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How Can Bill and Melinda Gates Increase Other People’s Donations to Fund Public Goods?

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  • Karlan, Dean
  • List, John

Abstract

We conducted a fundraising experiment with an international development nonprofit organization in which a matching grant offered by the Bill and Melinda Gates Foundation raised more funds than one from an anonymous donor. The effect is strongest for solicitees who previously gave to other BMGF-supported, poverty charities. With supporting evidence from two other fundraising experiments as well as a survey experiment, we argue this is consistent with a quality signal mechanism. Alternative mechanisms are discussed, and not ruled out. The results help inform theories about charitable giving decision-making, and provide guidance to organizations and large donors on how to overcome information asymmetries hindering fundraising.

Suggested Citation

  • Karlan, Dean & List, John, 2020. "How Can Bill and Melinda Gates Increase Other People’s Donations to Fund Public Goods?," CEPR Discussion Papers 15221, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15221
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    More about this item

    Keywords

    Public goods; Charitable fundraising; Asymmetric information; Matching grant;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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