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From ATM american public media and w and my c This is Breakin onyx radio on marketplace, fears the host of marketplace. Tyrants, Don T know if a little but a few Economic radio, that moment in the broadcast, every couple of weeks where we talked to Stephen under the co author of the books in the blood of the same name, it's the hidden side of everything this week in the Spirit of the season Debonnair we the tale of charitable, giving as only free economics can do today. We begin in Australia with a story of Dick Smith said this Christmas, their dicks. this made. A lot of money with this chain of electronic stores Now he says he gives twenty percent of his income to charity. He says Australians dont give nearly enough, so he started a campaign to convince them to give more now I've written a route that I know him. That's

Murdoch he's talking about, but he made out to me that he does get some money arrive at has done confidentially to his staff with enough staff. They say no get. There is not a generous balinese body. Psmith continued with the gentle approach, hoping a bit of quiet persuasion would make Australians open their wallets. Like the rich Americans, you here so often, but I have not succeeded. I've completely filed said now: I'm going publicly an outing these people, and at least embarrassing them, hoping that one will break ranks and fulfil obligations, are putting something back into society, as you can imagine, shame game, didn't sit so well with everyone. There have been articles the article that I'm your friend to was you stick Smith. Just add writer, Matthew BT thinks this is a bad idea.

I think he's during the pot a bit. It's too soon to say how well Smith's shaming routine will work, but it made me wonder: It comes to charitable giving what does work. I asked someone I'm John lest in I'm a professor at the University of Chicago and I focused on the economics of Charity- aren't so Let's say you're, trying to raise money for no up public radio station. Please help us can you to bring you the news and information from around the world that you value contribute to day and thanks John was discovered that again, Way to start raising money is by telling people

from your own money in the pot already, you know, seed money. So what we found is that the more seed money that you had not only induced more people to give, but those people actually gave more money- are so seed money works. What about the old matching gift trick? What the experts will tell you is that the larger the match is the more effective. The more die he will raise and that's just flat out false. What list found? Is it a one to one match? Does work well but increasing the match to two hundred and twenty one or three hundred and twenty one doesn't do any additional good, but here's something that is worthwhile, Apples if you are serious about raising money, offer people a prize in just by doing that. You end up increasing gifts by as much as a hundred per cent and here's my favorite, it's called the once and done it lets. You opt out

it's giving the control of the relationship to the solicitor ye. Here's how it works. Since charities. No, it's annoying the constantly get solicitations in the mail. They give you a choice. If you send in some money today and then check box, opting out we'll, never bother you again, given the once and done. Opposition they not only give more money in that particular fundraising drive, but they do not check the box and in future months they end up giving more money. then people who never received the once and done proposition John List seems to know all the charity tricks that work. I asked him about Dick Smith, the australian Electra ex mobile and his shaming idea. You think that is a good strategy.

Fundraising or is Thick Smith, just as one australian Comest put it just at TED. I think this strategy is probably in the short run. But I wonder in the long run, if those millionaires or billionaires might flee the continent. Seek refuge elsewhere. Then you have, you have a short run. game, but alone run loss. I'm Stephen! W for Marketplace- Really. Radio is the website donors back in a couple of weeks,

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