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How to Design the Ask? Funding Units vs. Giving Money

Diederich, Johannes ; Epperson, Raphael ; Goeschl, Timo

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Abstract

Unit donations are an alternative fundraising scheme in which potential donors choose how many units of a charitable good to fund, rather than just giving money. Based on evidence from an online experiment with 8,673 participants, we demonstrate that well-designed unit donation schemes can significantly boost giving above and beyond the standard money donation scheme. A decomposition of the underlying mechanisms shows patterns consistent with the conjecture that unit donations increase impact salience and leverage donors’ cognitive biases by changing the metric of the donation space. The potential increase in donations likely outweighs the complications of designing a unit scheme, but requires expert handling of the choice of unit sizes.

Document type: Working paper
Series Name: Discussion Paper Series / University of Heidelberg, Department of Economics
Volume: 0721
Place of Publication: Heidelberg
Edition: Zweite Auflage
Date Deposited: 15 Dec 2022 15:03
Date: December 2022
Number of Pages: 50
Faculties / Institutes: The Faculty of Economics and Social Studies > Alfred-Weber-Institut for Economics
DDC-classification: 330 Economics
Uncontrolled Keywords: aid effectiveness, charitable giving, framing, restricted choice, unit donation
Series: Discussion Paper Series / University of Heidelberg, Department of Economics

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