Publicity vs. Impact - A Sequential Game with a Non-profit Organization and N Donors
Charitable contributions play an important role in serving the society, maintaining civil health and even improving the worldwide relationship of nations. However, the market of charitable contributions is greatly complicated by the lack of organizational transparency and by the information asymmetries that often exist between organizations and donors. The voluntary disclosure of organizational financial, performance, donor-relations, and fundraising-related data is thus an important tool for non-profit organizations attempting to attract greater contributions while boosting accountability and public trust. However the organizations' payoffs associated with such disclosure heavily relies on the nature of donor preferences and the relative openness and effectiveness of competing organizations. To help understand the interplay between non-profit organizational disclosures and individual donations, we present a novel game-theoretic model of disclosure--donation interactions that incorporates the donor preferences with organizational effectiveness and "value-relevant" disclosure.