Lift and Shift: The Effect of Fundraising Interventions in Charity Space and Time

55 Pages Posted: 4 Oct 2017 Last revised: 9 Oct 2017

See all articles by Kimberley A. Scharf

Kimberley A. Scharf

University of Warwick - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)

Sarah Smith

University of Bristol; Institute for Fiscal Studies (IFS)

Mark Wilhelm

Indiana University Purdue University Indianapolis (IUPUI) - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: September 2017

Abstract

Fundraising interventions may lift donations and/or shift their composition and timing, making it important to study their effect across charity space and time. We find that major fundraising appeals lift total donations, but surprisingly shift donations to other charities across time. To explain this, we develop a two-period model with two sources of warm glow that relates donation responses to underlying preference parameters. A dynamic framework, combined with rich data, provides opportunities to identify substitutability/complementarity in warm glow. The observed pattern is possible only if the two sources of warm glow are substitutes and warm glow is intertemporally substitutable.

Keywords: Warm glow; donations; substitution; intertemporal substitution

JEL Classification: D12, D64, H41

Suggested Citation

Scharf, Kimberley and Smith, Sarah and Wilhelm, Mark, Lift and Shift: The Effect of Fundraising Interventions in Charity Space and Time (September 2017). CEPR Discussion Paper No. DP12338, Available at SSRN: https://ssrn.com/abstract=3047325

Kimberley Scharf (Contact Author)

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom
44 24 76523 742 (Phone)
44 24 76523 032 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

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Germany

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Sarah Smith

University of Bristol ( email )

University of Bristol,
Senate House, Tyndall Avenue
Bristol, BS8 ITH
United Kingdom

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Mark Wilhelm

Indiana University Purdue University Indianapolis (IUPUI) - Department of Economics ( email )

425 University Boulevard
Indianapolis, IN 46202-5140
Germany
317-274-4756 (Phone)
317-274-2347 (Fax)

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