Lift and Shift: The Effect of Fundraising Interventions in Charity Space and Time Kimberley Scharf Sarah Smith Mark Ottoni-Wilhelm Discussion Paper 17 / 687 22 September 2017 Department of Economics University of Bristol Priory Road Complex Bristol BS8 1TU United Kingdom Lift and Shift: The Effect of Fundraising Interventions in Charity Space and Time Kimberley Scharf (University of Birmingham) Sarah Smith (University of Bristol) Mark Ottoni-Wilhelm (IUPUI and IU Lilly Family School of Philanthropy) Abstract Fundraising interventions may lift donations and/or shift their composition and timing, making it important to study their effect across charity space and time. We find that major fundraising appeals lift total donations, but surprisingly shift donations to other charities across time. To explain this, w e develop a two-period model with two sources of warm glow that relates donation responses to underlying preference parameters. A dynamic framework, combined with rich data, provides opportunities to identify substitutability/complementarity in warm glow . The observed pattern is possible only if the two sources of warm glow are substitutes and warm glow is intertemporally substitutable. Keywords: Warm glow; donations; substitution; intertemporal substitution. JEL codes: H41, D12, D64 * We are grateful to the Charities Aid Foundation and particularly to Susan Pinkney for making the data available. We have received helpful comments on earlier versions at numerous seminars, workshops and conferences. The authors declare that they have no relevant or material interests that relate to the research described in this paper. Contact information
[email protected] (Scharf),
[email protected] (Smith; corresponding author),
[email protected] (Ottoni-Wilhelm).