Barriers to charitable giving

A-Tier
Journal: Journal of Public Economics
Year: 2023
Volume: 224
Issue: C

Authors (3)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Donating to charity requires time, effort and attention. If the costs to give are perceived to be large, charities may lose out on donations. We develop a nonparametric test for the presence of these general nuisance costs and conduct a large-scale field experiment to show that costs to give are sizable and impactful. Potential donors were offered a 5:1 fixed match if their donation met or exceeded a minimum amount (e.g. $1, $5 or $10). Absent nuisance costs, the probability of donating should decrease as the minimum amount increases. We find the opposite. We estimate that about half of donors in our sample have nuisance costs of $7 or more. Eliminating these costs would double donations. Charities seeking to expand donations from small donors thus face challenges. Offering a fixed match for donations above a certain threshold may be more effective, by essentially covering nuisance costs, than the standard practice of subsidizing all donations with dollar-for-dollar matches.

Technical Details

RePEc Handle
repec:eee:pubeco:v:224:y:2023:i:c:s0047272723001275
Journal Field
Public
Author Count
3
Added to Database
2026-01-25