1. Testing Mechanisms in Charitable giving René Bekkers Center for Philanthropic Studies VU University Amsterdam 3-4 November 2014Behavioral Economics and Philanthropy Conference 1

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3. Why do people give? People give more (often) when 1.There is a clear needneed 2.They are being askedsolicitation 3.Costs are lower, and benefits are highercosts/benefits 4.They care about the recipients altruism 5.They receive social benefitsreputation 6.They receive psychological benefitsself-rewards 7.The cause matches their values values 8.Donations are perceived to be efficientefficacy Source: Bekkers, R. & Wiepking, P. (2011). ‘A Literature Review of Empirical Studies of Philanthropy: Eight Mechanisms that Drive Charitable Giving’. Nonprofit and Voluntary Sector Quarterly, 40(5): 924-973. Available at www.understandingphilanthropy.comwww.understandingphilanthropy.com 3-4 November 2014Behavioral Economics and Philanthropy Conference 3

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5. These did not work. Picture recipients on fundraising letters (-€40k). Calling alumni by current fraternity members. Reminding people of an event that made them feel grateful. Reminding people of an event that made them feel happy. Giving people more positive social information. Giving students the names of charity ambassadors. 3-4 November 2014Behavioral Economics and Philanthropy Conference 5

6. Published - Unpublished Picture recipients on fundraising letters (-€40k). Calling alumni by current fraternity members. Reminding people of an event that made them feel grateful. Reminding people of an event that made them feel happy. Giving people more positive social information. Giving students the names of charity ambassadors. 3-4 November 2014Behavioral Economics and Philanthropy Conference 6

7. These did not work either. Reducing the anonymity of donations. Giving the option of forfeiting anonymity. Switching the default from ‘giving’ to ‘keeping’. Telling people they are a helpful person. Telling people the government lowered its subsidy, increasing the need for donations. Showing students stylized eyespots. 3-4 November 2014Behavioral Economics and Philanthropy Conference 7

8. 8 But real watching eyes…. 3-4 November 2014Behavioral Economics and Philanthropy Conference

9. 3-4 November 20149 Suggesting a €35 contribution Behavioral Economics and Philanthropy Conference

10. Framing price reductions as matches vs. rebates 3-4 November 2014Behavioral Economics and Philanthropy Conference 10

11. Framing price reductions as matches vs. rebates 3-4 November 2014Behavioral Economics and Philanthropy Conference 11

12. Future Experiments 1.Giving with Moral Care 2.Crowdfunding Innovation Narratives 3.Global Solidarity Experiment 3-4 November 2014Behavioral Economics and Philanthropy Conference 12

13. 1. Giving with moral care The moral principle of care as a trait is strongly predictive of generosity, particularly towards people in need. Can a manipulation of the state of moral care increase giving? Does it work through warm glow (duty?) and / or altruism? Randomizing care through induction, a writing task or semantic priming. 3-4 November 2014Behavioral Economics and Philanthropy Conference 13

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16. 2. Crowdfunding Innovation An untapped potential of wealth remains uninvested in social and technological innovations serving the public good. How do prosocial impact and innovation narratives affect venture philanthropy? Randomizing prices and matching grants for training and workshops to estimate long term impact. 3-4 November 2014Behavioral Economics and Philanthropy Conference 16

17. 3. Global Solidarity Experiment How prosocial are choices in online social dilemma games across nations? Pairing individuals with other participants and charities as recipients. Manipulate social distance and similarity of gender, nation, race, religion of recipients. Provide social information: actual choices of other participants. 3-4 November 2014Behavioral Economics and Philanthropy Conference 17