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Lift and shift: the effect of fundraising interventions in charity space and time

Author

Listed:
  • Sarah Smith

    (Institute for Fiscal Studies and University of Bristol)

  • Kimberley Scharf

    (Institute for Fiscal Studies and University of Warwick)

  • Mark Ottoni-Wilhelm

    (Institute for Fiscal Studies)

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.

Suggested Citation

  • Sarah Smith & Kimberley Scharf & Mark Ottoni-Wilhelm, 2017. "Lift and shift: the effect of fundraising interventions in charity space and time," IFS Working Papers W17/20, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:17/20
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    More about this item

    Keywords

    Warm glow; donations; substitution; intertemporal substitution;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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