Gifts to incentivise donations from young consumers: an ethical tension

Abstract

Purpose To increase charitable donations, not-for-profit organisations sometimes include a pre-giving incentive such as a monetary gift alongside a request to donate. Little is known about how monetary pre-giving incentives impact subsequent donation intentions, particularly for young consumers who are an important market for the not-for-profit sector. Using the principles of reciprocity, this paper aims to examine whether the value of monetary pre-giving incentives induces obligation (i.e. a negative psychological state) and/or gratitude (i.e. a positive psychological state) and whether this subsequently impact young consumers’ initial donation amount and future donation intention. Design/methodology/approach This research uses a one-factor, three-level between-subjects experimental design (n = 274) to test the effect of different values of pre-giving incentives on gratitude, obligation, initial donation amount and future donation intentions of young consumers. Findings Higher value pre-giving incentives increase young consumers’ experience of obligation and subsequent donation intention as well as future donation intention. Unexpectedly, gratitude towards the organisation was not influenced by the value of the pre-giving incentive but did increase obligation. Originality/value This research highlights an ethical tension about the use of pre-giving incentives to solicit donations from young consumers: while this strategy is effective, it activates an obligation that can negatively impact young consumers’ wellbeing. As such, it also contributes to extending the limited empirical examination of the ethics of fundraising. Theoretically, this research extends understanding of the distinct but simultaneous mechanisms of gratitude and obligation, which has not received sufficient research attention, generated by the norm of reciprocity within the not-for-profit context.