New experimental evidence on charitable gift restrictions and donor behaviour

Sep 18, 2013

In this article, Sara Helms, Brian Scott and Jeremy Thornton report new results for an economic experiment on charitable gift restrictions and donor behaviour. The authors demonstrate that offering the option to limit a charitable gift increases the average gift size for donors who choose to restrict their gift and for those who do not. These results suggest that restricted gifts are an important tool for increasing donations and may be less costly to the nonprofit organization than originally believed.

Gift restrictions are a common tool used by donors to ensure charitable intent. Due to monitoring costs and the loss of ?exibility, gift restrictions are increasingly expensive for recipient non-profit organizations. Using an economic experiment, Helms, Scott and Thornton studied the impact of offering donors the option to restrict their charitable gift. Their primary ?nding demonstrates that allowing the option to restrict a charitable gift increases the average gift size, whether or not the chooses to exercise that option.

This result implies that restricted gifts are an important way of increasing and additionally may be less costly to the non-pro?t organizations than originally believed. Further, high levels of religious attendance are associated with an increased use of gift restrictions and an increased to those restrictions.

Explore further: New poll reveals what Americans fear most

More information: Helms, S., Scott, B. and Thornton, J. New experimental evidence on charitable gift restrictions and donor behaviour, Applied Economics Letters, Volume 20, Issue 17, 2013. DOI: 10.1080/13504851.2013.829172

add to favorites email to friend print save as pdf

Related Stories

The Thought Is What Counts

Dec 22, 2009

Holiday gift givers who expect to be appreciated for choosing the most expensive gifts are likely to be disappointed when their presents are unwrapped. Cost has little impact on how much we value the gifts we receive, according ...

Recommended for you

New poll reveals what Americans fear most

16 hours ago

Chapman University has initiated the first comprehensive nationwide study on what strikes fear in Americans in the first of what is a planned annual study. According to the Chapman poll, the number one fear in America today ...

Study shows how texas campus police tackle stalking

17 hours ago

One out of every five female students experience stalking victimization during their college career, but many of those cases are not reported to police, according to a study by the Crime Victims' Institute ...

How large-scale technology projects affect knowledge

20 hours ago

What do an accelerator complex at Cern, a manufacturing center in 19th century Philadelphia and lotus cultivation during the Qing dynasty all have in common? All such activities generate knowledge and know-how. ...

User comments : 0