Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment
- (pp. 1774-1793)
Abstract
We conducted a natural field experiment to further our understanding of the economics of charity. Using direct mail solicitations to over 50,000 prior donors of a nonprofit organization, we tested the effectiveness of a matching grant on charitable giving. We find that the match offer increases both the revenue per solicitation and the response rate. Larger match ratios (i.e., $3:$1 and $2:$1) relative to a smaller match ratio ($1:$1) had no additional impact, however. The results provide avenues for future empirical and theoretical work on charitable giving, cost-benefit analysis, and the private provision of public goods. (JEL D64, L31)Citation
Karlan, Dean, and John A. List. 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment." American Economic Review, 97 (5): 1774-1793. DOI: 10.1257/aer.97.5.1774Additional Materials
JEL Classification
- D64 Altruism
- L31 Nonprofit Institutions; NGOs