David Herberich

One of the most important outstanding questions in fundraising is whether donor premiums, or gifts to prospective donors, are effective in increasing donations. Donors may be motivated by reciprocity, making premium recipients more likely to donate and give larger donations. Or donors may dislike premiums, preferring instead to maximize the value of their donations to the charity; in this case donor premiums would be ineffective. We conduct a field experiment in conjunction with the fundraising campaign of a major university to examine these questions. Treatments include a control, an unconditional premium with two gift quality levels, and a set of conditional premium treatments. The conditional treatments include opt-out and opt-in conditions to test whether donors prefer to forego ...

The use of directed giving - allowing donors to target their gifts to specific organizations or functions - is pervasive in fundraising, yet little is known about its effectiveness. We conduct a field experiment at a public university in which prospective donors are presented with either an opportunity to donate to the unrestricted Annual Fund, or an opportunity of donating to the Annual Fund and directing some or all of their donation towards the academic college from which they graduated. While there is no effect on the probability of giving, donations are significantly larger when there is the option of directing. However, the value of the option does not come directly from use, as very few donors choose to direct their gift.

Published: Eckel, Catherine C. & Herberich, David H. & Meer, Jonathan, 2017. "A field experiment on directed giving at a public university," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 66(C), pages 66-71. citation courtesy of