Abstract
In 2010, Oxfam found itself embroiled in a sexual exploitation scandal duringthe Haiti earthquake relief effort. This is just one of many historical examples of
charities spending voluntary contributions contrary to the expectations of donors. Unlike private consumption goods, donors find it difficult to ascertain the quality of the charitable good they are purchasing since they are seldom the beneficiary of said charity’s work. Combined, these two observations have led to increased demands for more transparency regarding charities’ expenditures.
Primarily, this research seeks to clarify whether presenting financial information
affects both the propensity to donate and the size of donations solicited. The
financial information presented in this research splits a charity’s spending into two categories; expenditure that directly benefits the charity’s cause, and expenditure that indirectly furthers the charity’s cause. Therefore, this study additionally investigates whether the framing of the financial information plays a role in determining donation behaviour, as well as examining the effects of financial information across numerous charities with varying expenditure profiles.
Adopting a between-subject experimental design, donation behaviour is observed via an adapted dictator game administered via an online survey through Prolific. This thesis finds that financial information is only a significant determinant of donation behaviour when a negative frame is adopted and the magnitude of the expenditure ratio falls within certain values.
Subsequently, should charities wish to become increasingly transparent and
present such financial information, they should be wary of two factors; the magnitude of any ratio adopted to convey financial information, and the frame adopted to present said information.
| Date of Award | May 2024 |
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| Original language | English |
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