scholarly journals Does Price Matter in Charitable Giving? Evidence From a Large-Scale Natural Field Experiment

2006 ◽  
Author(s):  
Dean Karlan ◽  
John List
Keyword(s):  
Field Experiment ◽  
Charitable Giving ◽  
Large Scale ◽  
Natural Field ◽  
Natural Field Experiment

scholarly journals Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment

2007 ◽  
Vol 97 (5) ◽  
pp. 1774-1793 ◽  
Author(s):  
Dean Karlan ◽  
John A List
Keyword(s):  
Field Experiment ◽  
Charitable Giving ◽  
Large Scale ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Theoretical Work ◽  
Benefit Analysis ◽  
Natural Field ◽  
Natural Field Experiment ◽  
Matching Grant

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)

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