experiment," Journal of the European Economic Association, MIT Press, vol. 5(6), pages 1203-1222, December.
  11. Bagnoli, Mark & Lipman, Barton L, 1989. "Provision of Public Goods: Fully Implementing the Core through Private Contributions," Review of Economic Studies, Wiley Blackwell, vol. 56(4), pages 583-601, October.
  12. John A. List & David Lucking-Reiley, 2000. "The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign," Vanderbilt University Department of Economics Working Papers 0008, Vanderbilt University Department of Economics.
  13. List, John A. & Rondeau, Daniel, 2003. "The impact of challenge gifts on charitable giving: an experimental investigation," Economics Letters, Elsevier, vol. 79(2), pages 153-159, May.
  14. Randolph, William C, 1995. "Dynamic Income, Progressive Taxes, and the Timing of Charitable Contributions," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 709-38, August.
  15. Steven D. Levitt & John A. List, 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 153-174, Spring.
  16. Eckel, Catherine C. & Grossman, Philip J., 2003. "Rebate versus matching: does how we subsidize charitable contributions matter?," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 681-701, March.
  17. Armin Falk, 2007. "Gift Exchange in the Field," Econometrica, Econometric Society, vol. 75(5), pages 1501-1511, 09.
  18. Andreoni,J., 2002. "Leadership giving in charitable fund-raising," Working papers 13, Wisconsin Madison - Social Systems.
  19. repec:feb:natura:0051 is not listed on IDEAS
  20. Gerald E. Auten & Holger Sieg & Charles T. Clotfelter, 2002. "Charitable Giving, Income, and Taxes: An Analysis of Panel Data," American Economic Review, American Economic Association, vol. 92(1), pages 371-382, March.
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Citations

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Cited by:
  1. de Oliveira, Angela C.M. & Croson, Rachel T.A. & Eckel, Catherine, 2011. "The giving type: Identifying donors," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 428-435, June.
  2. De Hoop, Thomas & Van Kempen, Luuk & Fort, Ricardo, 2010. "Do people invest in local public goods with long-term benefits: Experimental evidence from a shanty town in Peru," MPRA Paper 24968, University Library of Munich, Germany.
  3. Null, C., 2011. "Warm glow, information, and inefficient charitable giving," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 455-465, June.
  4. Huck, Steffen & Rasul, Imran, 2010. "Matched Fundraising: Evidence from a Natural Field Experiment," CEPR Discussion Papers 8075, C.E.P.R. Discussion Papers.
  5. Null, C., 2011. "Warm glow, information, and inefficient charitable giving," Journal of Public Economics, Elsevier, vol. 95(5), pages 455-465.
  6. G. A. Verhaert & D. Van Den Poel, 2012. "The Role of Seed Money and Threshold Size in Optimizing Fundraising Campaigns: Past Behavior Matters!," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/815, Ghent University, Faculty of Economics and Business Administration.
  7. Julian Rauchdobler & Rupert Sausgruber & Jean-Robert Tyran, 2010. "Voting on Thresholds for Public Goods: Experimental Evidence," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(1), pages 34-64, March.
  8. Karlan, Dean & List, John A. & Shafir, Eldar, 2011. "Small matches and charitable giving: Evidence from a natural field experiment," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 344-350, June.
  9. Sanjit Dhami & Ali al-Nowaihi, 2011. "Competitive Charitable Giving and Optimal Public Policy with Multiple Equilibria," Discussion Papers in Economics 11/37, Department of Economics, University of Leicester.
  10. Sanjit Dhami & Ali al-Nowaihi, 2012. "Philanthropy, multiple equilibria and optimal public policy," Discussion Papers in Economics 12/08, Department of Economics, University of Leicester.
  11. Martin, Richard & Randal, John, 2009. "How Sunday, price, and social norms influence donation behaviour," The Journal of Socio-Economics, Elsevier, vol. 38(5), pages 722-727, October.

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