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Charitable giving and intermediation

Author

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  • Nadine Chlaß

    (Department of Economics, University of Turku, Finland and University of Jena, Germany)

  • Lata Gangadharan

    (Department of Economics, Monash University, Melbourne, Australia)

  • Kristy Jones

    (Department of Economics, Monash University, Melbourne, Australia)

Abstract

Charitable donations are often made through intermediaries who can fund themselves from these same donations. Donors who purchase charitable output through an intermediary incur a principal-agent problem with unobservable prices. We compare charitable giving in an experiment with and without intermediation. Different donor types emerge: 41 per-cent of all donors reduce their donation in response to intermediation, 59 per-cent of all donors give as much or more with than without intermediation. The price of charitable output does not explain these types and appears to only matter after taking characteristics of donors' moral judgement into account.

Suggested Citation

  • Nadine Chlaß & Lata Gangadharan & Kristy Jones, 2015. "Charitable giving and intermediation," Jena Economic Research Papers 2015-021, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2015-021
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    8. Luca Corazzini & Christopher Cotton & Tommaso Reggiani, 2020. "Delegation and coordination with multiple threshold public goods: experimental evidence," Experimental Economics, Springer;Economic Science Association, vol. 23(4), pages 1030-1068, December.
    9. Diya Elizabeth Abraham & Luca Corazzini & Miloš Fišar & Tommaso Reggiani, 2021. "Delegation and Overhead Aversion with Multiple Threshold Public Goods," MUNI ECON Working Papers 2021-14, Masaryk University.
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    More about this item

    Keywords

    charitable giving; altruism; intermediation; charitable institutions; price elasticity; moral judgement reasoning;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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