Charitable Giving and Nonbinding Contribution-Level Suggestions Evidence from a Field Experiment
23 Pages Posted: 13 Mar 2014
Date Written: February 21, 2014
When asking for donations, charitable organizations often use suggestions concerning the amount of potential contributions. In our randomized field experiment, opera visitors received solicitation letters asking to support a social youth project organized by the opera house. The three different treatments were: no suggestion and suggestions of €100 and €200, respectively. The findings are that suggestions substantially influence the distribution of donations received. The mean amounts given increase significantly. The increase is stronger in the €200 treatment. On the other hand, the participation rate decreases if a suggestion is made. Overall, the returns from the campaign increase non-significantly.
JEL Classification: C930, D120, D640
Suggested Citation: Suggested Citation