Mail Solicitations Research Articles

Using Scammers’ Data to Estimate the Impact and Importance of Preventing Repeat Mail Fraud Victimization

Abstract This study examines the frequency and cost of repeat mail fraud victimization in the United States using longitudinal data from a unique source: records from four scam enterprises that operated over a nearly 20-year period. Findings show that most mail fraud victims experience repeat victimization and a small percentage account for most of the losses. Sixty-two per cent of victims responded to more than one mail solicitation. Chronic victims, who responded more than 20 times, comprised 8.8 per cent of the sample and lost $1,771, on average. Findings suggest the need for early intervention to prevent repeat and chronic victimization, thereby reducing the harm for victims. Limitations and implications for future research are discussed.

Spinal manipulation and mobilisation among infants, children, and adolescents: an international Delphi survey of expert physiotherapists

ABSTRACT Objective The aim of this study was to establish international consensus regarding the use of spinal manipulation and mobilisation among infants, children, and adolescents among expert international physiotherapists. Methods Twenty-six international expert physiotherapists in manual therapy and paediatrics voluntarily participated in a 3-Round Delphi survey to reach a consensus via direct electronic mail solicitation using Qualtrics®. Consensus was defined a-priori as ≥75% agreement on all items with the same ranking of agreement or disagreement. Round 1 identified impairments and conditions where spinal mobilisation and manipulation might be utilised. In Rounds 2 and 3, panelists agreed or disagreed using a 4-point Likert scale. Results Eleven physiotherapists from seven countries representing five continents completed all three Delphi rounds. Consensus regarding spinal mobilisation or manipulation included: Manipulation is not recommended: (1) for infants across all conditions, impairments, and spinal levels; and (2) for children and adolescents across most conditions and spinal levels. Manipulation may be recommended for adolescents to treat spinal region-specific joint hypomobility (thoracic, lumbar), and pain (thoracic). Mobilisation may be recommended for children and adolescents with hypomobility, joint pain, muscle/myofascial pain, or stiffness at all spinal levels. Conclusion Consensus revealed spinal manipulation should not be performed on infants regardless of condition, impairment, or spinal level. Additionally, the panel agreed that manipulation may be recommended only for adolescents to treat joint pain and joint hypomobility (limited to thoracic and/or lumbar levels). Spinal mobilisation may be recommended for joint hypomobility, joint pain, muscle/myofascial pain, and muscle/myofascial stiffness at all spinal levels among children and adolescents.

Donor Responses to Out-group Beneficiary Profiles in Direct Mail Fundraising: A Canadian Case Study

ABSTRACT Charities that fundraise from the public can feel competing pressures to be as efficient as possible in their fundraising efforts and to accurately and ethically reflect their services and beneficiaries in their fundraising materials. At the same time, the number of donors giving to charity is in a long-term decline. These pressures may lead charitable managers to make trade-offs when designing and implementing their fundraising programs. In this case study, two direct mail solicitations using different types of beneficiaries from one Canadian charity are examined to see how those trade-offs affect fundraising results. When aggregated, the differences between an out-group beneficiary profile and an in-group beneficiary profile appear subordinate to larger market-level externalities when all else is held equal. When disaggregated, there appears to be a change in donor behavior at the lower end of donation amounts in some markets and community types. The results of this study suggest that fundraiser tactics that narrow in on the preferences of a small segment of donors may be contributing to declining numbers of donors.

Recruitment Strategies for Nurse Enrollment in an Online Study.

Although there is a great deal of literature regarding effective recruitment and challenges of recruiting specific patient populations, there is less known about best practices for recruitment of nurses as study subjects. The purpose of this article is to report our experience with recruitment and retention for a randomized trial of an online educational program to prepare oncology nurses to discuss oncology clinical trials with patients. The study population included currently employed oncology nurses with direct patient interaction. There were three phases of this study: (1) qualitative interviews, (2) a pilot test, and (3) the randomized trial. Phase 3 was rolled out in five waves of recruitment. The distinct phases of the study-and the gradual roll out of recruitment during Phase 3-allowed us to test and refine our recruitment and retention methods for the randomized trial. Upon analysis of our response rate and attrition after the first wave of recruitment in Phase 3, we made several changes to improve recruitment and retention, including adding incentives, shortening the survey, and increasing the number of reminders to complete the program. The response rate was higher when we used both e-mail and U.S. postal mail solicitations. After the first wave of recruitment in the final phase, changes in our strategies did not increase our overall response rate significantly; however, the rate of attrition following baseline declined. Recruitment planning is an important component of successful clinical research. The use of the Internet for both recruitment of subjects and testing of interventions remains a cost-effective and potentially high yield methodology. Our research demonstrated several successful approaches to yield increased participation and retention of subjects, including seeking formal relationships with professional organizations as sponsors or supporters, providing meaningful incentives to participants, keeping surveys or questionnaires as short as possible, and planning multiple follow-up contacts from the outset.

Engineering warm fuzzies: Applying user experience principles to create philanthropic experiences — part one: direct mail solicitations

As we have moved firmly into the 21st century and as our society and its expectations are continuously evolving, so must our higher education advancement practices. Rather than asking ‘How do we want alumni and donors to engage with our universities?’, we must ask ‘How are these individuals already intuitively engaging the world?’ Instead of falling into the trap of thinking ‘What are global best practices in higher education advancement?’, we should be asking ‘Which global companies are curious and responsive in their interaction with humans, and what can we learn from them?’ In answering these questions, this paper tests a human-centred solicitation approach via three primary channels: mail, phone and e-mail. For each channel, multiple tests are performed and the principles and tools of human-centred design and user experience are implemented, including ethnographic interviews, user personas and A/B testing. The results of these tests lead to the recommendation of a user-centred approach to philanthropic interactions that is constantly testing and evolving practices. Now more than ever, consciously building and testing systems centred around removing obstacles impeding giving defines the work of the modern advancement professional.

How Can Bill and Melinda Gates Increase Other People's Donations to Fund Public Goods?

We develop a simple theory which formally describes how charities can resolve the information asymmetry problems faced by small donors by working with large donors to generate quality signals. To test the model, we conducted two large-scale natural field experiments. In the first experiment, a charity focusing on poverty reduction solicited donations from prior donors and either announced a matching grant from the Bill and Melinda Gates Foundation, or made no mention of a match. In the second field experiment, the same charity sent direct mail solicitations to individuals who had not previously donated to the charity, and tested whether naming the Bill and Melinda Gates Foundation as the matching donor was more effective than not identifying the name of the matching donor. The first experiment demonstrates that the matching grant condition generates more and larger donations relative to no match. The second experiment shows that providing a credible quality signal by identifying the matching donor generates even more and larger donations than not naming the matching donor. Importantly, the treatment effects persist long after the matching period, and the quality signal is quite heterogeneous--the Gates' effect is much larger for prospective donors who had a record of giving to poverty-oriented charities. These two pieces of evidence support our model of quality signals as a key mechanism through which matching gifts inspire donors to give.

Unsecured Credit Supply, Credit Cycles, and Regulation

This paper explores the dynamics of unsecured credit supply over the recent credit cycle and around the passage of the CARD Act. We examine a unique data set of over 200,000 credit card mail solicitations to a representative sample of households and introduce credit card offers as a direct, informative measure of supply of such credit. Contrasting personal credit card offer dynamics before and after the passage of the CARD Act with those of personal loans, auto loans, and corporate credit cards, we find that lenders reduced credit supply of personal credit cards to nonprime borrowers in response to the CARD Act. Our analysis highlights the importance of separately examining supply and demand responses to assess the unintended consequences of regulation. Received January 30, 2016; editorial decision August 9, 2017 by Editor Philip Strahan.

Who Can Regulate Fraudulent Charitable Solicitation?

The scenario is common: a charity, typically with a name including an emotional word like “cancer,” “children,” “veterans,” “police,” or “firefighters,” signs a contract with a professional fundraiser to organize and run a campaign to solicit charitable contributions. The charity may be legitimate or a sham. The directors of the charity may be allied or coconspirators with the fundraiser, or as likely, well-meaning but naïve individuals. The fundraiser raises millions of dollars through telemarketing, Internet, or direct mail solicitation. The charity receives but a small percentage of the amount. In some cases, at the close of the campaign, the organization owes the solicitor more than the amount raised for the charity.1Thereafter, the state attorney general investigates the charity and finds fraud in the solicitation or an improper use of the funds raised. As part of the settlement, the professional solicitor agrees to be barred from operating in that particular state. Thereafter, the fundraiser moves to a neighboring jurisdiction, opens business (perhaps under a different name), and commences the same cycle of fraudulent fundraising using another charity.2 Deception in solicitation and misuse of monies raised for charitable purposes is not only a fraud on the donor; it also can be a diversion of tax dollars from state or federal treasuries.This article examines several approaches for regulating unscrupulous professional fundraisers and preventing carpetbagging, moving from jurisdiction to jurisdiction, committing fraud, or willfully violating regulatory requirements. It examines limitations in the existing regulatory framework to prevent charity fraud and offers possible solutions to the problem. As a first solution, the Internal Revenue Service should revitalize and extend the “private benefit doctrine” as a tool of enforcement. Second, Congress and the Service should amend § 4958 to address excess benefit transactions to more clearly include unscrupulous solicitors.A third possible resolution to the problem outlined would be the expansion of the Federal Trade Commission’s enforcement authority to cover charitable solicitation generally. Currently, the FTC has authority over telemarketing by for-profit fundraisers.3 The legislation proposed would enable the creation of a self-regulatory organization under Federal Trade Commission aegis that fundraisers would be required to join. This new organization would enforce norms and rules for professional fundraisers, have the authority to discipline and, if necessary, to bar dishonest fundraisers from the fundraising industry.A final recommendation is the creation of an online, readily accessible database containing records of violations of professional fundraising companies and the individuals who own and work for them, the contracts between professional solicitors and the charities they work for, the results of fundraising campaigns listing the percentage of dollars raised that goes to the charity, and the texts of settlement agreements between state charity officials and fundraisers and the charities involved. An important issue not addressed in detail is the fiduciary responsibility of charity boards to carefully select the firms that manage their solicitation campaigns.

How Do Suggested Donations Affect Charitable Gifts? Evidence from a Field Experiment in Public Broadcasting

Direct mail fundraisers commonly provide a set of suggested donation amounts to potential donors, in addition to the option of writing in an amount. Yet little systematic evidence exists about the causal effects of suggested donation amounts on giving behavior. To this end, we conducted a field experiment on a direct mail solicitation to nearly 15,000 members of three public broadcasting stations. We varied (1) the vector of suggested amounts, and (2) whether the suggested amounts were fixed or varied as a proportion of the individual’s previous donation. We find that increasing the vector of suggested amounts by about 20 percent statistically significantly reduces the overall probability of giving by about 15 percent. The overall impact on revenue is less clear, but appears to be somewhat negative. Higher suggested amounts also lead to write in amounts representing a greater proportion of donations. We attribute our result to the apparent cognitive cost of writing in a preferred amount that differs from a suggested amount. A second field experiment, in which we alter only one of the suggested amounts, gives evidence consistent with that theory and with the idea that donors prefer to give round numbers, as we see donors significantly more likely to give amounts of $90 or higher when suggested $100 versus $95.

Information, Contract Design, and Unsecured Credit Supply: Evidence from Credit Card Mailings

How do lenders of unsecured credit use screening and contract design to mitigate the risks of information asymmetry and limited commitment in the absence of collateral? To address this question, we take advantage of a unique dataset of over 200,000 credit card mail solicitations to a representative sample of households over the recent credit cycle – a period that includes the implementation of the CARD Act. We find that while lenders use credit scores as a prominent screening device, they also take into account a wide array of other information on borrowers' credit histories and financial and demographic characteristics. For instance, the likelihood of receiving an offer is sensitive to the exact timing of a prior bankruptcy filing. We also find that credit market conditions affect the marginal information used in lenders' offer decisions, as lenders sharply reduced credit supplied to subprime borrowers during the crisis and in response to the CARD Act. Finally, we document that lenders extend multiple distinct offers to the same consumers over a relatively short period, likely designed such that consumers reveal private information in their choice of contract.

The identifiable victim effect in charitable giving: evidence from a natural field experiment

We design a natural field experiment to enhance our understanding of the role of the identifiable victim effect in charitable giving. Using direct mail solicitations to 25 797 prior donors of a nonprofit charity, we tested the responsiveness of donors to make a contribution to either an identifiable or a statistical victim. Unlike much previous research, which has used only laboratory experiments, we find that the campaign letter focusing on one identifiable victim did not result in significantly larger donations than the campaign letter focusing on the statistical victim. In addition to the role of the identifiable victim, we investigate the degree to which each of our campaign letters affected donors’ payments to other concurrent and future campaigns and whether there is decreasing marginal returns to campaigning in the sense that receiving a letter crowds out donors’ payments to other future and concurrent campaigns. We find some evidence of crowding out, indicating that charitable giving could be a zero-sum game; however, the treatment letters did not have different effects on other payments.

Fundraising and the Elderly: A Content Analysis

Direct marketing, as an avenue for fundraising, provides nonprofit organizations with the ability to fulfill their missions and donors the opportunity to support a worthy cause. There are concerns, however, when sophisticated marketing practices target potentially at-risk consumers. Demographic studies clearly show that the percentage of elderly Americans, aged 65 and over, is rising with a corollary increase in the incidence of Alzheimer’s disease and dementia. These facts suggest this may be a group whose defining characteristics make them especially vulnerable. This exploratory study identifies and qualifies persuasive tactics used by several linked nonprofit organizations targeting one elderly Alzheimer’s victim over a 14-month period. The carefully designed direct mail solicitations utilize appeals that engender low elaboration likelihood and peripheral route processing. In addition, there is some evidence that even those appeals that might encourage high elaboration likelihood become heuristic cues for individuals with cognitive decrease. Taken together, the incorporation of multiple tactics within each solicitation, an approach referred to here as shotgunning, may have significant implications for future research and practice in communication, ethics, and public policy.

How Can Bill and Melinda Gates Increase Other People’s Donations to Fund Public Goods?

We develop a simple theory which formally describes how charities can resolve the information asymmetry problems faced by small donors by working with large donors to generate quality signals. To test the model, we conducted two large-scale natural field experiments. In the first experiment, a charity focusing on poverty reduction solicited donations from prior donors and either announced a matching grant from the Bill and Melinda Gates Foundation, or made no mention of a match. In the second field experiment, the same charity sent direct mail solicitations to individuals who had not previously donated to the charity, and tested whether naming the Bill and Melinda Gates Foundation as the matching donor was more effective than not identifying the name of the matching donor. The first experiment demonstrates that the matching grant condition generates more and larger donations relative to no match. The second experiment shows that providing a credible quality signal by identifying the matching donor generates even more and larger donations than not naming the matching donor. Importantly, the treatment effects persist long after the matching period, and the quality signal is quite heterogeneous — the Gates’ effect is much larger for prospective donors who had a record of giving to “poverty-oriented” charities. These two pieces of evidence support our model of quality signals as a key mechanism through which matching gifts inspire donors to give.

Small matches and charitable giving: Evidence from a natural field experiment

To further our understanding of the economics of charity, we conducted a natural field experiment. Making use of two direct mail solicitations sent to nearly 20,000 prior donors to a charity, we tested the effectiveness of $1:$1 and $1:$3 matching grants on charitable giving. We find only weak evidence that either of the matches work; in fact, for the full sample, the match only increased giving after the match deadline expired. Yet, the aggregation masks important heterogeneities: those donors who are actively supporting the organization tend to be positively influenced whereas lapsed givers are either not affected or adversely affected. Furthermore, some presentations of the match can do harm, e.g., when an example amount given is high ($75) and the match ratio is below $1:$1. Overall, the results help clarify what might cause people to give and provide further evidence that larger match ratios are not necessarily superior to smaller match ratios.

Observing Unobservables: Identifying Information Asymmetries With a Consumer Credit Field Experiment

Information asymmetries are important in theory but difficult to identify in practice. We estimate the presence and importance of hidden information and hidden action problems in a consumer credit market using a new field experiment methodology. We randomized 58,000 direct mail offers to former clients of a major South African lender along three dimensions: (i) an initial “offer interest rate” featured on a direct mail solicitation; (ii) a “contract interest rate” that was revealed only after a borrower agreed to the initial offer rate; and (ii) a dynamic repayment incentive that was also a surprise and extended preferential pricing on future loans to borrowers who remained in good standing. These three randomizations, combined with complete knowledge of the lender's information set, permit identification of specific types of private information problems. Our setup distinguishes hidden information effects from selection on the offer rate (via unobservable risk and anticipated effort), from hidden action effects (via moral hazard in effort) induced by actual contract terms. We find strong evidence of moral hazard and weaker evidence of hidden information problems. A rough estimate suggests that perhaps 13% to 21% of default is due to moral hazard. Asymmetric information thus may help explain the prevalence of credit constraints even in a market that specializes in financing high-risk borrowers.

Does it Pay to Read Your Junk Mail? Evidence of the Effect of Advertising on Home Equity Credit Choices

We examine the effect of direct mail (commonly referred to as junk mail) advertising on individual financial decisions by studying consumer choice of home equity debt contracts. Consistent with the theoretical predictions, we find that financial variables underlying the relative pricing of debt contracts are the leading factors explaining consumers home equity debt choice. Furthermore, we also find that the intended use of debt proceeds significantly impacts consumer choice. However, when we study a subset of consumers who received a direct mail solicitation for a particular debt contract (fixed versus adjustable-rate), we find evidence that the relative pricing variables are less relevent in explaining consumer contract choice, even though they were presented with a full menu of debt contracts. Thus, our results are consistent with the persuasive view of advertising.

Web Surveys versus other Survey Modes: A Meta-Analysis Comparing Response Rates

One question that arises when discussing the usefulness of web-based surveys is whether they gain the same response rates compared to other modes of collecting survey data. A common perception exists that, in general, web survey response rates are considerably lower. However, such unsystematic anecdotal evidence could be misleading and does not provide any useful quantitative estimate. Metaanalytic procedures synthesising controlled experimental mode comparisons could give accurate answers but, to the best of the authors' knowledge, such research syntheses have so far not been conducted. To overcome this gap, the authors have conducted a meta-analysis of 45 published and unpublished experimental comparisons between web and other survey modes. On average, web surveys yield an 11% lower response rate compared to other modes (the 95% confidence interval is confined by 15% and 6% to the disadvantage of the web mode). This response rate difference to the disadvantage of the web mode is systematically influenced by the sample recruitment base (a smaller difference for panel members as compared to one-time respondents), the solicitation mode chosen for web surveys (a greater difference for postal mail solicitation compared to email) and the number of contacts (the more contacts, the larger the difference in response rates between modes). No significant influence on response rate differences can be revealed for the type of mode web surveys are compared to, the type of target population, the type of sponsorship, whether or not incentives were offered, and the year the studies were conducted. Practical implications are discussed.

Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment

We conducted a natural field experiment to further our understanding of the economics of charity. Using direct mail solicitations to over 50,000 prior donors of a nonprofit organization, we tested the effectiveness of a matching grant on charitable giving. We find that the match offer increases both the revenue per solicitation and the response rate. Larger match ratios (i.e., $3:$1 and $2:$1) relative to a smaller match ratio ($1:$1) had no additional impact, however. The results provide avenues for future empirical and theoretical work on charitable giving, cost-benefit analysis, and the private provision of public goods. (JEL D64, L31)

Young, Selfish and Male: Field Evidence of Social Preferences

This study examines social preferences in three distinct field environments. In the first field setting, I allow consumers of all age and education levels to participate in one-shot and multiple-shot public goods games in a well-functioning marketplace. The second field study, an actual university capital campaign, gathers data from mail solicitations sent to 2,000 Central Florida residents. In the third field experiment, I examine data from an uncontrolled environment, a television gameshow, which closely resembles the classic prisoner's dilemma game. Several insights emerge; perhaps the most provocative is that age and social preferences appear linked.

Using Advertising Constructs and Methods to Understand Direct Mail Fundraising Appeals

AbstractThis study examined whether we could use a Solicitation Response Model adapted from the consumer research literature to increase our understanding of nonprofit direct mail solicitations. We sent 389 surveys to people listed in the database of a homeless shelter. In response, 166 people rated an envelope and appeal from the shelter. The model successfully explained potential donors' intention to open the envelope and intention to donate. Emotional responses to the envelope and attitude toward the envelope were more important influences upon acquisition (or new) donors' intention to open the envelope than upon renewal donors' intention. Attitude toward the appeal had a stronger effect upon acquisition donors' intention to donate than it did upon renewal donors' intention. The study suggests differences in the way that appeals should be designed for acquisition and renewal donors. As well, we present a small sample method for diagnosing direct mail charitable solicitations.