'Setting a Price' for Charitable Giving Increases Donations
Posted: 25 Feb 2015 Last revised: 6 Oct 2017
Date Written: August 2, 2016
Many people give to charity, but they typically give small amounts. This suggests that the psychological benefit of giving is derived more from whether someone donates than from how much they donate. Based on this insight, we propose a new method for increasing charitable donations: set a price for giving. If donors’ choice is limited to giving nothing or an amount substantially larger than what they would have given, many may still choose to give. In four online experiments (N=4931) and a large field experiment (N=3248), we provide evidence that setting a price for charitable giving increases the amount raised.
Keywords: charitable giving, altruism, donations, self-concept maintenance, price setting
JEL Classification: H41, L31
Suggested Citation: Suggested Citation