Water the Flowers You Want to Grow? Evidence on Private Recognition and Donor Loyalty

Bittschi, BenjaminORCID: https://orcid.org/0000-0001-7366-7349; Dwenger, Nadja and Rincke, Johannes (2020) Water the Flowers You Want to Grow? Evidence on Private Recognition and Donor Loyalty. CESifo, CESifo Working Paper 8424, 34 p.

Full text not available from this repository.

Abstract or Table of Contents

We study donor loyalty in the context of church membership in Germany. Church members have to make substantial payments to their church but can opt out at any time. In a large-scale field experiment, we examine how private recognition for past payments affects church members' loyalty. We find that recognizing past payments in a letter significantly reduces opt-outs. This effect is driven by members in the bottom quartile of baseline payments to the church. Consistent with optimization frictions prior to the experiment, we observe a spike in opt-outs immediately after treatment for particularly costly memberships.

Item Type: Discussion/ Working Paper (Unspecified)
Additional Information (public): ISSN 2364-1428
Keywords: private recognition, donor loyalty, charitable giving, field experiment, recurring donors
Classification Codes (e.g. JEL): D640, C930
Research Units: Divisions > Former Research Units (until 2020) > European Governance and Public Finance
Status: Published
Related URLs:
Date Deposited: 09 Dec 2020 11:46
Last Modified: 09 Dec 2020 11:46
URI: https://irihs.ihs.ac.at/id/eprint/5571

Actions (login required)

View Item View Item