The many obstacles to effective giving

Lucius Caviola, Stefan Schubert and Jason Nemirow

Judgment and Decision Making, 2020, vol. 15, issue 2, 159-172

Abstract: When people donate, they rarely give to the charities that do the most good per dollar. Why is this? One possibility is that they do not know how to give effectively. Another possibility is that they are not motivated to do so. Across six tasks (Studies 1a, 1b), we found support for both explanations. Among lay donors, we observed multiple misconceptions—regarding disaster relief, overhead costs, donation splitting, and the relative effectiveness of local and foreign charities—that reduced the effectiveness of their giving. Similarly, we found that they were unfamiliar with the most effective charities (Studies 2a, 2b). Debunking these misconceptions and informing people about effectiveness boosted effective donations; however, a portion of lay donors continued to give ineffectively to satisfy their personal preferences. By contrast, a sample of self-identified effective altruists gave effectively across all tasks. They exhibited none of the misconceptions that we observed among lay donors and overwhelmingly favored the most effective option in their choice set (Study 3). Taken together, our studies imply that donors need to be both informed and motivated to give effectively on a consistent basis.

Date: 2020
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