do donors raise their donation when they are aware of decreasing government subsidies?
TRANSCRIPT
Do donors raise their donations when they are aware of decreasing government subsidies?
A survey experiment
Arjen de Wit & René Bekkers7th ERNOP Conference
July 9, 2015, Paris, France
In a perfectly altruistic world...
Do people value certain public goods in society Do people see where others spend their money
on Do people donate to public goods that are not
funded by others
However...
However...
People often do not know how much subsidies an organisation receives
And if they know, they do not change their donations
(Horne et al. 2005)
Previous findings
Laboratory experiments typically find partial crowding-out
But findings with administrative or survey data are inconclusive
(De Wit & Bekkers 2013)
The current project
What if people know about actual subsidy change?
The current project
What if people know about actual subsidy change?
Survey experiment Giving in the Netherlands Panel Survey 2014 CAWI N = 1,271
Experimental design
After filling out the survey, respondents get a reward in points
They can spend their reward (partly) on a personal voucher or (partly) on a charitable organisation
Experimental design
No information: 'The Dutch charities are in need of your support.'
Information: 'The Dutch charities are in need of your support. KWF
Kankerbestrijding, for example, received € 361,000 on government subsidies in 2011 but received no subsidies in 2012.'
Experimental design
No information: 'The Dutch charities are in need of your support.'
Information: 'The Dutch charities are in need of your support. KWF
Kankerbestrijding, for example, received € 361,000 on government subsidies in 2011 but received no subsidies in 2012.'
Manipulation check: 'What do you think, did KWF Kankerbestrijding receive more,
an equal amount of, or less government susbidies in 2012 compared with 2011?'
Providing information on cuts does not substantially increase number of donors
No information Information0
2
4
6
8
10
12
14
AverageBelieves that subsidy has decreasedBelieves that subsidy has increased or has not changed
%
Providing information on cuts does not substantially increase number of donors
No information Information0
2
4
6
8
10
12
14
AverageBelieves that subsidy has decreasedBelieves that subsidy has increased or has not changed
%
...nor does it increase the number of points donated
No information Information0
5
10
15
20
25
AverageBelieves that subsidy has decreasedBelieves that subsidy has increased or has not changed
Poin
ts
...nor does it increase the number of points donated
No information Information0
5
10
15
20
25
AverageBelieves that subsidy has decreasedBelieves that subsidy has increased or has not changed
Poin
ts
*
*
or does it?
Who would be more sensitive to information?
People who are more committed to the public good
In this case, people who are KWF donors
Effect not stronger among KWF donors
No information Information0
2
4
6
8
10
12
Non-donorsDonors%
Effect not stronger among KWF donors
No information Information0
2
4
6
8
10
12
14
16
18
Non-donorsDonors
Poin
ts
What if...
After decision and manipulation check:'Imagine that you would have heard that KWF
Kankerbestrijding had received [less/an equal amount of/more] subsidies in 2012 than in 2011. What would you have done with your reward?'
Some people who did not receive information earlier may start donating...
Imagine: decreaseImagine: no change/increase
0
2
4
6
8
10
12
14
Actual decisionHypothetical decision%
...but no difference in points donated
Imagine: decreaseImagine: no change/increase
0
2
4
6
8
10
12
14
16
Actual decisionHypothetical decision
Poin
ts
Three innovations
Role of information tested in novel research design
Tested among different groups (donors vs. non-donors) in survey experiment
Actual and hypothetical decision
Summing up
When provided with information about subsidy decrease, people do not donate (more)
Effect not stronger among donors No different effect for hypothetical situations of
changing government subsidies
Summing up
When provided with information about subsidy decrease, people do not donate (more)
Effect not stronger among donors No different effect for hypothetical situations of
changing government subsidies Important null findings
What about the altruistic world?
Even if people know about a change in government funding they are reluctant to change donations
Previous beliefs and preferences seem to matter more than new information
Thank you
Arjen de WitRené Bekkers
Center for Philanthropic StudiesVU University Amsterdam