Finding the Next Major Donor: The Relationship between Financial Planning Horizon and Charitable Giving

18 Pages Posted: 6 Nov 2019 Last revised: 6 Feb 2022

See all articles by Zhikun Liu

Zhikun Liu

Employee Benefit Research Institute

Russell N. James

Texas Tech University

Abbas Aboohamidi

Texas Tech University

Date Written: July 12, 2018

Abstract

Previous research has studied the characteristics associated with the presence and amount of charitable giving. However, few of these studies have explored the relationship between financial planning horizon and philanthropic donations, especially large donations. Using cross-sectional and longitudinal analysis of the Health and Retirement Study data, this paper explores the factors associated with charitable giving over time with a particular focus on financial planning horizon. This paper concludes that American adults who have longer financial planning horizons are more likely to make charitable donations compared to those whose planning horizon is short, i.e., less than six months. Among donors, major gifts are associated with long-term financial planning horizon, wealth, religious activity frequency, volunteer experience, and education.

Keywords: Charitable Planning, Financial Planning Horizon, Behavioral Finance, Financial Decision Making

JEL Classification: D12, G02, D31, D64

Suggested Citation

Liu, Zhikun and James, Russell N. and Aboohamidi, Abbas, Finding the Next Major Donor: The Relationship between Financial Planning Horizon and Charitable Giving (July 12, 2018). Liu, Zhikun,PhD., C.F.P., James, Russell, III, PhD,J.D., C.F.P., & Aboohamidi, A., PhD. (2020). Finding the next major donor: The relationship between financial planning horizon and charitable giving. Journal of Personal Finance, 19(2), 49-65. Retrieved from https://www.proquest.com/scholarly-journa, Available at SSRN: https://ssrn.com/abstract=3213057 or http://dx.doi.org/10.2139/ssrn.3213057

Zhikun Liu (Contact Author)

Employee Benefit Research Institute ( email )

1100 13th Street, NW
Suite 878
Washington, DC 20005-4204
United States

Russell N. James

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

Abbas Aboohamidi

Texas Tech University ( email )

Box 42132
Lubbock, TX 79409-2132
United States
8069283746 (Phone)

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