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Charitable Giving and Intermediation

Author

Listed:
  • Nadine Chlaß
  • Lata Gangadharan
  • Kristy Jones

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. Overall, donors give less when an intermediary is introduced, a decision which can only be partly explained by donors’ beliefs about the price of charitable output. However, this overall result can be attributed to only 41 per-cent of all donors. 59 per-cent of all donors in fact give as much or more with than without intermediation. Responses to intermediation can be explained by characteristics of donors’ moral judgment.

Suggested Citation

  • Nadine Chlaß & Lata Gangadharan & Kristy Jones, 2015. "Charitable Giving and Intermediation," Monash Economics Working Papers 18-15, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2015-18
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    References listed on IDEAS

    as
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    Cited by:

    1. Bittschi, Benjamin & Borgloh, Sarah & Wigger, Berthold U., 2016. "Philanthropy in a secular society," ZEW Discussion Papers 16-021, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Luigi Butera & Daniel Houser, 2016. "Delegating Altruism: Toward an Understanding of Agency in Charitable Giving," Working Papers 1060, George Mason University, Interdisciplinary Center for Economic Science.
    3. Adena, Maja & Alizade, Jeyhun & Bohner, Frauke & Harke, Julian & Mesters, Fabio, 2018. "Quality certifications for nonprofits, charitable giving, and donor's trust: experimental evidence," Discussion Papers, Research Unit: Economics of Change SP II 2017-302r, Social Science Research Center Berlin (WZB).
    4. repec:eee:soceco:v:72:y:2018:i:c:p:40-50 is not listed on IDEAS

    More about this item

    Keywords

    charitable giving; altruism; intermediation; charitable institutions; price elasticity; moral judgment reasoning;

    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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