Periodic Versus Aggregate Donations: Leveraging Donation Frequencies to Cultivate the Regular Donor Portfolio

Abstract

Charitable organizations play a key role in society but face the recurrent challenge of obtaining sufficient resources to accomplish their missions. The regular donor portfolio becomes a critical element in providing stable and long-lasting funding, and its effective management has emerged as a key research area. This study investigates the impact of the donation frequency by regular donors on their donation amount over time. Drawing from temporal reframing literature, we provide an understanding of these effects as well as the moderating role of the motivations to donate (self- vs other-oriented). The study also investigates the extent to which frequency choices are influenced by the motivations to donate and by the donation options presented during registration. Using a sample of regular donors from 2013 to 2019 and applying dynamic panel data techniques, the findings reveal that higher frequencies lead to higher donations, though this effect is strengthened by self-oriented motivations and weakened by other-oriented motivations. Our study shows that motivations to donate and donation options jointly explain donation frequencies. This study provides useful guidance for charities on how to increase regular donors’ perceived value and their contributions to help these organizations provide essential services to the most vulnerable groups in society.

Graphical Abstract