American Economic Review Vol. 97 No. 5 2007
Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment
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.
- DOI
- 10.1257/aer.97.5.1774
- Volume
- 97
- Issue
- 5
- Pages
- 1774-1793
- Language
- en
- Sources
- openalex bibtex:phds-export.bib crossref