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Optimal Targeting in Fundraising: A Causal Machine-Learning Approach

Tobias Cagala, Ulrich Glogowsky, Johannes Rincke, Anthony Strittmatter

arXiv 10 Mar 2021 · Econometrics · 9 citations (OpenAlex)

arXiv:2103.10251 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Ineffective fundraising lowers the resources charities can use to provide goods. We combine a field experiment and a causal machine-learning approach to increase a charity's fundraising effectiveness. The approach optimally targets a fundraising instrument to individuals whose expected donations exceed solicitation costs. Our results demonstrate that machine-learning-based optimal targeting allows the charity to substantially increase donations net of fundraising costs relative to uniform benchmarks in which either everybody or no one receives the gift. To that end, it (a) should direct its fundraising efforts to a subset of past donors and (b) never address individuals who were previously asked but never donated. Further, we show that the benefits of machine-learning-based optimal targeting even materialize when the charity only exploits publicly available geospatial information or applies the estimated optimal targeting rule to later fundraising campaigns conducted in similar samples. We conclude that charities not engaging in optimal targeting waste significant resources.

Citation extraction

78
references
130
in-text mentions
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distinct cited
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1–- and Wager, S (2021) Policy Learning with Observational Data1.00084100%
2Rosenbaum, P. and Rubin, D (1983) The Central Role of Propensity Score in Observational Studies for Causal Effects1.00073100%
3Falk, A (2007) Gift Exchange in the Field1.00055100%
4–- and –- (2013) Charitable Giving1.00054100%
5Zhou, Z., Athey, S. and Wager, S (2018) Offline Multi-action Policy Learning: Generalization and Optimization1.00054100%
6Alpizar, F., Carlsson, F. and Johansson-Stenman, O (2008) Anonymity, Reciprocity, and Conformity: Evidence from Voluntary Contributions to a National Park in Costa Rica0.84333100%
7Athey, S. and Imbens, G. W (2019) Machine Learning Methods that Economists Should Know About0.84333100%
8Yin, B., Li, Y. and Singh, S (2020) Coins Are Cold and Cards Are Caring: The Effect of Pregiving Incentives on Charity Perceptions, Relationship Norms, and Donation…0.84333100%
9–-, Fernández-val, I. and Luo, Y (2018) b)0.81142100%
10–-, Demirer, M., Duflo, E. and Fernández-val, I (2020) Generic Machine Learning Inference on Heterogenous Treatment Effects in Randomized Experiments0.64422100%

Showing the top 10 of 78 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1What Is the Value Added by Using Causal Machine Learning Methods in a Welfare Experiment Evaluation?0.40511