The Effect of Social Information on Giving from Lapsed Donors: Evidence from a Field Experiment

Using data from an experiment carried out by a large nonprofit organization, this paper finds that lapsed donors who received a solicitation letter referencing a relatively high donation made by another donor (high social information) were more generous in giving, but overall less likely to make a donation, relative to the baseline (low social information) group. After using the propensity score matching to correct for pretreatment differences in the two experimental groups, the estimated effect of high social information on the average donation amount is an increase of $14.95 (45 %). However, high social information is also found to reduce the probability a lapsed donor will give by 4.1 %. Thus, high social information can have potentially offsetting effects when applied to lapsed donors. Nonprofits should consider this trade-off when employing social information fundraising techniques to solicit donations from lapsed donors.     

Appeals to social norms as policy instruments to address consumption externalities

We consider appeals to social norms as a policy instrument to address consumption externalities. We explore whether appeals to social norms can be an efficient policy instrument and compare the efficiency of such appeals to the efficiency of taxation in addressing consumption externalities. We find that when the existing norm helps to shift consumption towards the socially optimal level of consumption, taxation welfare dominates appeals to social norms as a policy tool. While previous studies have found that economic instruments are superior to information in other contexts, we arrive at a different conclusion for situations where the norm shifts behavior away from what is socially optimal. In such cases appeals to social norms can be a better policy instrument than taxation.     

Followers and leaders: Reciprocity,social norms and group behavior

This paper proposes a model of norm-driven preferences and studies the determinants of norm compliance in games. It predicts that (i) compliance follows a law of demand and (ii) people respect norms in a reciprocal manner: they are more likely to comply if others are expected to comply too. Reciprocal norm compliance might explain why successful revolutions or strikes grow in a snow-balled fashion, leaders motivate others to join social movements, or sequential mechanisms (instead of simultaneous ones) are usually employed in charity fundraising.     

Norm formation in social influence networks

I propose a mechanism of norm formation and maintenance that combines classical theory in social psychology on attitudes and social comparisons with a formal network theory of social influence. Underlying the formation of norms is the ubiquitous belief that there is a correct response for every situation and an abiding interest for persons to base their responses on these correct foundations. Given such a belief, a normative evaluation of a feeling, thought or action is likely to arise when persons perceive that their positive or negative attitudinal evaluation is shared by one or more influential others. If interpersonal agreements validate attitudes and transform attitudes into norms, then the development of a theory of norm formation may draw on extant “combinatorial” theories of consensus production that describe how shared attitudes are produced and maintained in groups. The network theory of social influence that I employ is one such combinatorial approach. An important sociological implication of this network theory is that the content of norms must be consistent with the social stratification (or more general pattern of inequality) of interpersonal influences in a group. I illustrate the theory with an analysis of Roethlisberger and Dickson’s (1939) classic observations on the Bank Wiring Observation Room.     

Cooperation between newcomers and incumbents: The role of normative disagreements

Cooperation in groups often requires individual members to make costly contributions that benefit the group as a whole. Prior research suggests that shared norms can help to support ingroup cooperation by prescribing common standards of how much to contribute. These common standards may be disrupted when groups undergo membership change, i.e., when members from outgroups enter the ingroup. When newcomers and incumbents have different notions about how much to contribute, a normative disagreement ensues that could undermine cooperation and the extent to which individuals identify with the group. In a laboratory experiment, we manipulate whether newcomers and incumbents disagree about how much to contribute in a public goods game with peer punishment. We examine whether normative disagreement between newcomers and incumbents affects newcomer-incumbent relations in terms of group identification, the emergence of a social norm, and costly punishment. The main goal is to test whether normative disagreement and the resulting newcomer-incumbent relations harm cooperation in terms of contributions to the common good. We find that normative disagreement between newcomers and incumbents negatively affects the emergence of a shared social norm and lowers feelings of group identification. Contrary to expectations, normative disagreement does not affect cooperation negatively. Instead, participants adjust their behavior to each other’s standards, using punishment for norm enforcement. This punishment is especially directed at low-contributing newcomers, leading them to conform to the incumbents’ higher contribution standards.     

The Influence of Commitment,Trust, Satisfaction,and Involvement on Donor Retention

Due to certain developments in the business of fundraising, there exists an increasing necessity to theoretically and empirically analyze donor behavior. This article examines donor retention from the donor’s point of view. It concretizes four antecedents and their relationships with one another. The influencing variables investigated are commitment, trust, satisfaction, and involvement. The empirical analysis conducted in Germany among donors of four representative social non-profit organizations shows that all variables have an influence on donor retention, although some of them only indirectly.     

Fairness and reputation effects in a provision point contributions process

This article reports on an investigation of how issues of fairness and reputation affect individual contributions in a group decision-making setting. In the context of a threshold public goods provision experiment, treatments were performed to determine how individuals react to limited and unlimited information about the contributions of other group members. Experimental results show that revealing anonymous information about individual contribution behavior caused a concern about equity, which led to decreased average contributions and a higher variance in contributions. These effects were partially offset when individual-specific contribution information was displayed. In their conclusion, the authors discuss how the results apply to different fundraising environments.     

Morals,Ethics and practice — in search of social justice

Abstract

This paper reports a study of sources of influence on moral and ethical decision-making in social work practice. Practitioners from ten government and five non government agencies kept journals about the main moral issues they faced over a one-month period and were then interviewed about the nature of those issues, their resolution and the influences that shaped those resolutions. Practitioners' personal moral perspectives were found to be the main sources of influence on resolutions to a wide range of dilemmas and most of those resolutions did not conform to accepted social wok ethical practice principles. Even though the results of this study are drawn from a small sample, some implications are suggested for practitioner development, professional ethics and social work education.     

Social signals as design interventions for enhancing citizen science contributions*

Despite the scientific potential and increasing popularity of web-based citizen science, low contribution from volunteers is often a major hurdle. Studies have shown that individual behavior could be altered through targeted design interventions, but little is known about the specific factors that modulate volunteers’ contributions. A particularly elusive question entails the role of social feedback, in the form of targeted notifications about the contribution of other volunteers. Based on social comparison theory, we hypothesized that (1) volunteers increase contribution when presented with information about a high-performing peer or group, and (2) volunteers conform more strongly to a group rather than to a single peer. To test whether volunteers’ contributions change due to the exposure to the contribution of a peer or group norm, we systematically varied the information presented to participants in an environmental monitoring citizen science project. Volunteers increased their contributions when they were presented with the contribution of a high-performing peer and norm, but they were not influenced by a low-performing peer or norm. Further, we found that volunteers were more likely to match the contributions of a group than that of a peer. However, when volunteers were simultaneously exposed to information about a peer and a group, the effect depended on the respective performance of the peer and group. A theoretical model was developed to explain volunteers’ response and dissect the specific role of social comparison. Our findings offer the possibility of increasing volunteers’ contributions through design interventions.     

Individual Preferences Over Development Projects: Evidence from Microlending on Kiva

Peer-to-peer microfinance connects philanthropic citizens with poor entrepreneurs in the developing world, offering new ways to channel charitable contributions. Although the literature suggests that donors?? perceptions of effectiveness affect charitable giving, very little is known about what types of projects individuals perceive as more effective. Using data from Kiva.org, this article presents evidence on the relative popularity of competing development projects. We present estimates of the impact of publicly visible project characteristics on funding speed. Assuming that Kiva lenders are motivated by poverty alleviation, the results shed light on individual philanthropists?? perception of project effectiveness. Knowing this can help practitioners design fundraising strategies more effectively, especially for projects that are inherently less popular.     

Understanding the donor experience: Applying stewardship theory to higher education donors

This study sought to discover how stewardship strategies and involvement impact organization-public relationship (OPR) outcomes for higher education donors at three different levels of giving. The first study to compare annual donors, major gift donors with one endowment, and major gift donors with two or more endowments suggests that each donor type experiences stewardship and OPR differently. Specifically, as donors deepen their giving relationship with an institution, they experience stewardship and OPR outcomes more positively. Additionally, involvement only slightly contributes to this relationship between stewardship and OPR outcomes. Findings also reveal that stewardship may include only three strategies, including a new concept called respect. Implications for fundraising practice and theory are made.     

Interactive and higher-order effects of social influences on drug use.

The study of moderators and higher-order effects of social influences on drug use has many implications for theories of health behavior. In the present study, we investigated the longitudinal predictive effects of some of the prominent moderator variables that represent forms of susceptibility toward social influence in teenage drug use. We also studied the possibility that social influence may predict drug use in nonlinear (quadratic) forms, consistent with theories proposing that threshold or decelerating effects may occur in social influences on normatively sanctioned behaviors. Results showed that several of the interactive and quadratic predictive effects were significant. The findings supported the views that certain moderator variables act as buffers, which either protect the individual from social pressures to use drugs, or make the individual more susceptible to such pressures. In addition, two of the obtained quadratic effects of social influence lent support to the application of social impact theory to drug use. Overall, our findings suggest that interactive and nonlinear approaches to social influences on drug use provide a unique and viable theoretical perspective from which to construe this problem health behavior.     

Role-reversibility, stochastic ignorance, and social cooperation

This paper studies the effect of role-reversibility and stochastic ignorance, conditions that minimize the strategic bias of individual choice, on social cooperation. Under role-reversibility, each agent maximizes her expected payoff, knowing the status quo at the time of the action as well as the ex ante probabilities about her future roles. In contrast, under stochastic ignorance, players make their choices under a Harsanyi-type veil of uncertainty. Without the role-specific context influencing the judgment of the individual, cooperative norms emerging under stochastic ignorance are more likely to be close to first-best than are norms chosen under conditions of role-reversibility.     

VIOLENT VALUES, CONDUCT NORMS, AND YOUTH AGGRESSION: A Multilevel Study in Iceland

The subculture of violence approach suggests that group adherence to values and norms that encourage violence influence aggressive behavior through two analytically separate processes: (1) internalization of values encouraging violence, and (2) social control stemming from others' adherence to conduct norms. While some attention has been paid to the former process, the research has rarely addressed the latter. We examine the individual-level and contextual effects of values that encourage violence and perceived conduct norms on youth aggression in Iceland. The results indicate that group adherence to violent values and norms influences aggression through social control as well as internalization (socialization), lending cross-cultural support to the subculture of violence perspective.     

The more you know,the more you give: Influence of online disclosure on European community foundations' donations

Competition is high in the charitable contributions market, and donors demand to know how nonprofit organizations use the money they receive. In scrutinizing the variables that affect the capacity of nonprofits to attract donations, previous research has highlighted the positive influence of the amount of financial and performance information that nonprofits disclose through their websites. This study explored whether the depth of the organizations' online disclosures also affects these donations. In line with existing studies on regression‐based economic models of giving, this study considered community foundations—focusing on the United Kingdom and Italy—and its results indicated that managing the depth of the information provided through financial reports can influence donors' sensitivity and willingness to donate.