The Theory
More than half of fundraising solicitations try to entice donors by including a gift as a token of appreciation. But do the gifts really help boost a charity’s finances?
Some economists at Texas A&M University and elsewhere are skeptical. They tested the use of a variety of donation rewards and concluded that including a gift usually costs more than it’s worth.
The Test
The researchers sent solicitations to 140,000 of the institution’s donors who hadn’t given in at least one year. Some potential donors received a gift with their mailing: either a cheap plastic luggage tag or a nicer leather one. Others did not receive a gift, but they were told that if they made a donation, they could receive one. A control group of potential donors did not receive a gift and were not promised one.
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