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On the design of fundraising campaigns: Goal setting and information provision in dynamic fundraisers

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Abstract

This study uses a laboratory experiment to study key aspects of dynamic fundraising campaigns that utilize goals that must be met for a good or service to be provided. We compare campaigns characterized by a final goal only, an intermediate goal and a known final goal, and a third setting where the final goal is unknown at the beginning of the campaign. The design further varies whether an individual’s payoff from reaching a goal is uncertain or certain, which is intended to capture the effects of providing vague or precise information on the good or service to be provided. We find that adding an intermediate goal decreases both the likelihood of reaching the final goal and the amount of money raised. Even for successful campaigns, introducing an intermediate goal slows the timing of contributions and alters contribution strategies. For the one-goal case, value uncertainty decreases the likelihood the goal is reached.

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  • Adrienne W. Sudbury & Christian A. Vossler & Daniel Rondeau, 2025. "On the design of fundraising campaigns: Goal setting and information provision in dynamic fundraisers," Working Papers 2025-04, University of Tennessee, Department of Economics.
    • Handle: RePEc:ten:wpaper:2025-04
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    File URL: https://web.utk.edu/~jhollad3/RePEc/2025-04.pdf
    File Function: First version, 2025
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    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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