Nonprofits and charitable organizations often seek to generate excitement around highly visible initiatives when fundraising, such as crowdfunding efforts, matching campaigns, and building projects. According to Chicago Booth’s Canice Prendergast, this taps into people’s desire to make a significant, tangible impact. Potential donors are more likely to give when they believe their contribution is crucial or when they feel part of something important. This tendency can lead nonprofits to focus on projects that are less critical but more attractive to donors, even if it means diverting resources from core needs or higher-value initiatives. To learn more, read “Why Charities Can Have Strange Spending Habits.”
Illustration by Peter Arkle
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