A Field Experiment on Threshold Matching of Donations

Authors:

Adena, Maja (WZB Berlin)
Huck, Steffen (WZB Berlin and UCL)

Abstract:

We study a form of threshold matching in fundraising where donations above a certain threshold are topped up with a fixed amount. We show theoretically that threshold matching can induce crowding in if appropriately personalized. In a field experiment, we explore how thresholds should be chosen depending on past donations. The optimal choice of thresholds is rather bold, approximately 75% above past donations. Additionally, we explore how thresholds should be set for new donors as a function of their personal characteristics and demonstrate the benefits of personalization as opposed to setting a general threshold that applies to all recipients of a fundraising call.

Keywords:

charitable giving; field experiments; matching donations; personalization

JEL-Classification:

C93; D64; D12

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A Field Experiment on Threshold Matching of Donations
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