Charitable Giving Research Articles

Measuring Charitable Giving: How to Capture Charitable Behavior in Philanthropy Research

Charitable giving is a socially desirable behavior, and therefore prone to misreporting. In this article, we survey two decades of published research to understand the extent to which objective measures, capturing observed behavior, are used in philanthropy research. A systematic review of 437 articles found that 73% included at least one subjective (i.e., self-reported) measure and only 33% included at least one objective (i.e., observed behavior) measure. Objective measurement was more common in economics journals, research conducted in Western Europe, and studies using archival or experimental methods; and especially uncommon in nonprofit studies journals and survey research. We also generate an inventory of the diverse ways that charitable giving has been measured, both subjectively and objectively, as a resource for philanthropy scholars. Finally, we close with recommendations for future research detailing when and how we can include more objective measurement of charitable giving.

The Influence of Charitable Attitudes and Religiosity on the Happiness of Middle Adult Muslims in Jabodetabek

Happiness is a positive emotional condition that is important in life, especially for middle-aged adults who face various life pressures. This study aimed to examine the effect of generous attitudes and religiosity on the happiness of middle-aged Muslims in the Jabodetabek area. This study used a quantitative approach with volunteer sampling techniques on 200 Muslim respondents aged 40–60 years. The measuring instruments used included the Oxford Happiness Questionnaire, Attitudes Toward Charitable Giving, and the IIUM Religiosity Scale. Data analysis was performed using multiple linear regression. There was a significant influence of all independent variables on happiness (R² = 33.2%, p < 0.05). However, specifically, only the dimensions of faith (p = 0.030) and ihsan (p = 0.002) of religiosity had a significant effect on happiness. Generous attitudes, age, gender, and the Islamic dimension did not show a significant effect. These results indicated that the spiritual aspect of religiosity plays a greater role in shaping happiness than generous attitudes, especially in the middle-aged adult phase. Faith and ihsan are the main predictors of happiness of middle-aged Muslim adults in Jabodetabek. Further studies are recommended to explore other variables such as marital status and social welfare.

Information Costs and the Impact of Charitable Giving

Donors may be unwilling to acquire information about nonprofit performance because information is costly, potentially resulting in inefficient giving. Using an experiment, we evaluate the hypothesis that donors can be induced to give more efficiently when information costs are borne by another donor, holding total spending constant. We propose that information about nonprofit performance is a social good with significant positive externalities that donors may not equally value. In consequence, donors on average may tend to acquire too little information relative to the social optimum. We find that average donation impact can be increased by about 13% by shifting the information cost burden. We conclude with recommendations for policymakers, public agencies, information intermediaries, donor-advised funds, nonprofit practitioners, and researchers.

Gender Wage Gap, Bargaining Power, and Charitable Giving of Households

Gender Wage Gap, Bargaining Power, and Charitable Giving of Households

Individual Determinants of Hypothetical Bias in Charitable Giving

ABSTRACTWhat people answer in surveys is not necessarily what they would do in reality. In a survey experiment administered to 1650 respondents in the United States, I show participants the profile of a fictional charity operating refugee camps. Participants tend to be more generous toward the charity when asked to make a hypothetical future donation than with an immediate real donation. This phenomenon is known as hypothetical bias. We know very little about the individual‐level characteristics associated with hypothetical bias. In this article, I focus specifically on survey respondents who claim they would donate hypothetically but then decline to do so in reality. Since very few studies compare answers to hypothetical and real‐life charitable donation requests, I draw on research comparing self‐reports to actual actions in the context of normative behaviors such as voting and giving. The same motivations that may lead someone to overreport their generosity or to claim that they voted when they did not can help us explain hypothetical bias. Based on this literature, I hypothesize that more religious individuals, more highly educated individuals, and individuals of color are more likely to display hypothetical bias. As predicted, I find that religiosity, education, and race are all associated with hypothetical bias. Beyond contributing to the theoretical understanding of hypothetical bias, this research can help nonprofit fundraisers allocate resources more effectively.

Do Parents’ Political Connections Matter for Children's Charitable Giving?

ABSTRACTObjectiveNonprofit research on the influence of politics is emerging, while few scholars investigate such issues from intergenerational perspective. Following the cultural transmission model, our study examines whether and how parents’ political connections affect children's giving.MethodEmploying data from the 2014 and 2018 China Labor‐force Dynamics Survey, we estimate a truncated normal hurdle model to reveal the impact of political connections on giving from intergenerational perspective.ResultsThe findings indicate that individuals whose parents are politically connected are more likely to give and donate higher amounts to charity than others. Drawing inspiration from vertical socialization, the results uncover that intergenerational transmission of political connections, the model effect of parents’ giving, and cultivating children's ability to donate are reasons for the positive association between parents’ political connections and children's charitable giving. Further analysis finds that oblique socialization measured by the neighborhood pressure and peer effect has a positive moderating effect on paths of vertical socialization.ConclusionThe influence of politics on charitable donations has intergenerational transmission, which needs attention in the development of charity.

Effectiveness is Not Enough: The Total Effect of the Tax Policy Toward Charitable Giving – Boundaries, Take-Up, and Effectiveness

Abstract Tax benefits for charitable giving are widespread. Governments waive tax revenues, aiming to encourage donors to increase their giving to nonprofits. Accordingly, the effectiveness of tax benefits has been widely researched, asking whether the policy increases donors’ giving. However, policy exhaustion is overlooked; therefore, we know very little about the total effect of such policies. In this paper, I suggest we go beyond effectiveness to focus on policy exhaustion as well. That is, exploring the effect of the policy boundaries on the benefit ineligibility range and the patterns of benefit non-take-up by donors. I further suggest that the appropriate approach to assessing the take-up rate of the tax benefit for charitable giving is not calculating the percentage of taxpayers who claim a tax benefit (as sometimes done). Although donors can claim the tax benefit, the “true” target population of the policy is nonprofits’ beneficiaries. Thus, the policy seeks not to improve donors’ conditions but to induce them to donate more to nonprofits as the providers of services. Therefore, estimating the share of donations for which the benefit is claimed is preferable to estimating the take-up of the tax benefit for charitable giving. Based on administrative data and complementary surveys, studying Israel in 2018 as a test case, I find that 23 % of total donations are ineligible for the benefit due to its boundaries (ceilings, floor, and qualified nonprofits); that 41 % of total donations are eligible for a benefit yet a benefit is not claimed for them (non-take-up); And thus, donors claim a tax benefit for 36 % of their total donations. In this case, then, effectiveness is relevant to 36 % of total donations only, and it seems that the most acute weakness of the policy is its low take-up rate. Two main consequences of the poor take-up rate are discussed. First is the scope of donations to nonprofits: if all eligible donations are claimed for a benefit and if all money received via the credit is donated to nonprofits (resulting in neutral effectiveness), donors in Israel could increase their donations to nonprofits by 13 % without spending an additional private cent. Second, since almost 70 % of unclaimed tax benefits apply to individual donations below NIS 20,000 (about €5,000), this pattern significantly undermines the pluralistic agenda implicit in the tax policy, leaving the privilege of allocating public resources to fewer donors. These outcomes are problematic, especially in times of complex crises, such as the COVID-19 health and financial crisis, during which demand for nonprofit services grew while private resources were scarcer, or the current (since 2023) societal-political crisis in Israel in which the liberal democracy is threatened and thus the pluralistic allocation of public resources to civil society via donations’ tax benefit is a powerful tool to exercise pluralism. The comprehensive approach proposed in this paper yields a detailed picture that reflects the actual realization of the tax policy and allows for an informed public dissection.

IDonate Application: Revolutionizing Charitable Giving through Technology

The increasing need for charitable contributions in society has led to the development of various platforms aimed at facilitating donations. However, many existing applications need more user-friendly interfaces and efficient donation processes, which can deter potential donors. This project addresses these issues by developing the iDonate app, a mobile application designed to streamline the donation process and enhance user engagement. The primary purpose of this research is to create an intuitive platform that not only simplifies the act of donating but also encourages users to contribute regularly. The Agile software development methodology was employed to achieve this, allowing for iterative development and continuous user feedback throughout the project lifecycle. The methodology facilitated the identification of user requirements and the incorporation of necessary features, ensuring that the final product aligned with user expectations. Key phases included requirement gathering, interface design, and system modelling, which were crucial in shaping the app's functionality. The project's principal results indicate that the iDonate app significantly improves user satisfaction by providing a seamless donation experience. User acceptance testing revealed a high level of approval regarding the app's design and usability, with participants noting its straightforward navigation and appealing interface. In conclusion, the iDonate app successfully addresses the challenges existing donation platforms face, offering a solution that promotes charitable giving through enhanced accessibility and user engagement.

Social Identification and Charitable Giving: A Systematic Review and Meta-Analysis

To enhance their effectiveness, nonprofit fundraisers may wish to harness the power of identification. Informed by Social Identity Theory and Charitable Triad Theory, we meta-analyzed 40 years of research on social identification and charitable giving to quantify the overall relationship and conducted meta-regressions to investigate moderators. Across 109 effect sizes drawn from 89,570 participants, we found a medium-sized relationship ( r = .29). Identification with other donors ( r = .23), beneficiaries ( r = .24), and fundraisers ( r = .36) were all positively associated with giving. Strength of identification ( r = .32) was more strongly associated with giving than was shared identity (i.e., in-group vs out-group target; r = .15). Effects were smaller for actual behavior ( r = .20) than for self-reported giving ( r = .33) and were only found when giving was mediated through charities ( r = .34) but not when giving directly to individuals ( r = .04). We include practical recommendations for ways that fundraisers can effectively leverage the power of identification in recruitment campaigns, copywriting, and selection of spokespeople.

The Role of Social Signaling and Ethnic Norms in Charitable Giving: A Field Experiment in Vietnam

ABSTRACTIn this field experiment involving ethnic and income groups in Vietnam, we explore the role of social signaling—a construct encompassing both status‐seeking and public recognition—in charitable giving. We find that individuals from the Hoa (Chinese) ethnicity and those in higher income brackets are more prone to engage in social signaling by donating more. Conversely, the Khmer, influenced by their ethnic norms, are less likely to use donations as a form of social signaling. Our findings align with a multifaceted theoretical model that integrates social signaling and ethnic norms to explain the complexities of charitable giving behavior. This study not only enriches our understanding of why people donate but also underscores the nuanced interplay of social signaling and cultural norms.

Wealth Taxation and Charitable Giving

Abstract We use third-party reported data and two quasi-experiments from Norway to study how tax incentives affect charitable giving. First, using a shock to wealth tax exposure, we estimate the semi-elasticity of giving with respect to the after-tax return on wealth. Inconsistent with the notion that households accelerate giving to reduce future taxes, we find that a 1% wealth tax reduces giving by 26%. Second, using bunching at an income-tax deduction threshold, we estimate a moderate own-price elasticity of giving of -0.44. This elasticity exhibits little heterogeneity with respect to income and wealth but is considerably larger for religious giving.

Moral Disengagement and Charitable Giving: Experimental Evidence From South Africa

ABSTRACTMoral disengagement has been linked to harmful behaviour and reduced inclination to assist others. Charitable giving, a form of assistance to others, is an important form of domestic resource mobilization in middle‐income countries. Moral disengagement can impact decisions regarding charitable giving by enabling individuals to rationalize less generous behaviour. We conducted a survey to investigate how moral disengagement varies across demographic groups and whether moral disengagement helps explain charitable giving. Because studies have shown that interventions can reduce moral disengagement, research highlighting groups demonstrating more moral disengagement can help to target such interventions. Understanding factors associated with moral disengagement can also show whether such interventions might be worthy of investment. We find higher moral disengagement for men and younger and less educated and unemployed respondents. Moral disengagement was a significant predictor of self‐reported less frequent charitable giving but not of the amount donated in an incentivised giving task.

Mutual Fund Governance of Corporate Political Spending: Evidence from Politically Motivated Charitable Giving

Mutual Fund Governance of Corporate Political Spending: Evidence from Politically Motivated Charitable Giving

Jackpot for Good: Can Lottery Matches Increase Charitable Giving?

Jackpot for Good: Can Lottery Matches Increase Charitable Giving?

From Sinners to Saints: How Redemption Stories Motivate Charitable Giving

From Sinners to Saints: How Redemption Stories Motivate Charitable Giving

Dancing for a Cause: Examining the Role of K-Pop in Mobilizing Youth for Charitable Giving during Ramadan

This research investigates the success of the "K-POP Dance Cover Showcase & Charity Event (SxS Ngabuburit Vol. 2)" as a case study within event tourism, focusing on its utilization of Ramadan as a catalyst for charitable giving. Grounded in a participatory approach, the researcher, actively involved in event planning and execution, augmented findings with interviews of the organizing leader. The event, held within a local community, attracted 20 dance groups and 300 spectators, raising Rp. 2.6 million for charity, solely from local participants. K-Pop's global influence transcends entertainment, extending to philanthropic endeavors. The integration of K-Pop with charitable initiatives, especially within a local context, remains underexplored. A participatory approach intertwined with semi-structured interviews was adopted. The researcher's involvement from planning to execution provided first-hand insights, while interviews with the organizing leader unveiled motivations and operational intricacies. Ramadan served as a pivotal driver, harnessing spiritual values to mobilize youth towards charitable acts. The event exemplified communal solidarity and social consciousness, transcending cultural boundaries. Operational insights highlighted strategic alignment with Ramadan's temporal significance, guiding decision-making processes. This study elucidates the success of the "SxS Ngabuburit Vol. 2" event, showcasing how the integration of K-Pop with Ramadan charity initiatives fosters community engagement and philanthropy. Recommendations include leveraging cultural and temporal contexts to maximize impact in future event planning.

Transitory Income Windfalls and Charitable Giving: Evidence from Norwegian Register Data, 1993–2021

Abstract This paper studies the impact of unearned, transitory income shocks on charitable giving using Norwegian administrative data. We exploit the random timing and size of lottery wins and our long time period (1993–2021) to estimate both short- and longer-term impacts. We find no meaningful effect of small windfalls. Yet, windfalls exceeding $10,000 induce a long-lasting increase in the likelihood to donate, the absolute level of donations and the share of annual income donated (conditional on donating). We show that this is consistent with individuals thinking of large transitory income shocks as a long-term addition to their annual income.

Individuals From Higher Social Classes View Charitable Giving as a Solution to Societal Issues

ABSTRACTCharitable giving is often seen as a flexible and efficient way to address societal issues. However, it has also been criticised for having the potential to undermine governmental responsibility for providing public services and leading to concentrations of power. Across three studies, we investigated whether high social class is linked to viewing charitable giving favourably and as fulfilling an important function in society. We found correlational (Studies 1 and 2; United Kingdom and Netherlands; N = 1613) and experimental (Study 3; United Kingdom; N = 400) evidence that high social class is linked to more favourable views of charitable giving. Social class, however, was not associated with preferences for policies aimed at promoting charitable giving over systemic policies when targeting specific social issues. These findings suggest that social class influences general attitudes towards philanthropy but does not consistently guide preferences for specific policies addressing social issues.

Who Cares About Nonprofit Reputation: Individual Differences in the Relationship Between Nonprofit Reputation and Charitable Giving

ABSTRACTOur study examined how individual characteristics shape the way different dimensions of nonprofit reputation impact charitable giving decisions. We used data from a 2 × 2 × 2 full factorial survey experiment and operationalized reputation in three dimensions: financial efficiency, media visibility, and accreditation status. First, our findings show that information about high financial efficiency leads to increased donations from individuals who are older, White, or have higher levels of education, but fewer donations from individuals who are more religious or employed in the nonprofit sector. Second, information about accreditation status tends to drive more donations from older individuals but fewer donations from those who are more religious or conservative. The results underscore the significant role of individual differences in explaining the effects of nonprofit reputation on charitable giving decisions. Moreover, our study offers practical insights into how information regarding nonprofit reputation can be strategically utilized to solicit donations and educate donors.

Levering Up to Do Good: Direct Long–Short Investing and Charitable Giving

Levering Up to Do Good: Direct Long–Short Investing and Charitable Giving