Donation Amount Research Articles

Are purchase-triggered donations advantageous with competition?

Introducing social responsibility in product development and promotional strategies can affect the cost and demand of a firm’s product, as well as the social impact. We explore whether a firm should employ a purchase-triggered donations (PTD) strategy by proposing an analytical model in which a profit-maximizing firm decides on the product price and its donation amount to the society. Two dimensions of consumer behavior are considered – price and social concern. We identify two common forms of socially responsible action: profit-maximizing ethics, through which socially responsible behavior can actually improve firm profitability, and costly philanthropy, whereby firms engage in socially responsible behavior for their ethical and social values, even if their profitability is consequently reduced. We develop managerial insights by characterizing and exploring the optimal and equilibrium solutions. Contrary to conventional wisdom, our analysis shows that both monopolistic and duopolistic firms prefer not to engage in socially responsible behavior through PTD. On the other hand, if an upper limit is applied on the PTD amount, then competing firms may find themselves in equilibrium with either profit-maximizing ethics or costly philanthropy. In this sense, we conclude that PTD-based corporate social responsibility behavior is best described as a competitive necessity for firms engaged in competition.

Influence of the Introduction of Tax Assignations on the Amount of Donations and Subsidies

Tax assignations give tax‑paying citizens an opportunity to make decisions about a portion of their income tax paid and determine its recipient. Tax assignations are an additional source of income for non‑governmental non‑profit organizations. The Czech Republic has not introduced them yet, however, the other Visegrád Group countries have embodied this concept in their tax systems. The aim of the paper is to confirm or possibly refute the benefits of the concept of tax assignations for the current tax system of the Czech Republic. The influence of the possible introduction of tax assignations is being investigated in connection with the amount of government subsidies and in relation to motivation for philanthropic giving. In this context, the paper presents current conditions for the introduction of tax assignations. It also discusses the pros and cons of tax assignations that may serve as main arguments for or against the introduction of tax assignations in the Czech Republic. The focus of this paper is on the application of tax assignations in Slovakia as Slovakia with its historical development and structure is very close to the Czech Republic. If tax assignations are introduced in the Czech Republic, a similar development can be expected. Analysis of statistical data for Slovakia was used to explore whether tax assignations affected the amount of transfers to non‑governmental organizations and whether tax assignations could be a good additional source of funding for non‑profit organizations in the Czech Republic.

Fans Economy and All-Pay Auctions with Proportional Allocations

In this paper, we analyze an emerging economic form, called fans economy, in which a fan donates money to the host and gets allocated proportional to the amount of his donation (normalized by the overall amount of donation). Fans economy is the major way live streaming apps monetize and includes a number of popular economic forms ranging from crowdfunding to mutual fund. We propose an auction game, coined all-pay auctions with proportional allocation (APAPA), to model the fans economy and analyze the auction from the perspective of revenue. Comparing to the standard all-pay auction, which normally has no pure Nash-Equilibrium in the complete information setting, we solve the pure Nash-Equilibrium of the APAPA in closed form and prove its uniqueness. Motivated by practical concerns, we then analyze the case where APAPA is equipped with a reserve and show that there might be multiple equilibria in this case. We give an efficient algorithm to compute all equilibria in this case. For either case, with or without reserve, we show that APAPA always extracts revenue that 2-approximates the second-highest valuation. Furthermore, we conduct experiments to show how revenue changes with respect to different reserves.

Micro-Giving: On the Use of Mobile Devices and Monetary Subsidies in Charitable Giving

Mobile devices are increasingly being used by non-profits and charitable organizations as an alternative channel for philanthropy. Specifically, organizations can construct fund-raising campaigns through mobile applications or through mobile services such as SMS messages to target individuals and incentivize charitable giving. Research studying how mobile devices may be used to enhance such campaigns is limited. In this paper, we study how charitable giving through mobile apps can be enhanced through the use of push notifications and economic incentives. Using a randomized field experiment conducted in partnership with a mobile service provider in the US, we examine the effects of push notifications, monetary subsidies, and intertemporal choices of rewards on donation outcomes by individual users. Even though the donated amounts are small, consistent with cause marketing campaigns, the campaigns are sustainable since the aggregate amounts received are significant over time. Our experiments provide three main findings. First, push notifications have a remarkably high effect on donation behavior in terms of the decision to donate as well as donation amounts, especially for idle users. Second, offering rebates as economic incentives are more effective than offering matching grants, in particular for male consumers. Finally, while users are indifferent between receiving their rewards now versus later, users that are offered a rebate respond with greater alacrity when rewarded immediately rather than later. Our findings have important implications for charitable organizations and application service providers as well as for the design of cause marketing campaigns using the mobile channel.

Effectiveness of Social Media in Disaster Fundraising

When a disaster strikes, nonprofit organizations face the need to mobilize resources as quickly as possible in a limited time frame. Given its characteristics to instantly spread information to masses of people, social media is considered one of the most effective ways for nonprofits to publicize opportunities to take voluntary actions. Despite the envisioned use, however, little has been examined about the effectiveness of social media in encouraging people to give. This paper takes the case of earthquake, tsunami, and nuclear threat that struck Japan in 2011 to examine whether the use of social media was effective in nonprofit fundraising. Analyzing data collected in an original online survey, the authors find that the use of social media both before and after the disaster has a positive impact on the amount of donations that nonprofits raise.

Donation amount and consumer attitudes in cause-related marketing: Test of a mediated-moderation model

Donation amount and consumer attitudes in cause-related marketing: Test of a mediated-moderation model

Assimilation-contrast theory in action: Operationalization and managerial impact in a fundraising context

Charities often suggest specific donation amounts in their fundraising appeals, and the assimilation-contrast theory has been well-established as the explanation behind the impact of such anchors on donors' behavior. Yet, researchers who tested it in field studies have reported contradictory findings, and despite its proven reliability in the labs, this theory has had limited impact on managerial practice. Drawing on multiple streams of research, we develop a multi-step strategy to operationalize the assimilation-contrast theory in a fundraising context, and report the results of a large field experiment in which a charity used anchors to influence the behavior of 23,500 of its donors. We found that average donation amount increased by 22% and net margins increased by 36%. We report as one of the key managerial implications that the effects of the assimilation-contrast theory are largely asymmetric, implying that it is far easier for a firm to nudge customers in the direction of increased losses than in the direction of increased profit. We conclude by offering decision heuristics to those managers who do not have the resources to build an econometric model, but wish nonetheless to benefit from our findings.

Supporting Conservation: The Roles of Flagship Species and Identifiable Victims

AbstractPsychological insights into human behavior can have enormous applied value for promoting charitable giving. Nevertheless, the application of these insights to conservation appeals featuring nonhuman animals has scarcely been explored. Although people often donate more when presented with single “identifiable” victims, whether this effect also extends to nonhumans is not known. Similarly, although many conservation appeals feature flagship species, it is unclear whether flagship species generate increased donations. We experimentally investigated how (1) identifiable versus statistical beneficiaries and (2) flagship versus nonflagship species affected donations to a conservation charity. Unexpectedly, subjects did not donate more when presented with single identifiable beneficiaries rather than groups of beneficiaries. Flagship species, on the other hand, increased donation amounts relative to appeals featuring nonflagship species. We discuss how these findings can inform and improve the effectiveness of conservation fundraising appeals.

Incongruence between Verbal and Non-Verbal Information Enhances the Late Positive Potential.

Smooth social communication consists of both verbal and non-verbal information. However, when presented with incongruence between verbal information and nonverbal information, the relationship between an individual judging trustworthiness in those who present the verbal-nonverbal incongruence and the brain activities observed during judgment for trustworthiness are not clear. In the present study, we attempted to identify the impact of incongruencies between verbal information and facial expression on the value of trustworthiness and brain activity using event-related potentials (ERP). Combinations of verbal information [positive/negative] and facial expressions [smile/angry] expressions were presented randomly on a computer screen to 17 healthy volunteers. The value of trustworthiness of the presented facial expression was evaluated by the amount of donation offered by the observer to the person depicted on the computer screen. In addition, the time required to judge the value of trustworthiness was recorded for each trial. Using electroencephalography, ERP were obtained by averaging the wave patterns recorded while the participants judged the value of trustworthiness. The amount of donation offered was significantly lower when the verbal information and facial expression were incongruent, particularly for [negative × smile]. The amplitude of the early posterior negativity (EPN) at the temporal lobe showed no significant difference between all conditions. However, the amplitude of the late positive potential (LPP) at the parietal electrodes for the incongruent condition [negative × smile] was higher than that for the congruent condition [positive × smile]. These results suggest that the LPP amplitude observed from the parietal cortex is involved in the processing of incongruence between verbal information and facial expression.

Individual differences in banknote processing: the role of altruism

ABSTRACTWe evaluated whether banknotes processing depended on altruism and attitude towards money. In Experiment 1, context effects were examined when participants named banknotes blocked by category or intermixed with pictures from semantic categories. Attitude towards money was assessed by questionnaires and the degree of altruism was evaluated with the dictator game task. In this task, participants received an amount of money and they had to decide whether to donate all, nothing or part of it. A facilitation effect was found in the banknote naming task and this effect increased as the amount of donations decreased. In Experiment 2, we examined whether less altruistic individuals might focus on the relevant information needed to process banknotes in a monetary Stroop task. Only more altruistic individuals showed Stroop effects. These results are interpreted as due to enhanced control while processing relevant information associated to banknotes in less altruistic individuals.

When should the Ask be a Nudge? The Effect of Default Amounts on Charitable Donations

How does setting a donation option as the default in a charitable appeal affect people's decisions? In eight studies, comprising 11,508 participants making 2,423 donation decisions in both experimental settings and a large-scale natural field experiment, the authors investigate the effect of “choice-option” defaults on the donation rate, average donation amount, and the resulting revenue. They find (1) a “scale-back” effect, in which low defaults reduce average donation amounts; (2) a “lower-bar” effect, in which defaulting a low amount increases donation rate; and (3) a “default-distraction” effect, in which introducing any defaults reduces the effect of other cues, such as positive charity information. Contrary to the view that setting defaults will backfire, defaults increased revenue in the field study. However, the findings suggest that defaults can sometimes be a “self-canceling” intervention, with countervailing effects of default option magnitude on decisions and resulting in no net effect on revenue. The authors discuss the implications of the findings for research on fundraising specifically, for choice architecture and behavioral interventions more generally, and for the use of “nudges” in policy decisions.

A health fundraising experiment using the “foot-in-the-door” technique

ABSTRACTFoot-in-the-door (FITD) involves obtaining compliance with a small request to boost compliance with a larger request. Only a few studies to date have tested the technique in health and fundraising contexts, and even fewer have examined the psychological processes involved. To address these gaps, we conducted an experiment as an actual fundraiser for a cancer-awareness organization. The technique activated a self-concept as a supporter of cancer awareness among those in the FITD condition. Donation amount was also higher among those in FITD, but only among those with higher levels of worry and low to moderate levels of preference for consistency.

Manajemen Pelayanan Pemberdayaan Anak Yatim pada Lembaga Amil Zakat Yatim Mandiri di Surabaya

The background this study are: firstly, there are a number of zakat institutions in Indonesia, both agencies and institutions amil amil zakat zakat is still not able to optimally collect zakat funds, infaq, and sadaqah of society. Second, the persistence of people's distrust of institutions in channeling zakat zakat funds, infaq, and sadaqah, so people still rely on the old way is by direct distribution. The third officer attitudes zakat institutions in serving mustahiq should be improved because it is related to the satisfaction and familial ties between the parties with mustahiq amil zakat institutions. The results of this study are as follows: First, empowerment conducted by Yatim Mandiri covers many aspects, such as economy, education, health services, humanitarian and others. Second, each of these aspects before, have the derivation in the form of empowerment programs. Third, Yatim Mandiri as amil zakat institutions that focus on empowering orphans/dhuafa was also to empower the poor, Fourth, Yatim Mandiri as amil zakat institutions have a number of donations and charity infaq much larger than the amount of zakat donations, with ratio of 80:20, and Fifth, the service provided by the Yatim Mandiri to the poor and needy got a very good assessment from the their mustahiq. Overall, the conclusion from this study is tha t the Yatim Mandiri has done his duty to the optimum as evidenced by the very positive assessment of mustahiq and empowering the poor to the services them, and they provide from time to the time.

Encouraging ecological behaviour through induced hypocrisy and inconsistency

Remembering one’s past transgressions of a social norm is known as an effective paradigm for enhancing pro-social and ecological behaviours. Our study aimed to show that reminding one’s norm transgressions can arise cognitive dissonance and can lead to behavioural change as induced hypocrisy does. In particular, we tested whether inconsistency between the self-concept and the remembered past transgressions is or is not likely to encourage behavioural change. To reach this goal, we conducted an experiment comparing induced hypocrisy, injunctive inconsistency and descriptive inconsistency with five comparison conditions. The results showed that, as observed with the induced hypocrisy paradigm, presenting a salient injunctive norm and its past transgressions enhances psychological discomfort, actual donation and donation amounts for an ecological association. The discussion addresses applied perspectives and theoretical implications.

How to present donations: the moderating role of numeracy in cause-related marketing

Purpose Cause-related marketing (CRM) is a sales strategy that is used to improve the success of a product by including a donation to a charitable cause in its price. While marketers can present CRM donations to consumers as either absolute amounts or percentages, the predominant practice in marketing is to use the latter. As the influence of such presentation formats is not well understood, the purpose of this paper is to systematically examine their effects while taking into account the numerical ability (numeracy) of the consumers. Design/methodology/approach In two experiments, the presentation format of the donation amounts (absolute vs percentage) were manipulated and individual differences in numeracy were measured. The product type (hedonic vs utilitarian) and sales price were varied. We found this effect for high and low price levels and for hedonic and utilitarian products. Findings The results of both experiments consistently supported the hypothesis presented in this paper that for people with lower numeracy, their purchase intentions were higher when absolute donation amounts were presented. We found this effect for high and low price levels and for hedonic and utilitarian products. Originality/value The present paper shows that the current practice of presenting donations in percentages is inferior to presenting donations in absolute amounts because a large number of consumers have trouble interpreting percentages appropriately. Therefore, it indicates that the default option for marketing managers should be to present donations in absolute amounts for hedonic and utilitarian products with low and high prices.

Can an organization's philanthropic donations encourage consumers to give? The roles of gratitude and boundary conditions

AbstractThis study examines whether an organization's charitable donation will prompt consumers who closely identify with the organization to give to the charity as well. We posit that identifying with a benefactor will enhance the perception that consumers are involved in the donation process, which evokes grateful feelings. We also predict that the amount of the organization's donation will positively moderate the influence of organization identification on charity‐evoked feelings of gratitude, while attitude toward the organization's charity will positively moderate the gratitude–donation relationship. In Study 1, we show how gratitude arises in the context of corporate social responsibility by demonstrating the mediating role of perceived donation contribution in the relationship between organization identification and gratitude. In Study 2, we demonstrate that organization identification has a significant indirect effect on donation intention through gratitude. Multigroup analyses show that the identification–gratitude link is more salient when the organization commits to donating a larger amount of money to a charity. Furthermore, the impact of gratitude on donation intent is significantly stronger for individuals who hold a favorable attitude toward the organization's corporate social responsibility activity. Our findings indicate that an organization's charitable giving also encourages consumers to give to the community via vicariously felt gratitude. Copyright © 2016 John Wiley & Sons, Ltd.

Corporate and NGOs’ Voluntary Disclosure on Collaboration. Evidence from Poland

Collaboration between NGOs and corporations is an expanding research area that brings up new questions. The paper seeks to establish the scope of information on philanthropic cooperation revealed by corporations and charitable organizations in a transition country (Poland) and its determinants. The necessary data were obtained from the websites of corporations and foundations and from the reports on corporate social responsibility (CSR). The content analysis focused on the disclosures made by 41 corporations and 82 foundations. A total of 131 collaboration cases available on the websites and 95 cases disclosed in relation to CSR were examined. The research allowed the key factors determining the amount of information on philanthropic partnerships displayed by corporations and charities on their websites and in CSR reports to be identified. In the case of corporations, the NGO being a corporate foundation and belonging to the group of biggest donors were the most important factors. As far as NGOs are concerned, the major factors were the NGO being, or not, a corporate foundation and the amount of donations as a percentage of its total revenue. DOI: http://dx.doi.org/10.5755/j01.ee.27.1.9338

Donations Make People Happier: Evidence from the Wenchuan Earthquake

We examine the effect of donation on the happiness of donors using the 2010 wave of the China Family Panel Study. We consider data from the Wenchuan earthquake, which has induced a large amount of donations from all Chinese communities. We use two measures of donation behavior, namely, donations for victims of the Wenchuan earthquake and for general purposes. We address the endogeneity problem using the percentage of donation in the community the respondent lives in as the instrumental variable, conditional on the generosity of other residents toward each other in the same community. We also employ the propensity score matching method to check for the robustness of our results. All results show that donation has a significantly positive effect on happiness. Our study provides new evidence on the relationship between donation and happiness using natural observations, which complement the experimental evidence in the recent literature.

Spectroscopic and computational investigations on the origin of charge transfer between included neutral guest molecules and a functionalized anionic layered host.

Layered double hydroxides (LDHs) or anionic clays are an important class of ion-exchange materials, well known for drug and gene delivery and several other applications including catalysis, bioactive nanocomposite, electroactive and photoactive materials. Their structure is based on positively charged brucite-like inorganic sheets with the interlamellar space being occupied by charge-compensating exchangeable anions. In spite of having a vast scope many of the applications of LDHs are restricted as their host-guest chemistry is limited to ion-exchange reactions. Recently we have shown for the first time that charge-transfer interactions can be used as a driving force for the insertion of neutral guest molecules (ortho- and para-chloranil) within the galleries of an Mg-Al LDH by forming a charge-transfer complex with aniline pre-intercalated as p-aminobenzoate anion. Here, we have performed quantum chemical calculations in combination with molecular dynamics simulations to elucidate the nature of interactions, arrangement and the evaluation of electronic and Raman spectral signatures of the chloranil charge-transfer complex included within the galleries of the Mg-Al LDH. The natural bond orbital (NBO) analysis has been used to understand the nature and origin of the unidirectional charge-transfer that lead to the unusual insertion of chloranil in the galleries of the Mg-Al LDH. The NBO analysis reveals that a considerable amount of electronic charge redistribution occurs from the p-aminobenzoate to the chloranil during latter's insertion within the LDH galleries with a very negligible amount of back donation. This work is expected to pave the way for understanding the host-guest chemistry and targeted and controlled delivery of poorly soluble drugs.

Efektivitas Promosi Melalui Radio Terhadap Kepatuhan Para Muzakki di Surabaya

This study aims to determine the effectiveness promotion through radio to obedience of muzakki channelling zakat at the zakat institute in Surabaya. This research is qualitative. The approach in this study using case study strategy. Characteristics of the informants in this study is muzakki distribute their zakat to zakat institutions in Surabaya and ever listen promotion of zakat institutions through radio. Informants in this study amounted to 9 muzakki. Technical data collection is done by using the interview method. After the data collected do data reduction, data presentation and conclusion (verification). The results showed that the promotion through radio by zakat institution in Surabaya improving obedience muzakki said to be effective. Effectiveness is measured by three indicators, there are muzakki understanding of zakat, zakat practice frequency, and amount of donation.