Donor recognition: A double‐edged sword in charitable giving

Abstract

AbstractPrevious studies discover confounding results on how donor recognition affects individual charitable giving. To answer the questions of how different donor recognition schemes affect individual giving and what type is more effective as a marketing strategy to meet different fundraising goals, we conducted a field experiment in China with three donor recognition types: voluntary, involuntary, and mandatory donor recognition. We used social media to recognize donors and verified the field experiment results with naturally occurring data. We observed similar behavioral patterns in both samples. The results of this study explain the mixed results from previous studies, suggesting that there is no one‐size‐fits‐all approach for recognizing donors. Decision makers of nonprofit organizations need to select the appropriate type of donor recognition based on their fundraising goals.