It’s me again… Ask avoidance and the dynamics of charitable giving

Author:

Späth Maximilian1

Affiliation:

1. Department of Economics, University of Potsdam , Potsdam 14482, Germany

Abstract

Abstract Charities typically ask potential donors repeatedly for a donation. These repeated requests might trigger avoidance behaviour. Considering that, this article analyses the impact of offering the option to opt-out of receiving future fundraising asks on charitable giving. In a proposed utility framework, any opt-out option decreases the social pressure to donate. At the same time, an unconditional opt-out option induces feelings of gratitude toward the fundraiser, which may lead to a reciprocal increase in donations. The results of a lab experiment designed to disentangle the two channels show no negative impact of the option to avoid repeated asking for donations. Instead, the full model indicates a positive impact of the reciprocity channel. This finding suggests that it might be beneficial for charities to introduce an unconditional opt-out option during high-frequency fundraising campaigns.

Funder

Chair of Microeconomics

University of Goettingen

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics

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