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Charitable Giving by the Poor A Field Experiment in Kyrgyzstan

Author

Listed:
  • Adena, Maja

    (WZB Berlin)

  • Hakimov, Rustamdjan

    (University of Lausanne and WZB Berlin)

  • Huck, Steffen

    (WZB Berlin and UCL)

Abstract
In a large-scale natural field experiment, we partnered with a micro-lending company in Kyrgyzstan that asked over 180,000 of its clients for donations to social projects as a form of corporate philanthropy. In a 2x2 design, we explored two main (pre-registered) hypotheses about giving by the poor. First, based on a conjecture that poor are more price sensitive than the rich and in contrast to previous studies, we hypothesize that matching incentives induce crowding in of out- of-pocket donations. Second, we hypothesize that our population cares about their proximity to the charitable project. We find evidence in favor of the former hypothesis but not the latter. Previous studies of charitable giving focus on middle- or high-income earners in Western countries, neglecting the poor, although the lowest income groups are often shown to contribute substantial shares of their income to charitable causes. Our results challenge the evidence in the extant literature but are in line with our theoretical model. The implications for fundraising managers are that the optimal design of fundraising campaigns crucially depends on the targeted groups, and that donation matching is successful in stimulating participation in poorer populations.

Suggested Citation

  • Adena, Maja & Hakimov, Rustamdjan & Huck, Steffen, 2022. "Charitable Giving by the Poor A Field Experiment in Kyrgyzstan," Rationality and Competition Discussion Paper Series 331, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:331
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    References listed on IDEAS

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    2. Adena, Maja & Huck, Steffen, 2022. "Personalized fundraising: A field experiment on threshold matching of donations," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 1-20.

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    More about this item

    Keywords

    charitable giving; field experiments; matching donations;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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