Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2018-05-04
Number: 18-044/VII
Author-Name: Toke R. Fosgaard
Author-Email: tf@ifro.ku.dk
Author-Workplace-Name: University of Copenhagen
Author-Name: Adriaan (A.R.) Soetevent
Author-Email: a.r.soetevent@rug.nl
Author-Workplace-Name: University of Groningen; Tinbergen Institute, The Netherlands
Title: Promises Undone: How Committed Pledges Impact Donations to Charity
Abstract: The declining use of cash in society urges charities to experiment with digital payment instruments in their off-line fund raising activities. Cash and card payments differ in that the latter do not require individuals to donate at the time of the ask, disconnecting the decision to give from the act of giving.  Evidence shows that people who say they will give mostly do not follow through. Our theory shows that having people to formally state the intended amount may alleviate this problem. We report on a field experiment the results of which show that donors who have pledged an amount are indeed more likely to follow through. The firmer the pledge, the more closely the amount donated matches the amount that was pledged. 45% of all participants however refuses to pledge. This proves that donors value flexibility over commitment in intertemporal charitable giving.
Classification-JEL: C93, D64, D91, H41
Keywords: Charitable fundraising,  Field experiment, Image motivation
File-Url: https://papers.tinbergen.nl/18044.pdf
File-Format: application/pdf
File-Size: 3482347 bytes
Handle: RePEc:tin:wpaper:20180044