The Effectiveness of Private Benefits in Fundraising of Local Charities

26 Pages Posted: 23 May 2012

See all articles by Holger Sieg

Holger Sieg

University of Pennsylvania - Department of Economics; National Bureau of Economic Research (NBER)

Jipeng Zhang

Nanyang Technological University

Date Written: May 2012

Abstract

This article provides an empirical analysis of the role that private benefits play in explaining charitable donations to large cultural and environmental organizations. We develop a multiple discrete choice model with differentiated products. We estimate the model using a unique data set of donor lists for the 10 largest cultural and environmental charitable organizations in the Pittsburgh metropolitan area. We find that some private benefits such as invitations to private dinner parties and special events are effective tools for fundraising. Our policy simulations suggests that the composition of private benefits has a potentially large impact on donor behavior.

Suggested Citation

Sieg, Holger and Zhang, Jipeng, The Effectiveness of Private Benefits in Fundraising of Local Charities (May 2012). International Economic Review, Vol. 53, Issue 2, pp. 349-374, 2012. Available at SSRN: https://ssrn.com/abstract=2065125 or http://dx.doi.org/10.1111/j.1468-2354.2012.00684.x

Holger Sieg (Contact Author)

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Jipeng Zhang

Nanyang Technological University ( email )

S3 B2-A28 Nanyang Avenue
Singapore, 639798
Singapore

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