Defaults in charitable donations impact amounts and rates, changing fundraising strategies.
Setting a default donation amount in a charity appeal can influence people's decisions. Low default amounts lead to lower average donations, but increase the donation rate. Defaults can also distract from other cues, like positive charity information. Contrary to expectations, defaults actually raised revenue in a real-world study. However, default amounts can sometimes cancel each other out, resulting in no overall impact on revenue. This research has implications for fundraising strategies, behavioral interventions, and policy decisions using nudges.