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Can mass fundraising harm your core business? A field experiment on how fundraising affects ticket sales

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  • Adena, Maja
  • Huck, Steffen

Abstract

Some companies engage in mass fundraising in addition to their core business. Via a corporate social responsibility (CSR) channel this may increase sales. However, ask avoidance, if present, could imply that fundraising activities may harm a company's core business. We examine how asking for donations affects ticket sales of a publicly owned leading opera company. In two large-scale randomized controlled trials with over 50,000 opera visitors, who are asked to donate for an opera-organized social youth project, we find that donations can crowd out ticket expenditure during a campaign. But for the longer run we observe a precisely estimated null effect.

Suggested Citation

  • Adena, Maja & Huck, Steffen, 2021. "Can mass fundraising harm your core business? A field experiment on how fundraising affects ticket sales," Discussion Papers, Research Unit: Economics of Change SP II 2019-304r, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzbeoc:spii2019304r
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    References listed on IDEAS

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    Cited by:

    1. Adena, Maja & Huck, Steffen, 2022. "Personalized fundraising: A field experiment on threshold matching of donations," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 1-20.
    2. Bittschi, Benjamin & Dwenger, Nadja & Rincke, Johannes, 2021. "Water the flowers you want to grow? Evidence on private recognition and donor loyalty," European Economic Review, Elsevier, vol. 131(C).

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    More about this item

    Keywords

    Charitable giving; field experiments; ask avoidance; corporate social responsibility;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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