How Category Reporting Can Improve Fundraising

• 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 category reporting can raise more funds than simple uncategorised reporting. To shed light on these questions, we employ a signalling game framework in which both the donor s donation and his bene ts of being in a higher category are determined endogenously. Our analysis suggests that categorised reporting can always improve fundraising. Indeed, we show that both a high and a low category threshold can increase donations. Categorised reporting, especially with a high threshold, can though also lead to the existence of a low donation equilibrium. Fundraisers may then have to choose between: a safer low threshold and a potentially more lucrative high threshold where they would also have to try to coordinate individuals on the desirable equilibrium.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

fundraising

category reporting

signalling

Publication and Content Type

vet (subject category)

rap (subject category)