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Matching donations without crowding out? Some theoretical considerations and a field experiment

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  • Adena, Maja
  • Huck, Steffen

Abstract

In this paper, we present evidence from a large-scale natural experiment in which different fundraising schemes are tested and compared: lead donor, standard linear matching (1:1), and an alternative matching scheme in which the matching amount goes to another project. The lead donor treatment, in comparison to other treatments, generates high average donations but relatively low participation rate. In the case of the standard linear matching scheme (1:1) we find, similarly to Huck and Rasul (2011), a crowding-out effect, which reduces significantly the average donation given. However, in our case, the traditional linear matching scheme (1:1) increases significantly the participation rate such that the overall return per mail-out is also higher. The alternative matching scheme increases significantly the response rate without generating the above crowding out effect.
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Suggested Citation

  • Adena, Maja & Huck, Steffen, 2015. "Matching donations without crowding out? Some theoretical considerations and a field experiment," Discussion Papers, Research Unit: Economics of Change SP II 2015-302, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzbeoc:spii2015302
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    References listed on IDEAS

    as
    1. Daniel Rondeau & John List, 2008. "Matching and challenge gifts to charity: evidence from laboratory and natural field experiments," Experimental Economics, Springer;Economic Science Association, vol. 11(3), pages 253-267, September.
    2. Steffen Huck & Imran Rasul & Andrew Shephard, 2015. "Comparing Charitable Fundraising Schemes: Evidence from a Natural Field Experiment and a Structural Model," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 326-369, May.
    3. John A. List & David Lucking-Reiley, 2002. "The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 215-233, February.
    4. Dean Karlan & John A. List, 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," American Economic Review, American Economic Association, vol. 97(5), pages 1774-1793, December.
    5. 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.
    6. 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.
    7. repec:feb:natura:0053 is not listed on IDEAS
    8. Catherine Eckel & Philip Grossman, 2008. "Subsidizing charitable contributions: a natural field experiment comparing matching and rebate subsidies," Experimental Economics, Springer;Economic Science Association, vol. 11(3), pages 234-252, September.
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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