Kimberley Scharf, Sarah Smith, 16 September 2016

The rise of peer to peer (P2P) fundraising – soliciting donations on behalf of a charity for undertaking an activity  – has paralleled the growth of online social networks, but the incentives driving online donation behaviour are still poorly understood. This column examines giving behaviour for a large sample of P2P fundraising projects that individuals promoted to their Facebook friends. A negative relationship is found between the number of friends and donation size. The findings suggest a ‘relational altruism’ motive, where donors give because they care about the person who is raising the money.

Christine Exley, 27 December 2014

Decisions involving charitable giving often occur under the shadow of risk. A common finding is that potential donors give less when there is greater risk that their donation will have less impact. While this behaviour could be fully rationalised by standard economic models, this column shows that an additional mechanism is relevant – the use of risk as an excuse not to give. In light of this finding, this column also discusses how charities may benefit from structuring their donation requests in particular ways. 

Dean Karlan, John List, 02 April 2012

With governments strapped for cash, charities are stepping up to provide public goods. But how can charities mobilise support from small donors to fund their work? CEPR DP8922 investigates whether altruists would donate more if they knew more about a charity’s quality. In the authors’ experiment, Bill and Melinda Gates matched donations to a particular charity. Small donors saw this as a signal of the charity’s quality – and donations soared.

John List, 30 April 2009

John List of the University of Chicago talks to Romesh Vaitilingam about the use of field experiments in economics, including his research on people’s motivation for charitable giving, gender differences in competitiveness, and discrimination in the labour market. The interview was recorded at the American Economic Association meetings in San Francisco in January 2009.

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