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The Effectiveness Of Private Benefits In Fundraising Of Local Charities

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  • Holger Sieg
  • Jipeng Zhang

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

  • Holger Sieg & Jipeng Zhang, 2012. "The Effectiveness Of Private Benefits In Fundraising Of Local Charities," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(2), pages 349-374, May.
    • Handle: RePEc:wly:iecrev:v:53:y:2012:i:2:p:349-374
    DOI: 10.1111/j.1468-2354.2012.00684.x
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    2. Vonțea Andreea-Angela, 2018. "Determinants of the Individuals’ Willingness to Support Nonprofit Organizations – An Integrative Theoretical Perspective," International Conference on Marketing and Business Development Journal, The Bucharest University of Economic Studies, vol. 1(2), pages 84-91, December.
    3. Robert M. Sauer, 2015. "Does It Pay For Women To Volunteer?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(2), pages 537-564, May.
    4. Francisco J. López-Arceiz & Lourdes Torres & Ana J. Bellostas, 2019. "Does Online Accessibility, as a Transparency Mechanism, Play the Same Role in Private and Public Nonprofit Organizations?," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 8(1), pages 42-64.
    5. Michalis Drouvelis & Benjamin M. Marx, 2021. "Dimensions of donation preferences: the structure of peer and income effects," Experimental Economics, Springer;Economic Science Association, vol. 24(1), pages 274-302, March.
    6. Sieg, Holger & Zhang, Jipeng, 2012. "The importance of managerial capacity in fundraising: Evidence from land conservation charities," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 724-734.
    7. Haley Brokensha & Lina Eriksson & Ian Ravenscroft, 2016. "Charity, signaling, and welfare," Politics, Philosophy & Economics, , vol. 15(1), pages 3-19, February.
    8. Joël Berger, 2017. "Are Luxury Brand Labels and “Green” Labels Costly Signals of Social Status? An Extended Replication," PLOS ONE, Public Library of Science, vol. 12(2), pages 1-17, February.
    9. Moon Young Kang & Byungho Park & Sanghak Lee & Jaehwan Kim & Greg Allenby, 2016. "This paper examines the effect of message characteristics on donation behavior using an economic," Journal of Marketing and Consumer Behaviour in Emerging Markets, University of Warsaw, Faculty of Management, vol. 2(4), pages 40-57.

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