Charitable Giving and Fundraising: When Beneficiaries Bother Benefactors

Many instances partly or even totally depend on philanthropic gifts. Yet, such private donations usually do not occur if not distinctly solicited. An in-termediate process becomes necessary, with the objective to address potential benefactors. So, most of these entities exert some sort of fundraising. Our ap-proach is to model the potential conflict between benefactor and beneficiary with respect to the extent of fundraising activities, where the beneficiary is assumed to prefer a strictly higher level of fundraising than the benefactor would deliberately choose. The outcome of the common fundraising process proves inefficient. A Pareto-optimal allocation can either be achieved by a tax privilege of donations or by commitment of the benefactor to what we call strategic bounteousness