Question

ForAClim is a charity organization using donations made online to boost forest conservation and restoration worldwide. Since, forest play a key role in mitigating climate change the organization has put together an expert team to come up with ideas that would boost donations.

The team suggest that there should be a pre-determined amount to donate framed as the minimum amount needed to have an impact on forest conservation and then individuals will be able to only increase this amount or not donate at all. Discuss why or why not this might be a good strategy to increase donations based on the following behavioral economic concepts: framing, anchoring effect, and default option.

Answer 1

There is an ample number of organizations are working for the progress of a pollution-free environment. To run their social project, they need sufficient funds to operate the positive efforts of forest conservation. The administrators of the organization should have in-depth knowledge of contributors' donation levels accordingly with their ability to part the money for a good social cause. They also need it for analyzing the Donar's monetary strength of contribution is very crucial to attract bulk donations step by step into the pool of funding the project. According to the behavioral economic concept of framing, anchoring effect, and other default option, it is not an excellent strategy to support lending donations through an online mode of a systematic mapping of framing the guidelines to get funds as a donation and using it for good impact on forest conservation. Let us interrelate the negative causes of the above economic concepts.

Behavior economics deals with the above concepts help to study the emotions of the funding people. Framing concept deals with presenting the need for forest conservation. The way they capture the attention and interest of the volunteers by showing them the disadvantages of Global Warming. But the over-confidence and the forced expectation of the fund movers will cause the non-interest of their willingness to pay for the noble cause.

Other efforts of producing documentary reports and anchoring effect will lead to failure of efforts. The anchoring effect is nothing but studying the psychological aspects of the volunteers. Their sentimental attachment towards forest conservation. When the middle-income groups willing to contribute, then they need to face the financial loss when they intended to spend half of the amount as donation after nullifying the other house expenses. From the above-pinpointed facts we can prove it that this is not the right strarategy of attracting funds from the volunteers.