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How close to home does charity begin?

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  • Duncan Grimson
  • Stephen Knowles
  • Philip Stahlmann-Brown

Abstract

This paper uses a field experiment to analyse the extent to which people are more inclined to support a charity focused on people or causes in their own region, compared to regions in other parts of the country. New Zealand landowners were incentivized to take part in an online survey by being told they could choose a charity from a list of four that would receive a $10 donation if they completed the survey. Importantly, the charities are based in different regions of the country. We find evidence of a significant declining radius of altruism: not only do people prefer to support charities in their own area, the further away a charity is located, the less likely people are to support it. These findings highlight the importance of geographic distance (independent of social distance) in charitable giving.

Suggested Citation

  • Duncan Grimson & Stephen Knowles & Philip Stahlmann-Brown, 2020. "How close to home does charity begin?," Applied Economics, Taylor & Francis Journals, vol. 52(34), pages 3700-3708, July.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3700-3708
    DOI: 10.1080/00036846.2020.1720906
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    References listed on IDEAS

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    1. Kristy Jones, 2017. "Paternalism and Ethnicity in Giving," The Economic Record, The Economic Society of Australia, vol. 93(302), pages 420-433, September.
    2. Anthony B. Atkinson & Peter G. Backus & John Micklewright & Cathy Pharoah & Sylke V. Schnepf, 2012. "Charitable giving for overseas development: UK trends over a quarter century," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 175(1), pages 167-190, January.
    3. Herzenstein, Michal & Posavac, Steven S., 2019. "When charity begins at home: How personal financial scarcity drives preference for donating locally at the expense of global concerns," Journal of Economic Psychology, Elsevier, vol. 73(C), pages 123-135.
    4. Laura Marie Schons & John Cadogan & Roumpini Tsakona, 2017. "Should Charity Begin at Home? An Empirical Investigation of Consumers’ Responses to Companies’ Varying Geographic Allocations of Donation Budgets," Journal of Business Ethics, Springer, vol. 144(3), pages 559-576, September.
    5. Philip Brown & Simon Roper, 2017. "Innovation and networks in New Zealand farming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), pages 422-442, July.
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    Cited by:

    1. Maja Adena & Julian Harke, 2022. "COVID-19 and pro-sociality: How do donors respond to local pandemic severity, increased salience, and media coverage?," Experimental Economics, Springer;Economic Science Association, vol. 25(3), pages 824-844, June.
    2. Adena, Maja & Hakimov, Rustamdjan & Huck, Steffen, 2020. "Charitable giving by the poor: A field experiment in Kyrgyzstan," Discussion Papers, Research Unit: Economics of Change SP II 2019-305r, WZB Berlin Social Science Center, revised 2020.

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