(Indiana University Lilly Family School of Philanthropy)

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Presentation transcript:

(Indiana University Lilly Family School of Philanthropy) Presented by Sarah Smith Kimberley Scharf (University of Bristol) (University of Warwick) Mark Ottoni-Wilhelm (Indiana University Lilly Family School of Philanthropy)

“The key problem is funding cannibalism “The key problem is funding cannibalism. That $3 million in donations doesn’t appear out of a vacuum. Because people on average are limited in how much they’re willing to donate to good causes, if someone donates $100 to the ALS Association, he or she will likely donate less to other charities.” William MacAskill (co-founder of Giving What We Can)

What did we look at? Anonymized data on donations by CAF Account holders June 2009 – July 2014 107,559 account-holders 4,475,018 donations Median = £25; Mean = £99

Summary of appeals included in research Date of appeal Location Type Total donations (DEC figures) 04/10/2009 Sumatra (Indonesia, Philippines, Vietnam) Earthquakes & Typhoons £9.3 m 14/01/2010 Haiti Earthquake £107m 03/08/2010 Pakistan Floods £71m 06/07/2011 East Africa Famine £79m 20/03/2013 Syria Effects of Civil War £27m 11/11/2013 Philippines Typhoon £95m

Weeks before/ after disaster appeal Change in total amount donated, relative to non-disaster periods Weeks before/ after disaster appeal Notes to figure: Difference in average daily (ln) donations, relative to baseline of non-disaster periods. Estimated coefficients plus confidence intervals. Regressions (estimated using OLS) include controls for trend, month, day of month, day of week, Christmas, New Year, Easter, bank holidays and major telethons.

Weeks before/ after disaster appeal Change in total amount donated, relative to non-disaster periods Weeks before/ after disaster appeal Notes to figure: Difference in average daily (ln) donations, relative to baseline of non-disaster periods. Estimated coefficients plus confidence intervals. Regressions (estimated using OLS) include controls for trend, month, day of month, day of week, Christmas, New Year, Easter, bank holidays and major telethons.

Estimated response to major telethons, by week BBC Children in Need (Nov, raises £45-50m) Comic Relief/ Sports Relief (March, raises £50-100m) Notes to figure: Difference in average daily (ln) donations, relative to baseline of non-telethon periods. Estimated coefficients plus confidence intervals. Regressions (estimated using OLS) include controls for trend, month, day of month, day of week, Christmas, New Year, Easter, bank holidays.

Big appeals do not reduce donations to other charities People are moved to give to other charities A big appeal makes giving more salient Giving in response to an appeal reduces the hassle costs of giving to other charities