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How category reporting can improve fundraising

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Abstract

Many fundraisers report donations using categories such as more than £ 1000, more than £ 10,000, etc. One naturally wonders how we should categorise donations and whether categorising raises more than simple uncategorised reporting. To answer these questions, we employ a signalling game framework in which both the donor's donation and his benefits of being in a higher category are determined endogenously. We find that categorised reporting can always improve fundraising. Both high and low category thresholds can increase donations, with prior beliefs determining which is better. While categorising can lead to the existence of a low donation equilibrium, it is less problematic if signalling benefits are low.

Details

Original languageEnglish
Pages (from-to)73-90
Number of pages18
JournalJournal of Economic Behavior & Organization
Volume87
Early online date23 Jan 2013
DOIs
Publication statusPublished - Mar 2013
Peer-reviewedYes

Keywords

    Research areas

  • Category reporting, Esteem, Fundraising, Signalling

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