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Lift and shift: the effect of fundraising interventions in charity space and time

Author

Listed:
  • Sarah Smith

    (Institute for Fiscal Studies and University of Bristol)

  • Kimberley Scharf

    (Institute for Fiscal Studies and University of Warwick)

  • Mark Ottoni-Wilhelm

    (Institute for Fiscal Studies)

Abstract

Fundraising interventions may lift donations and/or shift their composition and timing, making it important to study their effect across charity space and time. We find that major fundraising appeals lift total donations, but surprisingly shift donations to other charities across time. To explain this, we develop a two-period model with two sources of warm glow that relates donation responses to underlying preference parameters. A dynamic framework, combined with rich data, provides opportunities to identify substitutability/complementarity in warm glow. The observed pattern is possible only if the two sources of warm glow are substitutes and warm glow is intertemporally substitutable.

Suggested Citation

  • Sarah Smith & Kimberley Scharf & Mark Ottoni-Wilhelm, 2017. "Lift and shift: the effect of fundraising interventions in charity space and time," IFS Working Papers W17/20, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:17/20
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    Citations

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    Cited by:

    1. Adena, Maja & Harke, Julian, 2022. "COVID-19 and pro-sociality: How do donors respond to local pandemic severity, increased salience, and media coverage?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 824-844.
    2. Adena, Maja & Huck, Steffen, 2019. "Giving once, giving twice: A two-period field experiment on intertemporal crowding in charitable giving," Journal of Public Economics, Elsevier, vol. 172(C), pages 127-134.
    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. 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.
    5. Blanco, Esther & Baier, Alexandra & Holzmeister, Felix & Jaber-Lopez, Tarek & Struwe, Natalie, 2022. "Substitution of social sustainability concerns under the Covid-19 pandemic," Ecological Economics, Elsevier, vol. 192(C).
    6. Carlo Gallier & Timo Goeschl & Martin Kesternich & Johannes Lohse & Christiane Reif & Daniel Roemer, 2019. "Inter-charity competition under spatial differentiation: Sorting, crowding, and splillovers," Discussion Papers 19-08, Department of Economics, University of Birmingham.
    7. Jonathan Meer & Benjamin A. Priday, 2020. "Tax Prices and Charitable Giving: Projected Changes in Donations under the 2017 Tax Cuts and Jobs Act," Tax Policy and the Economy, University of Chicago Press, vol. 34(1), pages 113-138.
    8. Tatyana Deryugina & Benjamin M. Marx, 2021. "Is the Supply of Charitable Donations Fixed? Evidence from Deadly Tornadoes," American Economic Review: Insights, American Economic Association, vol. 3(3), pages 383-398, September.
    9. Eckel, Catherine & Guney, Begum & Uler, Neslihan, 2020. "Independent vs. Coordinated Fundraising: Understanding the Role of Information," European Economic Review, Elsevier, vol. 127(C).
    10. Ross Hickey & Bradley Minaker & A. Abigail Payne, 2019. "The Sensitivity of Charitable Giving to the Timing and Salience of Tax Credits," National Tax Journal, National Tax Association;National Tax Journal, vol. 72(1), pages 79-110, March.
    11. Alt, Marius & Gallier, Carlo, 2021. "Incentives and intertemporal behavioral spillovers: A two-period experiment on charitable giving," ZEW Discussion Papers 21-010, ZEW - Leibniz Centre for European Economic Research.
    12. Bittschi, Benjamin & Dwenger, Nadja & Rincke, Johannes, 2021. "Water the flowers you want to grow? Evidence on private recognition and donor loyalty," European Economic Review, Elsevier, vol. 131(C).
    13. Sarah Smith & Mark Ottoni-Wilhelm & Kimberley Scharf, 2017. "The Donation Response to Natural Disasters," Bristol Economics Discussion Papers 17/688, School of Economics, University of Bristol, UK.
    14. Perroni, Carlo & Scharf, Kimberley & Talavera, Oleksandr & Vi, Linh, 2022. "Does online salience predict charitable giving? Evidence from SMS text donations," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 134-149.
    15. Black, Nicole & De Gruyter, Elaine & Petrie, Dennis & Smith, Sarah, 2021. "Altruism born of suffering? The impact of an adverse health shock on pro-social behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 902-915.
    16. Deck, Cary & Murphy, James J., 2019. "Donors change both their level and pattern of giving in response to contests among charities," European Economic Review, Elsevier, vol. 112(C), pages 91-106.
    17. Jonathan Meer & Benjamin A. Priday, 2019. "Tax Prices and Charitable Giving: Projected Changes in Donations Under the 2017 TCJA," NBER Working Papers 26452, National Bureau of Economic Research, Inc.
    18. Daniel M. Hungerman & Vivek S. Moorthy, 2020. "Every Day is Earth Day: Evidence on the Long-term Impact of Environmental Activism," NBER Working Papers 26979, National Bureau of Economic Research, Inc.
    19. Adena, Maja & Huck, Steffen, 2019. "Personalized fundraising: A field experiment on threshold matching of donations," Discussion Papers, Research Unit: Economics of Change SP II 2019-306, WZB Berlin Social Science Center.
    20. Mayo, Jennifer, 2021. "How do big gifts affect rival charities and their donors?," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 575-597.

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    More about this item

    Keywords

    Warm glow; donations; substitution; intertemporal substitution;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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