Do donors raise their donation when they are aware of decreasing government subsidies?

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