Charitable Giving and Intermediation

Nadine Chlaß, Lata Gangadharan () and Kristy Jones
Authors registered in the RePEc Author Service: Nadine Chlaß

No 18-15, Monash Economics Working Papers from Monash University, Department of Economics

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.

Keywords: charitable giving; altruism; intermediation; charitable institutions, price elasticity; moral judgment reasoning (search for similar items in EconPapers)
JEL-codes: C91 D64 L31 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2015-02
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Working Paper: Charitable giving and intermediation (2015)
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