do donors raise their donations when they are aware of decreasing government support? a survey...
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Do donors raise their donations when they are aware of decreasing government subsidies?
A survey experiment
Arjen de Wit & René BekkersPhilanthropic Studies, VU Amsterdam
44th ARNOVA Annual Conference, Chicago, IL, USA, November 19, 2015
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In a theory of purely altruistic motivation for charitable giving...
…people value certain public goods in society… …see where others spend their money on… and respond to needs: they donate to public
goods that are not yet funded by others.
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However...
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pure
altr
uism
What participants in economic experiments do: -.64
What donors to actual nonprofit organizations do: +.06
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It may be...
That people outside the lab simply do not know how much subsidies an organization receives, and whether this increased or decreased;
Or that they simply do not change their donations even if they know how subsidies changed.
(Horne et al. 2005)
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The current project
What if people knew about actual subsidy cuts? Let’s tell them. In a survey experiment. And then see what they think (believe) and what
they do.
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The data
Giving in the Netherlands Panel Survey 2014, random and High Net Worth (HNW) sample.
Respondents in the random sample are from a pool of people who registered for participating in surveys; HNW sample is invited through postal mail
N=2,458; response rates: 80% / 12% (HNW)
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Experimental design (1)
After filling out the survey, respondents receive a reward in the form of token points.
The number of points depends on the time it took them to complete the questionnaire.
Average earnings worth € 3,23.
Token points can be exchanged for vouchers, Air Miles or donations to one out of four preselected charitable organizations
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Experimental design (2)
Charity: KWF Kankerbestrijding, Dutch Cancer Society
Funds cancer research and helps cancer patients
One of the most popular fundraising organizations in the Netherlands
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Experimental design (3)
Base line appeal:'The Dutch charities are in need of your support.‘
+ Information on lost subsidies: 'The Dutch charities are in need of your support. KWF
Kankerbestrijding for example received € 361,000 on government subsidies in 2011 but received no subsidies in 2012.'
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Manipulation check: beliefs
Perceived subsidy change: 'What do you think, did KWF Kankerbestrijding receive more,
an equal amount of, or less government subsidies in 2012 compared with 2011?‘
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Scenario question
After the participants made their choices, we asked them the following hypothetical question:'Imagine that you would have heard that KWF
Kankerbestrijding received [more/an equal amount of/less] government subsidies in 2012 compared with 2011, what would you have done with your reward?'
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People who believe subsidies decreased are more likely to donate
No information Information0%
2%
4%
6%
8%
10%
12%
14%
16%
Thinks subsidy increased or did not changeThinks subsidy decreasedTotal
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Providing information further increases the number of donors
No information Information0%
2%
4%
6%
8%
10%
12%
14%
16%
Thinks subsidy increased or did not changeThinks subsidy decreasedTotal
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No significant differences for amount donated
No information Information0
0.5
1
1.5
2
2.5
3
Thinks subsidy increased or did not changeThinks subsidy decreasedTotal
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Moderators of the information effect
No information Information
RegularHNW
No information
Non-donorsDonors
No information Information
Low ECHigh EC
No information Information
Low POCHigh POC
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Most people do not change their giving with different information
Stopped donating
Did not change decision
Started donating
Control group first, then in scenario: “Imagine that subsidies decreased”
0 96.9 3.1
Information first, then in scenario: “Imagine that subsidies increased / did not change”
1.8 97.2 1.0
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Most people do not change their giving with different information
Stopped donating
Did not change decision
Started donating
Control group first, then in scenario: “Imagine that subsidies decreased”
0 96.9 3.1
Information first, then in scenario: “Imagine that subsidies increased / did not change”
1.8 97.2 1.0
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Conclusions
People who are aware of subsidy cuts are more likely to donate
Providing information about subsidy cuts increases share of donors from 9% to 11%, that is a relative increase of 22%
Awareness of need is important in explaining people's reactions to government policies
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Conclusions
People who are aware of subsidy cuts are more likely to donate
Providing information about subsidy cuts increases share of donors from 9% to 11%, that is a relative increase of 22%
Awareness of need is important in explaining people's reactions to government policies