Whether and How Much to Give: Uncovering the Contrasting Determinants of the Decisions of Whether and How Much to Give to Charity with Two-Stage Alternatives to the Prevailing Tobit Model

Charitable giving involves two seemingly distinct decisions: whether to give and how much to give. However, many researchers methodologically assume that these decisions are one and the same. The present study supports the argument that this is an incorrect assumption that is likely to generate misleading conclusions, in part, since the second decision is much more financial in nature than the first. The argument that charitable giving entails two distinct decisions is validated by empirically dismissing the prevailing Tobit model, which assumes a single decision, in favor of less restrictive two-stage approaches: Cragg’s model and the Heckman model. Most importantly, it is shown that only by adopting a two-stage approach may it be uncovered that common determinants of charitable giving such as income and gender affect the two decisions at hand very differently. Data comes from a high-quality 2012 Danish survey and administrative registers.     

Information Source Reliance and Charitable Giving Decisions

This study examines the relationship between donor reliance on information and donors’ subsequent charitable giving decisions of both time and money. To examine this relationship, we utilize data from an original survey of residents in San Diego County, California (n = 1,002), asking donors about their charitable activities and the information sources that they use to facilitate their charitable decisions. Our findings reveal that relying on information from both nonprofit accrediting agencies and personal experiences positively influences donors’ decision to give time to nonprofit organizations (that is, volunteer), but has no significant impact on decisions to give money. Implications of these findings are discussed.     

Does patience matter in marriage stability? Some evidence from Italy

Time preferences can affect divorce probability by both affecting the quality of the match and affecting the spouses’ reactions to negative shocks. We analyse the relationship between time preferences and divorce decisions using data from the Italian Survey on Household Income and Wealth, which provides a measure of time preferences based on a hypothetical financial situation in which individuals have to decide how much money to give up in order to receive a certain amount of money immediately rather than in one year’s time. By controlling for a number of individual and family characteristics, we find that impatient individuals are more likely to experience divorce. The effect is robust to different specifications of our model and is not affected by reverse causality problems. We also find that the more risk averse individuals are, the less likely they are to experience divorce.     

Demand for decision autonomy and the desire to avoid responsibility in risky environments: Experimental evidence

This paper experimentally studies individuals’ willingness to pay for the authority to make risky decisions for themselves, and the willingness to take responsibility for others, as primary determinants of leadership willingness. We consider a setup involving a pair of individuals, where one individual is designated to make both parties’ decisions by default. Depending on treatment, either party can express a willingness to pay to change this situation. If one’s willingness to pay to make her own decision herself is positive (negative), we interpret it as a demand for autonomy (a desire to delegate). On the flip side, if one’s willingness to pay to avoid making a decision on behalf of another person is positive (negative), we interpret it as a desire to avoid responsibility (a demand for authority). We find that on average, individuals are willing to pay positive amounts of money to make their decisions themselves, and incur positive but smaller opportunity costs for the right to make decisions for others. Certain individual and contextual characteristics emerge as important predictors. Notably, (1) men are more likely to demand both autonomy and authority at the same time, (2) individuals with other regarding preferences are more likely to pay to avoid taking responsibility for others’ decisions when the probability of loss is high. Exploring differences between individuals’ own decisions and the decisions they make on behalf of others, we find that subjects with other-regarding preferences tend to “cautious-shift” when making decisions on behalf of others. Also, we find that individuals who would like to avoid responsibility also tend to “shift” their decisions when put in a decision-making role. The results have implications for the allocation of decision-making authority in pairs and leadership.     

Engaging Children in Meaningful Charity: Opening-up the Spaces within Which Children Learn to Give

This paper presents qualitative evidence from an in-depth, participative action research project with 150 children aged 4–8 years old, exploring their experiences, perceptions and preferences regarding charitable giving. Most children positively engage in charitable giving through home, school and their community; however, less than 20% are aware of the cause area they are being asked to support, and most have little decision-making in their giving. Children’s willingness to engage increases when they critically examine the cause area and are facilitated to lead on giving decisions, often resulting in increased and sustained efforts to support cause areas that matter to them.     

Majority size and conformity behavior in charitable giving: Field evidence from a donation-based crowdfunding platform in Japan

A charitable donor typically imitates the majority contribution of other donors. This study examines the relationships between majority size and this so-called donor’s conformity behavior, by empirically investigating the impacts of multiple earlier donations on the donation of a subsequent donor to JapanGiving, a donation-based crowdfunding platform in Japan. This analysis is possible because the platform’s webpage displays the previous donation amounts in chronological order, thus allowing us to examine the modal amount of more recent donations. By using data on 9989 actual donations, our dynamic panel analysis suggests that when the number of most recent continuous modal donations increases, the likelihood that a subsequent donor matches the modal amount increases. This result supports the notion that a donor’s conformity behavior is more likely to occur when a greater proportion of other donors give a similar amount. Furthermore, the effects of continuous modal donations are strongly observed for low monetary ranges. We interpret that initiating further cooperation among a large number of less cooperative other donors would become harder, or individuals would obtain an excuse for less cooperation due to the others’ behaviors. Finally, we discuss how our findings connect economic studies of charity and social psychology studies of conformity and could help improve the effectiveness of fundraising by charities.     

Culture Clash? Predictors of Views on Amenity‐Led Development and Community Involvement in Rural Recreation Counties

Development is contentious in high‐amenity rural areas experiencing migration‐driven population growth. While some residents welcome the associated economic, demographic, and social changes, others resist these changes. Using survey data, we examine the predictors of views on amenity‐led development in rural recreation counties across the United States, including to what extent there is evidence of a “culture clash,” that is, whether values and attitudes of new and long‐term residents differ about local development issues as is often assumed. In addition, we examine whether attitudes toward development impact an important community outcome—residents’ involvement in their community. We find that development broadly speaking is a divisive issue in rural recreation areas and that there is evidence for a culture clash over development. Newer residents are less likely to see development as a problem in their community than long‐term residents, yet more likely to think existing rules to restrict development are good, providing mixed support for the “gangplank” hypothesis. We find that those who see development as a problem are more likely to be involved in local organizations. This research provides a better understanding of views of development in rural recreation counties and evidence of how these attitudes matter in broader community outcomes.     

Giving time or giving money? On the relationship between charitable contributions

This paper studies philanthropic behaviour in terms of money and time contributions for charitable organisations. Using a unique dataset, which is representative of the German population, we examine the pure contributions of individuals who give either money or time as well as joint contributions of individuals who give both money and time. We find that the sequential decisions to give to charity and how much to give can be explained by different socio-economic characteristics. We report particularly pronounced gender differences among pure contributions, an interesting pattern of human capital variables such as income and education, and possible differences in the type of philanthropic goods.     

Behavioral economic phenomena in decision-making for others

We examine whether biases identified in the behavioral-economics literature apply in decision-making for others (DMfO). We conduct a laboratory experiment in which subjects make decisions on behalf of themselves and others in eighteen tasks that measure the following biases: present-bias in time preferences, reflection effect in risk preferences, compound risk aversion, decoy effect, anchoring bias, endowment effect, and identifiable-victim bias. In our experiment, DMfO is DMfO simpliciter: unincentivized decisions made by one individual on behalf of another–the individual making decisions faces no direct costs or benefits when engaging in DMfO (as she would in a principal-agent framework or with bequest motives), and DMfO is not framed as giving advice or guessing others’ behavior. Although we find that DMfO is by and large statistically indistinguishable from decisions for oneself, we identify the following self-other discrepancies: (i) willingness to pay (i.e., bids to procure goods and donations to charity) is higher in DMfO than in decisions for oneself in tasks associated with the anchoring bias, end owment effect, and identifiable-victim bias; and (ii) the propensity to give uninterpretable responses is higher in DMfO than in decisions for oneself. We also find order effects, with DMfO more similar to decisions for oneself when DMfO follows decision making for oneself. Lastly, in response to open-ended items soliciting self-reports of subjects’ approach to DMfO, most subjects report having followed some version of the “Golden Rule” (e.g., deciding for others as they would for themselves) or having tried to maximize the other subject’s payment or utility; very few subjects report motivations that can be construed as rivalrous.     

Nonprofit watchdogs: Do they serve the average donor?

Nonprofit watchdog organizations—organizations devoted to rating the accountability and transparency of nonprofits—claim to serve donors who are selecting which nonprofits to support. However, using three waves of the Harris Interactive Donor Pulse, we found that the overwhelming majority of donors (77.6 percent) do not consult these online intermediaries when making donations. Those who do are likely to fall into one of two groups: donors who give large sums of money or donors who are engaged in advocacy. We conclude with conceptual and practical implications.     

Gifts, Cash, and Stigma

Each year individuals in the United States transfer between $50 and $72 billion in resources in the form of noncash holiday gifts, despite the fact that holiday gift recipients apparently value their noncash gifts at about 10% less than the prices paid by the givers. We document that cash giving is more likely from givers who tend to give unwanted gifts, indicating that givers are concerned with the utility of their recipients. The rarity of cash gifts can be rationalized by a stigma of cash giving that we are able to parameterize and estimate using a simple structural model.     

Becoming: Identity and spirituality

An individual’s identity answers the questions of who, what, where, and why the individual is. An overall identity is made up of multiple constituent identities. These identities may not be fixed over the life course, but may change as a result of conscious choices as well as serendipity or calamity—life transforming events which cannot be anticipated, which remove what had been the certainties and norms of life, and which can leave the individual disconnected from what had been her past and from her hoped for future. In this paper we develop a two-period behavioral model of an individual whose personal identity is an amalgam of N identities, one or more of which may be spiritual in nature. Some identities are actualized at a point in time and some remain latent. We model how individuals allocate resources among current and hoped for future identities, and how these resource allocation decisions and identity actualizations are affected by the interaction of choices and unanticipated external events. We argue why a spiritual identity may be actualized, how it interacts with other identities, and why, in giving context to an individual’s life, it enables her to define and to strive toward her overall identity—to become.     

Wie ehrlich berichten männliche Jugendliche über ihr delinquentes Verhalten?

Survey-based studies on the prevalence and causes of deviant behaviour very much depend on the honesty of respondents. However, the validity of self-reports is rarely investigated. We report on a external validation of self-reported delinquency of male juveniles based on two survey samples — face-to-face interviews in households (N=309), and paper and pencil interviews in school (N=337) — which have been done in 1999 and 2000 in Freiburg and are used for record checks of self-reported police contacts both on the individual and aggregate level. Individual-level record checks reveal that a majority of respondents has honestly reported contacts with the police, while there are a considerable number of both ‘false negative’ and ‘false positive’ answers which come predominately from respondents with low educational and social status and of migration background. As these groups show high non-response rates as well, the correlation between delinquency and socio-economic status is likely to be underestimated. The school survey, on the other hand, yields higher and more realistic prevalence rates. However, comparisons between the two survey modes hint at differential effects of social desirability which question the validity of self-reports by respondents with high educational status. Survey results on self-reported delinquency should generally be interpreted with great caution, and more research on the mode effects of class room interviews are deemed necessary.     

Tragic Choices in Humanitarian Aid: A Framework of Organizational Determinants of NGO Decision Making

Humanitarian NGOs face difficult choices about whom to help and whom not on a daily basis. The research question in this article is how humanitarian NGOs make these difficult decisions and why in a particular way. March’s study on consequential and appropriate decision-making processes is used to analyze the nature and course of NGO decision making. Since March’s two models are often explicitly or implicitly linked to certain types of organizational settings—as reflected in an organization’s formal structure, compliance and coordination mechanisms—this article particularly zooms in on the relationship between NGO decision-making processes and these settings. The theoretical framework is illustrated and discussed by means of an exploratory comparative case study of two international humanitarian NGOs: Médecins Sans Frontières Holland (MSF Holland) and Acting with Churches Netherlands (ACT Netherlands).     

The influence of religiosity on charitable behavior: A COPPS investigation

We examine the role of religion in charitable giving and find that the religious preference of both the donor and the recipient organization influence giving behavior. By exploiting a panel survey of charitable giving, we demonstrate that traditional empirical analysis on charitable giving masks important differences among donor groups. Religious giving by religious individuals is least responsive to changes in price and income, while secular giving by secular individuals has the greatest sensitivity.     

Warm glow of giving collectively – An experimental study

We report on an experiment to test for a warm glow of giving collectively. Comparing subjects’ affective state before and after the experiment, we find that individual charitable donations create a feeling of warm glow while collective donations do not. Proposing to donate the full endowment collectively improves subjects’ affective state significantly, though the behavioral data suggests that this result cannot be explained by the notion of expressive voting. We also find that subjects who consider Kant’s Categorical Imperative to be an important guideline for individual decisions are more likely to donate the full endowment to charity. This result supports the notion of Kantian thinking as an independent factor explaining cooperative behavior (Roemer, 2014).     

Adaptive Strategies,Gender Ideology,and Work‐Family Balance Among Dutch Dual Earners

Using questionnaire data on 149 Dutch dual‐earner couples with young children participating in the European Famwork study, we examine how adaptive strategies and gender ideology relate to parents’ perceived success in balancing work and family. Path analysis indicates that some adaptive strategies may harm individuals’ work‐family balance, particularly when they are made in the domain where the time budget is limited. In the need to succeed in multiple roles, however, endorsement of traits traditionally linked with the opposite gender, that is masculine traits for women and feminine traits for men, seems beneficial. We speculate that two underlying mechanisms — social pressure and time constraints — jointly operate in determining perceived success in balancing work and family.     

When i’m right you’re wrong: attitude correctness facilitates anger and approach motivation toward opposing individuals

Attitude correctness and attitude clarity define the broader concept, attitude certainty. Repeating one’s attitude to oneself causes attitude clarity, while learning that the majority of others agree with you causes attitude correctness. The current research tests how attitude correctness influences emotions and behavioral intentions toward individuals with opposing attitudes. We predicted that compared to clarity, those high in attitude correctness would feel more anger toward an opposing individual and a stronger desire to confront, oppose, and argue with them. Results across two studies supported predictions; believing that you hold the same attitude as the majority sparks feelings of anger toward individuals with differing viewpoints. The current work contributes to our understanding of heated debates and ugly confrontations.     

Charitable Giving: What Influences Donors’ Choice Among Different Causes?

While the literature is replete with studies that identify factors explaining why people are likely to make monetary contributions, less is known about which particular charitable causes they are likely to choose and how much they donate to them. This article examines donor choice among eight different causes using survey data collected in 2011 for a nationally representative sample in Austria. In particular, the study investigates the role of individual-level factors: subjective dispositions such as empathic concern, trust, and religiosity, and resources such as education and income. We find that subjective dispositions rather predict a donor’s incidence of giving among causes but not the amount donated. Human resources, in contrast, are associated with both the incidence and the amount donated to particular causes, and they also mediate the impact of subjective dispositions. What is more, the study reveals that being asked to donate has the highest explanatory power regarding the incidence of giving among all causes investigated.

     

The Human Right to Leisure in Old Age: Reinforcement of the Rights of an Aging Population

The right to leisure is recognized as a human right under the 1948 United Nations Universal Declaration of Human Rights. The actual meaning and material content of this human right is subject to debate. The aim of this study is to examine the extent and the context to which this human right is specifically recognized with regard to older persons. Methodologically, this study textually analyzed 17 different international older persons’ human rights documents. The findings reveal that in the majority of these documents there is no reference to the right to leisure. In the remaining documents, the right to leisure is mostly referred to indirectly or in a narrow legal construction. These findings support the notion that despite the growing body of knowledge regarding the importance of meaningful leisure in old age—and its empowering and anti-ageist nature—this knowledge has not transformed into a legal human rights discourse.