Donations to US based NGOs in International Development Cooperation: How (Un-)Informed Are Private Donors?
AbstractApart from scaling up foreign aid by NGOs, informed choices of private donors could also encourage an efficient and targeted use of NGO funds in international development cooperation. We assess the determinants of private donations across a large sample of US based NGOs with foreign aid activities. OLS and 2SLS estimations indicate that donors hardly make use of publicly available information on NGO characteristics, notably the “price of giving” and the degree of specialization, when deciding on donations. They rather rely on the frequently offered option to designate donations to preferred purposes – even though this behavior would be rational only under conditions that are unlikely to hold.
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Bibliographic InfoPaper provided by Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 72.
Date of creation: 14 Feb 2011
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non-governmental organizations; specialization; private donations; informed choices; price of giving; option to designate;
Other versions of this item:
- Peter Nunnenkamp & Hannes Öhler, 2011. "Donations to US Based NGOs in International Development Cooperation: How (Un-)Informed Are Private Donors?," Kiel Working Papers 1680, Kiel Institute for the World Economy.
- Nunnenkamp, Peter & Öhler, Hannes, 2010. "Donations to US based NGOs in international development cooperation: How (un-)informed are private donors?," Center for European, Governance and Economic Development Research Discussion Papers 117, University of Goettingen, Department of Economics.
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- F35 - International Economics - - International Finance - - - Foreign Aid
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
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