Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Boston
Working Papers
How low can you go? Charity reporting when donations signal income and generosity
Anat Bracha
Lise Vesterlund
Abstract

Consistent with nonprofit fundraising practices, donation visibility has been shown to increase giving. While concern for status is used to explain this response, the authors argue that this explanation relies on the assumption that giving signals only income or generosity. When giving signals both attributes overall status need not increase in donations, and donation-visibility may be harmful when individuals prefer to be perceived as poor-and-generous rather than rich-and-stingy. Using an experiment the authors find that both income-status and generosity-status concerns affect behavior. Furthermore, donation-visibility fails to increase contributions as low-income individuals select low donation amounts that are unlikely to be attributed to high-income individuals.


Download Full text
Cite this item
Anat Bracha & Lise Vesterlund, How low can you go? Charity reporting when donations signal income and generosity, Federal Reserve Bank of Boston, Working Papers 13-11, 18 Oct 2013.
More from this series
JEL Classification:
Subject headings:
Keywords: charitable donations; lab experiments; status; crowding out
For corrections, contact Catherine Spozio ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal