4.5 Article

Does fundraising create new giving?

Journal

JOURNAL OF PUBLIC ECONOMICS
Volume 145, Issue -, Pages 82-93

Publisher

ELSEVIER SCIENCE SA
DOI: 10.1016/j.jpubeco.2016.11.009

Keywords

Altruism; Philanthropy; Charitable giving; Competition

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Despite an extensive literature on the impacts of a variety of charitable fundraising techniques, little is known about whether these activities increase overall giving or merely cause donors to substitute away from other causes. Using detailed data from Donorschoose.org, an online platform linking teachers with prospective donors, I examine the extent to which matching grants for donations to certain requests affect giving to others. Eligibility for matches is determined in entirely by observable attributes of the request, providing an exogenous source of variation in incentives to donate between charities. I find that, while matches increase giving to eligible requests, they do not appear to crowd out giving to similar ones, either contemporaneously or over time. (C) 2016 Elsevier B.V. All rights reserved.

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