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How do big gifts affect rival charities and their donors?

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  • Mayo, Jennifer

Abstract

This paper examines the effect of big gifts on rival charities. Using novel information on big gifts, I find evidence of positive spillovers on donations and charitable activities for charities that are “close” to the recipient of a big gift, but negative spillovers on organizations that are viewed as substitutes. Positive spillovers are strongest for smaller gifts and smaller charities, suggesting that charities are first to react when they are less visible to donors.

Suggested Citation

  • Mayo, Jennifer, 2021. "How do big gifts affect rival charities and their donors?," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 575-597.
    • Handle: RePEc:eee:jeborg:v:191:y:2021:i:c:p:575-597
    DOI: 10.1016/j.jebo.2021.09.009
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