The Effect of Social Information on Giving from Lapsed Donors: Evidence from a Field Experiment

Using data from an experiment carried out by a large nonprofit organization, this paper finds that lapsed donors who received a solicitation letter referencing a relatively high donation made by another donor (high social information) were more generous in giving, but overall less likely to make a donation, relative to the baseline (low social information) group. After using the propensity score matching to correct for pretreatment differences in the two experimental groups, the estimated effect of high social information on the average donation amount is an increase of $14.95 (45 %). However, high social information is also found to reduce the probability a lapsed donor will give by 4.1 %. Thus, high social information can have potentially offsetting effects when applied to lapsed donors. Nonprofits should consider this trade-off when employing social information fundraising techniques to solicit donations from lapsed donors.     

ROUND GIVING: A FIELD EXPERIMENT ON SUGGESTED DONATION AMOUNTS IN PUBLIC‐TELEVISION FUNDRAISING

Direct‐mail fundraisers commonly provide a set of suggested donation amounts to potential donors, in addition to a write‐in option. Standard economic models of charitable fundraising do not predict an impact of suggested amounts on charitable giving. However, our field experiments on direct‐mail solicitations to over 10,000 members of a public television station tell a different story. We find that changing one of the suggested amounts in an ask string from $100 to $95 reduces the number of gifts greater than or equal to $90 by more than 30%. This contrasts with our finding that in three independent comparisons, increasing the entire vector of suggested amounts by 20%–40% reduces the probability of giving by approximately 15%, with little effect on the average size of the gift. Both manipulations lead to a larger proportion of write‐in donations, even as they reduce the number of total gifts. We propose a simple behavioral theory to explain the data: many donors prefer to give round numbers, and donors incur a cognitive cost when choosing to give a nonsuggested amount. (JEL C9, H4)     

CHARITIES, NO; LOTTERIES, NO; CASH, YES: MAIN EFFECTS AND INTERACTIONS IN A CANADIAN INCENTIVES EXPERIMENT

The effects on response rates to mail surveys of prepaymentcash incentives, charitable donations, and the chance to wina lottery prize are examined in a true experimental design.A survey on environmental issues was conducted during the fallof 1994 among 3,088 households drawn from the Grand River watershedregion of southwestern Ontario, Canada. The 20-cell incentivesexperiment crossed three levels of prepaid monetary cash incentive($2, $5, and $10) with a control group (no cash incentive),plus the offer to make a charitable donation ranging from $2to $10 on behalf of the respondent, or participation in a lotteryfor prizes of $200. The overall response rate to the survey,with three follow-ups, was 70.7 percent with the effects ofthe prepaid cash rewards demonstrated, but not those for thelottery or charitable donations. Logistic regression analysisof response rate supports a main effects model for cash incentivesbut does not support either of two alternative models for maineffects of the lottery and charitable donations or interactions.Further analysis demonstrates a pattern of earlier responseas a result of prepaid incentives. The findings are discussedin terms of their cost-benefit implications and with respectto conceptualizations of respondents' motives for completingmail questionnaires.     

Majority size and conformity behavior in charitable giving: Field evidence from a donation-based crowdfunding platform in Japan

A charitable donor typically imitates the majority contribution of other donors. This study examines the relationships between majority size and this so-called donor’s conformity behavior, by empirically investigating the impacts of multiple earlier donations on the donation of a subsequent donor to JapanGiving, a donation-based crowdfunding platform in Japan. This analysis is possible because the platform’s webpage displays the previous donation amounts in chronological order, thus allowing us to examine the modal amount of more recent donations. By using data on 9989 actual donations, our dynamic panel analysis suggests that when the number of most recent continuous modal donations increases, the likelihood that a subsequent donor matches the modal amount increases. This result supports the notion that a donor’s conformity behavior is more likely to occur when a greater proportion of other donors give a similar amount. Furthermore, the effects of continuous modal donations are strongly observed for low monetary ranges. We interpret that initiating further cooperation among a large number of less cooperative other donors would become harder, or individuals would obtain an excuse for less cooperation due to the others’ behaviors. Finally, we discuss how our findings connect economic studies of charity and social psychology studies of conformity and could help improve the effectiveness of fundraising by charities.     

CATEGORY REPORTING IN CHARITABLE GIVING: AN EXPERIMENTAL ANALYSIS

We examine the effect of category reporting on charitable giving, aiming to disentangle the publicity effect from the category effect. We compare subjects' donation decisions under three reporting plans: category reporting, where an honored category is prespecified and qualifying subjects were publicly acknowledged; category no reporting, where the same category was utilized but the qualifying donors were not publicly acknowledged; and no reporting, where neither category setting nor public reporting was utilized. We found that category reporting significantly increased average donations relative to no reporting, and that this superiority was due to the dual presence of the category setting and the public reporting. The category setting anchors donations toward the category threshold and increased the average donations when the threshold was modestly set. The public reporting, on the other hand, only worked at the highest category level. It further increased the donations by providing extra social‐image benefits. (JEL C90, C91, D64, H00)     

Exploring the Use of the Stages of Change Model to Increase Organ Donations Among African Americans

Abstract

The success of organ transplants is affected by the degree of antigen match between donor and recipient. With organ transplants among African Americans, finding a good antigen match is difficult. While the consent rate for organ donations among Caucasians is 50%, this rate among African Americans is only 12%. The resulting ratio of donors to “recipients” is 1 to 9 in African Americans. The majority of organs received by African Americans come from Caucasian donors, thereby reducing the probability of an antigen match and increasing the probability of organ rejection. These circumstances could be improved if the organ donation rate eamong African Americans was increased. There is some empirical support for the theory that behavior change occurs through identifiable stages. This paper presents evidence for the construct validity of a stage of change measure suitable for use in designing and evaluating attempts to promote organ donations in the African American community. Use of this measure also permits clinicians to assess how receptive a client will be to organ donation promotional material. Use of this measure offers the possibility of refining approaches to organ donations among African Americans. Increases in the donor rate will result in a larger pool of antigen compatible organs in this subpopulation.     

CHARITABLE GIVING,EMOTIONS, AND THE DEFAULT EFFECT

We report an experiment to study the effect of defaults on charitable giving. In three different treatments, participants face varying default levels of donation. In three other treatments that are paired with the first three, they receive the same defaults, but are informed that defaults are thought to have an effect on their donation decisions. The emotional state of all individuals is monitored throughout the sessions using Facereading software, and some participants are required to report their emotional state after the donation decision. We find that the level at which a default is set has no effect on donations, and informing individuals of the possible impact of defaults also has no effect. Individuals who are happier and in a more positive overall emotional state donate more. Donors experience a negative change in the valence of their emotional state subsequent to donating, when valence is measured with Facereading software. This contrasts with the self‐report data, in which donating correlates with a more positive reported subsequent emotional state. (JEL C91)     

Organ donation and reciprocity

The willingness to donate organs post-mortem varies considerably both across and within countries. Linking these differences to personal characteristics is an important focus of research investigating the supply of donor organs. Anecdotal evidence and previous findings indirectly suggest that the desire to reciprocate others’ (un)willingness to donate organs plays an important role in the decision to become an organ donor. We use individual measures of reciprocity in a large, representative survey in Germany and relate these to organ donation attitudes and behavior. Higher positive reciprocity is associated with a higher general willingness to donate organs, but it does not correlate with donor card possession. Individuals with higher negative reciprocity have a lower general willingness to donate organs and are less likely to have a donor card. Our findings open up the possibility of a double dividend of measures that increase organ donations. These could yield an additional increase of organ donations via a feedback loop through reciprocity.     

Reducing Public Misinformation About Organ Donation: An Experimental Intervention

Abstract

The shortage of life-saving human organs for transplantation today is a growing and international problem. A recent survey in this Journal found that people with “more accurate information about organ donation practices are more likely to be organ donors (r= .225, p< .01)” (Nickols, Stack, Viviano, & Whitney, 2008, p. 240). How much can a factual 20-minute message about organ donation significantly increase people's knowledge and pro-donation behavior? In this field experiment, 101 students in two urban colleges completed a one-page survey before and after an expert's 20-minute message. The survey assessed participants' knowledge about organ donation from 0 (low) to 40 (high), biodata, self-reported experiences, and behavior in the past (registered organ donor) and future (consider becoming a donor). As hypothesized: (1) Pre-message knowledge about organ donation was moderate (mean = 21.8 on the 0-40 scale), and rose significantly after the message (mean = 28.6, p < .01). (2) This knowledge positively correlated with consideration to register in the future as an organ donor (r = +.41; p < .001 post-presentation). (3) However, there was no significant correlation of prior donor registration with knowledge prior to the message (r = +.08) or after the message (r = +.04). From these findings, it seems a brief FAQ fact-sheet or DVD would be highly useful to increase people's accurate knowledge about donations.     

AN EXPERIMENTAL STUDY OF ALTERNATIVE CAMPAIGN FINANCE SYSTEMS: TRANSPARENCY,DONATIONS, AND POLICY CHOICES

We experimentally study the transparency effect of alternative campaign finance systems on donations, election outcomes, policy choices, and welfare. Three alternatives are considered: one where donors' preferences and donations are unobserved by the candidate and public; one where they are observed by the candidate but not the public; and one where they are observed by all. We label them full anonymity (FA), partial anonymity (PA), and no anonymity (NA), respectively. We find that in NA and PA candidates consistently respond to donations by choosing policies favoring the donors. FA, in contrast, is the most successful in limiting the influence of donations on policy choices. Donors benefit greatly from the possibility of donations whereas social welfare may be harmed in some treatments. To our knowledge, this article is the first to investigate the effect of different campaign finance systems distinguished by their transparency level. (JEL D72)     

Giving Mexico: Giving by Individuals

This paper offers a comprehensive and up-to-date analysis of one of the most important expressions of philanthropy in Mexico: giving by individuals. The data we present have been produced using a survey specifically redesigned to collect information on the giving practices of Mexicans, a national survey on giving and volunteering. We offer a brief literature review and then proceed to provide our results on the incidence of money donation and mean annual donation patterns among different segments of the Mexican population, test different variables as determinants of giving and provide the first estimation of the total value of individual money donation for a given year. We also provide findings on in-kind donations and an assessment of the evolution of individual giving to nonprofit organizations.     

Changing college student perceptions and participation in organ donation: A classroom and service learning intervention

Each day an average of 18 people die from the lack of available organs for transplantation and the demand for organ, eye and tissue donation continues to vastly exceed the number of available donors. The single most effective method in addressing this issue remains programmatic efforts to encourage and support organ donation. The purpose of this article is to introduce a creative and comprehensive approach to enhance awareness, participation and organ donor registry among young adults. The programmatic intervention utilized a service learning model within a Freshman Year Seminar course focused on organ donation. The partnership between classroom-based curriculum and experiential learning served to increase knowledge and enhance positive attitudes toward organ donation, as measured by pre-post tests and student reflections in portfolio assessments. The number of organ donor registrants was increased as a result of student outreach activities. Results are discussed in terms of implications for increasing donation.     

A field experiment on the impact of a prior donor’s social status on subsequent charitable giving

We study the effect of a prior donor on subsequent charitable giving in a natural field experiment and investigate in particular whether his social status matters for subsequent giving. To do so, we trailed a person asking for donations in Cologne’s streetcar network while (1) either implementing an initial donor or not and (2) varying the apparent social status of the initial donor. We find that other passengers are more prone to give when there is an initial donor, with this effect being amplified when he seems to have a high social status. Further analyses reveal that women tend to react stronger than men to the prior donor’s status.     

Outpatient marijuana treatment for adolescents. Economic evaluation of a multisite field experiment

An economic evaluation of five outpatient adolescent treatment approaches (12 total site-by-conditions) was conducted. The economic cost of each of the 12 site-specific treatment conditions was determined by the Drug Abuse Treatment Cost Analysis Program (DATCAP). Economic benefits of treatment were estimated by first monetizing a series of treatment outcomes and then analyzing the magnitude of these monetized outcomes from baseline through the 12-month follow-up. The average economic costs ranged from $90 to $313 per week and from $839 to $3,279 per episode. Relative to the quarter before intake, the average quarterly cost to society for the next 12 months (including treatment costs) significantly declined in 4 of the 12 site-by-treatment conditions, remained unchanged in 6 conditions, and increased in 2 treatment conditions (both in the same site). These results suggest that some types of substance-abuse intervention for adolescents can reduce social costs immediately after treatment.     

What Works at Work? Toward an Integrative Model Examining Workplace Campaign Strategies

Many US employees are regularly asked to give charitable donations through work. The techniques used to solicit workplace donations vary. Drawing on a nationally representative survey, the study used a sample of donor responses to examine the effectiveness of several widely used campaign strategies: donor choice, company matching, public recognition, and solicitation support. The theoretical framework built on workplace research by Barman (2007) and established charitable giving mechanisms (Bekkers and Wiepking 2011a, 2011b). The research question was, “Do workplace campaign strategies lead employees to participate and to make (larger) donations in the workplace?” The positive outcomes of the strategies, aside from donor choice, were limited, suggesting that tried‐and‐true workplace fundraising strategies warrant additional scrutiny. The findings are meaningful to campaign managers seeking to identify approaches that generate workplace giving. For researchers, the results confirm growing attention to the importance of purpose‐based giving in comparison with community‐based giving.     

Gambling decisions: an early intervention program for problem gamblers

An implementation and one-year follow-up of the Gambling Decisions program attempted to answer several important questions. First, is controlled gambling a viable treatment option for some gamblers? Can earlier stage problem gamblers be separated for treatment from those with more severe problems? Finally, would problem gamblers utilize a community health agency for treatment of their excessive gambling? A pretest/posttest design was chosen where the efficacy of the program was assessed using repeated measures ANOVA analysis. Results showed that an average loss of $608 over a 4-week period was reduced to $113 immediately after the 6-week program and to a loss of $73 at 12 months. The average number of hours spent gambling per 4 weeks was significantly reduced from 23.5 at pretest to 6.5 at the 12 month posttest. Significant decreases were also observed in the number of days per week that clients gambled, and clients reported significant reductions in everyday life problems related to gambling after completing the program.     

The effects of physical therapists' guidance on improvement in a strength-training program for the frail elderly

Elderly participants experiencing difficulty in chair rising and with a maximum knee-extensor torque below 87.5 N . m were randomized to different versions of a strength-training program for the knee-extensors: to a high-guidance group (HG; two group sessions supervised by a physical therapist and one unsupervised home session per week, n = 17), a medium-guidance group (MG; one supervised group session and two unsupervised home sessions per week, n = 16), or a control group (C; no exercise, n = 16). Maximal isometric knee strength increased more in HG than in C (p = .03) and with increasing guidance (p = .03). The effect was mainly the result of participants with low initial strength. Walking speed increased more for HG than for C (p = .02) and than for MG (p = .06). No statistically significant improvements were seen on other functional tests. In summary, the study shows a trend toward better results with more supervision, but more and larger studies are needed to confirm this.     

Costs,Benefits, and Management Considerations of a Prepaid Student Dental Health Plan

Abstract

The Student Dental Health Program (SDHP) is an open panel, prepaid dental insurance plan at the University of Alabama in Birmingham. The program was developed primarily to provide optimal dental health service; however the SDHP also serves educational and research functions that are consistent with the objectives of the university. The student bodies of the Schools of Dentistry, Medicine, Nursing, and Optometry constitute the enrollee population.

Total cost rose from $18,418 in 1969–70 with 862 enrollees, to $70,930 in 1975–76 with 1,618 enrollees. During the same period the number of procedures completed increased from 2,868 to 6,796, with the average cost per procedure increasing from $6.42 to $10.44. The number of restorative services declined and preventive services increased. In 1976–77 benefits per student treated were estimated at $80 as compared to the annual fee of $48. The value of unmet needs upon entrance to the program averaged $59 per enrollee in 1974–75. By 1976–77 this figure was reduced to $26 due to implementation of an initial screening. The program is self-supporting due to a variety of cost containment measures. On balance, the program can be considered successful and beneficial to all parties concerned.     

Cost analysis of the strengthening families program in reducing time to family reunification among substance-affected families

Decision makers typically face uncertainty in determining whether the outcomes of promising child welfare interventions justify the investment. Despite repeated calls for cost analysis in child welfare, original studies that evaluate the costs and effects of child welfare programs have been limited. Moreover, no cost analyses have focused on family reunification programs that address the needs of substance-affected families. The purpose of this study was to evaluate the costs and effects of a federally funded implementation of the Strengthening Families Program (SFP), a 14-week family training curriculum, on time to reunification with a substance-involved child welfare population. Based on event history analysis, we find the typical child participating in SFP spends 190 fewer days in out of home care when compared to a propensity score matched comparison group of children in out-of home care receiving treatment as usual. Re-entry rates between the two groups were not significantly different at follow-up. At an average out-of-home care rate of $86 per child per day in this state, SFP saves approximately $16,340 per participating child in out-of-home care costs. From a cost–benefit perspective, every $1 invested in SFP yields an average savings of $9.83 in this Midwestern demonstration.     

Modelling the role of anticipated emotions in blood donor behaviour: A cross-sectional study

For blood transfusion centres, studying anticipated emotions (AEs) related to blood donation is essential, since these variables influence donation decision. For this reason, this work addresses the need to identify the antecedents and consequences of AEs, which will help explain their origin and their role in donation behaviour. Our purpose is to make further progress with the application of the AE framework in a non-profit context, by analysing how AEs are generated and how they influence decision-making. This study aims to design and validate an explanatory model of donation intention, where motivations and attitude towards donation are direct antecedents of AEs, while AEs, motivations and attitude towards donation act as direct antecedents of intention. Moreover, it has been also considered how the type of donor influences the proposed model as a moderating factor. The final sample is comprised of 35,982 active donors, inactive donors and non-donors. Data was obtained through an online questionnaire, with the collaboration of 14 of the 17 Spanish blood transfusion centres, as well as some universities. Results indicate that (1) AEs, motivations and attitude towards donation are direct antecedents of donation intention, (2) motivations and attitude towards donation are direct antecedents of AEs, and (3) donation experience moderates the relationships between motivations, attitude towards donation, AEs, and donation intention. These results indicate several operational implications that will enable blood transfusion centres to better design and target donation promotion campaigns according to type of donor. Furthermore, the results will let centres assess whether placing value on donation motivation and attitude towards donation can bolster positive AEs, diminish negative AEs and have a direct effect on donation intention.