In fundraising, it is common for the donor to see how much a charity has received so far.What is the impact of this information on a) how much people choose to donate and b) which charity they choose to donate to? Conditional cooperation suggests that people will donate to the charity that has received the most prior support, while the Underdog Effect suggests increased donations to the charity with the least support. Across 2 laboratory experiments, an online study (combined N = 494) and a qualitative survey (N = 60), a consistent preference to donate to the charity with the least prior support was observed. Thus, the Underdog Effect was supported. We suggest people will show a preference for the underdog if there are two or more charities to donate to, one of the charities is at a disadvantage and people have little preexisting loyalty to either charity.
Keywords: Social Information, Charitable Donations, Underdog Effect, Impact Philanthropy
UNDERDOG EFFECTS ON CHARITABLE DONATIONS 2It is becoming increasingly common for charities to allow potential donors to be able to observe others' prior donations (Butt & Shah, 2012). It is believed that the visibility of previous donations provides social information that potential donors can use to help inform their own donation decisions. A number of studies examining this type of social information have shown that people have a preference to give to a charity/organization with a larger number of previous donations (Frey & Meier, 2004;Martin & Randal, 2008). However, many of these studies prevented direct comparison of information across charities by using between subjects designs, whereby participants were presented with information about either one charity or another (Frey & Meier, 2004;Martin & Randal, 2008). A more realistic scenario is that potential donors are able to compare information on previous donations across charities simultaneously. This is akin to online fundraising where donation information for a variety of charities can be compared. Therefore, we investigate whether, under this donation scenario, donors would show a preference to donate to either the most supported or the least supported charity. If participants do prefer the least supported charity, we ask: is this because they are motivated by the desire to make their donation have a bigger impact on the charity (the impact donor) or are they motivated by a preference to support those at a disadvantage (the underdog donor)? Theoretically, this paper explores the potential role of an underdog effect in charitable decisions. First, we review the theories that support the preference to give to a charity with greater prior support. We then review the theories supporting the preference to contribute to a charity with the least prior support. Finally, we explore how these preferences may be moderated by the observability of prior donations before outlining the current research.
Preferences for giving to a charity with greater prior supportConditional cooperation suggests that there should be a pos...