Doctoral Dissertation Research: The Evolution of Charitable Fundraising: Theory and Experiments

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AbstractSBR-9905027 Charitable fund-raising institutions play an important role on the demand-side of the private provision of public goods. Not only do fund-raisers serve as a conduit for donor money, but they also provide important "social goods," such as prestige, pride, and social comparison, to donors by publicly announcing contributions. These social goods extend beyond the pure warm-glow of donation, and fund-raisers, knowing this, can strategically use this preference for social goods to increase contributions. Indeed, if having one's own contribution announced can increase the contributions of others, then there is an externality generated that makes both pure and impure altruists desire an institution that announces gifts and produces social goods. This study examines fund raising using theory and experiments. By varying the way contributions are announced in standard public goods experiments, these social effects can be explored in the laboratory. The first set of experiments will try to establish what the nature of these social goods are and how fund-raising institutions might manipulate these to increase contributions. The second set will introduce competition among charities by allowing them to offer different social goods. This project will provide insights into which social goods people prefer, which charities survive, and how contribution levels are affected. This research will provide a foundation for a continued research agenda of understanding the demand and supply sides of the charity market.