The Role of Seed Money and Threshold Size in Optimizing Fundraising Campaigns: Past Behavior Matters!

Fundraising appeals often announce that some funds have already been raised in order to reach the threshold. This article reports results from a field experiment examining the role of seed money in combination with threshold size in fundraising appeals across different targets. Based on a 2x3x3 between-subjects design we investigate charitable behavior of 25,617 households. Findings reveal a novel restriction of using seed contributions as well as the necessity of a communication differentiation by considering past behavior. We show that seed money works excellent when the threshold is high but with a low threshold it could have a baleful influence.



Citation:

Griet Verhaert and Dirk Van den Poel (2010) ,"The Role of Seed Money and Threshold Size in Optimizing Fundraising Campaigns: Past Behavior Matters!", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 630-630 .

Authors

Griet Verhaert, Ghent University, Belgium
Dirk Van den Poel, Ghent University, Belgium



Volume

NA - Advances in Consumer Research Volume 37 | 2010



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