Small is beautiful—Experimental evidence of donors’ preferences for charities

Borgloh, Sarah; Dannenberg, Astrid; Aretz, Bodo

doi:10.1016/j.econlet.2013.04.011

Cited by 15 publications

(16 citation statements)

References 32 publications

(29 reference statements)

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“…Third, we analyze whether donors value information about aid impact more or less than other donation-relevant information, in particular information about the recipient type or administrative costs. Previous studies have shown that (cost-free) information about administration costs and recipient type have a significant influence on private donation decisions (Gregory and Howard 2009, Borgloh et al 2013, Bachke et al 2014, Caviola et al 2014). Based on survey data 5 , Gregory and Howard (2009) find that donors have downward skewed beliefs about how much overhead spending is necessary to guarantee an organization's proper functioning.…”

Section: Aid Effectiveness and Private Charitable Givingmentioning

confidence: 99%

“…In a laboratory experiment conducted by Caviola et al (2014) participants started donating more to less cost-effective charities, when the administration costs of more cost-effective charities started to increase. Last, in a lab-in-field experiment conducted in Mannheim, Germany, Borgloh et al (2013) found that participants donated more to financially smaller NGOs, because they believed these NGOs had smaller administration costs, and hence provided more money directly to the charitable cause.…”

Section: Aid Effectiveness and Private Charitable Givingmentioning

confidence: 99%

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Making an impact? The relevance of information on aid effectiveness for charitable giving. A laboratory experiment

Metzger

Günther

2019

Journal of Development Economics

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A considerable and increasing share of foreign aid stems from private donations. Hence, individual donors can increase social welfare in developing countries by directing their funds to the most effective NGOs. Surprisingly few studies have analyzed whether private donors care about aid effectiveness when they donate to an international charity. In a laboratory experiment, we investigate if private donors seek information about the exact impact of their donation to an international NGO before they donate. Furthermore, we investigate how relevant private donors find information about aid impact compared to information about administrative costs, and the recipient type who benefits from a donation. First, we find that a relatively small share of individuals makes a well-informed donation decision. Second, the demand for information about aid impact is lowest, and it is highest for information about the recipient type. Third, exact information about aid impact did not lead to a significant change in average donation levels, while information about the exact recipient type and administrative costs led to a significant change in donation levels. In the recipient type group, informed participants donated significantly more than uninformed participants because they "rewarded" the preferred recipient with higher-thanaverage transfers. In the administration costs group, informed participants donated significantly less than uninformed participants because they used the information to "punish" NGOs with high administration costs.JEL Code: D64,L31,O12

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Section: Aid Effectiveness and Private Charitable Givingmentioning

confidence: 99%

Section: Aid Effectiveness and Private Charitable Givingmentioning

confidence: 99%

Making an impact? The relevance of information on aid effectiveness for charitable giving. A laboratory experiment

Metzger

Günther

2019

Journal of Development Economics

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“…A Spearman's rank correlation coefficient is positive and highly significant (ρ = 0.485, p = 0.002), supporting the notion that more risktolerant women give more. 4 In strong contrast, men show no significant correlation between risk preferences and donations (Spearman's rank correlation coefficient: 2015). Motivated by theories of reciprocity they focus on more than 1,000 primary school kids to analyze how risk and intertemporal choices influence altruism.…”

Section: Resultsmentioning

confidence: 99%

“…One aspect refers to donors' perception that contributions can make a difference to the cause supported by them (Duncan, 2004). This is emphasized by Borgloh et al (2013) who find that subjects donate more frequently to small charities where perceived efficacy is high. Another issue is the utilization of the donated money.…”

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confidence: 97%

Risk-Tolerant Women Donate More than Men: Experimental Evidence of Dictator Games

Müller

Rau

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may University of GöttingenOctober 2015 AbstractIn a within-subjects experiment we test the relation of risk preferences and charitable giving. Women not only give substantially more than men, but alsoshow an economically significant positive correlation between risk tolerance and donation levels. We find no such correlation for men. Men and relative risk-averse women do not differ in donations. Thus, common findings of gender differences in charitable giving may be explained by risk-tolerant women donating more.JEL Classification numbers: C91, D64, D81, J16.

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“…Among the most popular reasons cited were simply being aware of a need, being asked to donate, receiving benefits from the donation, believing in altruism, enhancing one's public reputation, and fulfilling one's personal values. Borgloh, Dannenberg, and Aretz (2013) found that when presented with the size of an organization's coffers, donors prefer to give to an organization with smaller annual revenues before giving to a nonprofit with higher annual revenues. And in 2009, Harris Interactive found that Americans define "true philanthropy" as the giving of both time and money (Preston, 2009).…”

Section: Running Giving and Identitymentioning

confidence: 99%

Outrunning cancer

Erickson¹

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Kristin, my best friend and sister, has borne the brunt of my worry and insecurity and shared my excitement and joy. Kris and Mark have been a part of this project from the start, and Miles' love of playing, reading, cuddling, and being a goofball helped "Aunt Lizzie" be silly when it was really needed (I really hope that feminist theory I read to you when you were an infant sticks with you). Thanks, Mom, Dad, Kris, Mark, Miles, Maggie, and Gus. I'm so lucky you're my family. I love you all. You're the best. My friends from Wartburg, UMass, and Junior League of Cedar Rapids have kept me "normal" over the last seven years. Graham, Jen, and the animals have been constants, offering food, support, encouragement, and trips to Wisconsin. Steph is a supremely talented editor (thank you!). Suzanne listened to her share of freak-outs, always saying the right thing. My Wartburg friends, especially the Comm Arts boys, tried hard to help me remember to eat every day. Maria picked up my VP of Communications slack in League, made me laugh and think, and paid for many more bottles of wine than she should have. I could never individually thank each of my friends across the country who helped, so please know everything you did was appreciated. Thank you so much, my friends. I'm proud to know you, and I owe you many cupcakes. My grandparents never went to college, but made it a priority for their kids and for my sister and me. When I graduated from Wartburg in 1997, I thought I'd spend my career working in athletic communications; never in a million years did I dream I would earn a Ph.D. A lifetime of teachers, professors, co-workers, and bosses-Grant, Liz,

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Small is beautiful—Experimental evidence of donors’ preferences for charities

Cited by 15 publications

References 32 publications

Making an impact? The relevance of information on aid effectiveness for charitable giving. A laboratory experiment

Making an impact? The relevance of information on aid effectiveness for charitable giving. A laboratory experiment

Risk-Tolerant Women Donate More than Men: Experimental Evidence of Dictator Games

Outrunning cancer

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