Do Charity Ratings Matter?
This paper investigates whether donor contributions to charities responds to the information incorporated in charity ratings. Using charity ratings data from 1999-2004, we find that ratings do have a significant effect on contributions received. We find that charities that have the lowest rating have 16 % less contributions as compared to charities with the highest rating. In addition we find that charities in turn react to lower ratings by increasing their fundraising expenditures. Our results suggest that ratings do have an effect in reducing the asymmetry of information that exists amongst donors and the charities.
|Date of creation:||Feb 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://business.fau.edu/economics
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fal:wpaper:08001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vadym Volosovych)The email address of this maintainer does not seem to be valid anymore. Please ask Vadym Volosovych to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.