Disaggregating the Effects of Inequality on Informal Giving: Evidence From Pakistan

In this article, we outline the determinants of informal charitable giving and the link between giving and inequality. Arguing that inequality encompasses at least two competing effects—distrust and observed need for donations—we use a novel proxy to separate out the effect of the latter from the former on household’s magnitude of informal giving. Using data from the Pakistan Centre for Philanthropy’s 2014 Indigenous Individual Philanthropy Survey, we find that informal giving in Pakistan follows patterns like those observed in the literature for formal giving. We also find evidence for a positive relationship between observed need and the magnitude of person-to-person giving. Controlling for observed need, we find that the residual correlation between inequality and giving is negative, one explanation of which may be the positive link between inequality and decreased social cohesion and trust.

Celebrity Endorsements and Donations: Empirical Investigation of Impact on Philanthropic Giving

This study investigates the effects of celebrity endorsers on donations and views of nonprofits. Celebrity endorsers and their relationships with nonprofits evoke a series of emotions that greatly affect how people perceive and donate to nonprofit organizations. Past research demonstrates the tremendous growth in individual philanthropy and the importance of celebrities as influencers on social media. Data was obtained from a random sample of 277 individuals and subjected to statistical analyses. By studying two different celebrities that come from a different race, gender, and background, we found that our findings and significance values changed depending on which celebrity was tested. Our findings indicated that ads that evoke positive emotions are more likely to convert to donations. Demographic characteristics, such as age, gender, and income also affect donations. In some cases, the nonprofit’s cause and advertising message were powerful enough to override the impact of the celebrity. Our findings can help marketers style their ads to evoke certain emotions, by using celebrity endorsers that will help them increase donations. Furthermore, understanding what drives donors will help nonprofits tailor marketing strategies. It is expected that by targeting their donor base effectively, non-profits will then witness an increase in donations.