Andrew J. Stocking
1550 Newport Creek Dr.
Ann Arbor, MI 48103
Institutional Affiliation: University of Maryland
Information about this author at RePEc
NBER Working Papers and Publications
|May 2009||Charitable Memberships, Volunteering, and Discounts: Evidence from a Large-Scale Online Field Experiment|
with Andreas Lange: w14941
Despite the increasing use by charities, significant uncertainty exists about optimal online fundraising mechanisms, especially when large donor pools show substantial heterogeneities. We use an online natural field experiment with over 700,000 subjects to test theory on price discounts and show large differences in donation behavior between donors who have previously given money and/or volunteered. For example, framing the charity's membership price as a discount increases response rates and decreases conditional contributions from former volunteers, but not from past money donors. Our study thereby demonstrates the importance of conditioning fundraising strategies on the specifics of past donation dimensions.