It is common for charitable organizations to allow donors to place material restrictions on their gifts. Nonprofits and fundraisers generally believe that allowing gift restrictions will increase donation revenue. Restricted gifts are costly to the nonprofit because of increased management...

Gift restrictions are a common tool used by donors to ensure charitable intent. Due to increased monitoring costs and the loss of flexibility, gift restrictions are costly to the recipient nonprofit. Using an economic experiment, we study the impact of offering donors the option to restrict...