Pledge Donation, Altruistic Capital, and Memory

Title: Pledge Donation, Altruistic Capital, and Memory

Abstract: Charitable giving is a critical source of funding for development initiatives. While sustained and predictable pledge donations play an essential role, most research has concentrated on one-time contributions, leaving a significant gap in understanding how to cultivate long-term donor engagement and retention. This paper addresses that gap by analyzing a unique panel dataset comprising millions of donation decisions from pledge donors to one of the world’s largest charities. By integrating data on donation behavior with records of fundraising activities and donor communications, we provide new insights into effective donor relationship management strategies. Employing a generalized difference-in-differences approach, we investigate both the immediate and longer-term impacts of communication on pledge behavior, as well as the underlying mechanisms at play.