Lift and Shift: The Effect of Fundraising Interventions in Charity Space and Time

Abstract

Fundraising interventions may lift donations and/or shift their composition and timing. Using data rich in both the charity space and time dimensions, we find that major fundraising appeals lift donations to the appeal charity and that this increase is not offset by lower donations later in time. Strikingly, major appeals also forward-shift donations to other (nonappeal) charities that are offset by lower donations later. To understand these response patterns, we introduce a two-period, two-charity “ lift-shift” model. The model indicates that the observed response patterns are possible only if warm glow is substitutable, both intertemporally and between charities. (JEL D64, H12, H41, L31, Q54)