Giving Days May Favor Big-Name Nonprofit Groups

The Theory

Nonprofits have flocked to participate in Giving Tuesday over the past several years, hoping to take part in the momentum of the annual philanthropy event. But not all charities are rewarded, according to a University of Memphis researcher. When donors are given a list of groups participating in a giving day, they don’t always investigate a nonprofit’s work, she says. With so many groups to choose from, donors often gravitate to popular nonprofits and overlook lesser-known charities.

The Test

In an online experiment, Danielle Vance-McMullen presented 12 charities to 700 participants who were told to donate to the nonprofits of their choice. Half of the charities were presented simultaneously in a list meant to look like a giving-day menu. The other half were offered one by one to mimic solicitations that roll in at the end of the year.

The Results

There wasn’t a big difference in how much people gave over all. However, when the donors responded to a roster of multiple charities presented at the same time, they gave to about a third fewer, with larger amounts going to each charity. In a survey after the test, donors indicated the giving-day format prompted them to make decisions based on their familiarity with the charities rather than by a description of their impact. “Name recognition is important for giving days,” Ms. Vance-McMullen says. “They benefit familiar organizations.”

Digging Deeper

Donors found the giving-day scenario less mentally taxing and more satisfying, a result that helps explain the popularity of the one-day events. But they also reported a greater awareness of their giving budget, a finding that merits further study to determine its impact on generosity, Ms. Vance-McMullen says.

Find It

“Better Together? Experimental Evidence Regarding the Impact of Simultaneous Solicitations on Charitable Giving” is a working paper by Danielle Vance-McMullen.