Abstract

https://ssrn.com/abstract=2421943
 


 



The Effect of Effectiveness: Donor Response to Aid Effectiveness in a Direct Mail Fundraising Experiment


Dean S. Karlan


Yale University; Innovations for Poverty Action; Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Daniel H. Wood


Federal Trade Commission

June 2015

Yale University Economic Growth Center Discussion Paper No. 1038
Yale Economics Department Working Paper No. 130

Abstract:     
We test how donors respond to new information about a charity’s effectiveness. Freedom from Hunger implemented a test of its direct marketing solicitations, varying letters by whether they include a discussion of their program’s impact as measured by scientific research. The base script, used for both treatment and control, included a standard qualitative story about an individual beneficiary. Adding scientific impact information has no effect on average likelihood of giving or average gift amount. However, we find important heterogeneity: large prior donors both are more likely to give and also give more, whereas small prior donors are less likely to give. This pattern is consistent with two different types of donors: warm glow donors who respond negatively to analytical effectiveness information, and altruism donors who respond positively to such information.

Number of Pages in PDF File: 26

Keywords: aid effectiveness, charitable fundraising, warm glow, pure altruism

JEL Classification: D64, H41, L31, O12


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Date posted: April 7, 2014 ; Last revised: July 30, 2015

Suggested Citation

Karlan, Dean S. and Wood, Daniel H., The Effect of Effectiveness: Donor Response to Aid Effectiveness in a Direct Mail Fundraising Experiment (June 2015). Yale University Economic Growth Center Discussion Paper No. 1038; Yale Economics Department Working Paper No. 130. Available at SSRN: https://ssrn.com/abstract=2421943 or http://dx.doi.org/10.2139/ssrn.2421943

Contact Information

Dean S. Karlan (Contact Author)
Yale University ( email )
Box 208269
New Haven, CT 06520-8269
United States
Innovations for Poverty Action ( email )
1731 Connecticut Ave, 4th floor
New Haven, CT 20009
United States
Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab ( email )
E60-246
77 Massachusetts Avenue
Cambridge, MA 02139
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR) ( email )
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Daniel H. Wood
Federal Trade Commission ( email )
600 Pennsylvania Ave NW
Washington, DC 20580
United States
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