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The Role of Information in Charitable Giving: An Experiment
Bryan K Church, Georgia Institute of Technology
Linda M Parsons, University of Alabama
ABSTRACT: We use a dictator game to determine whether donors use performance information, the type of quantitative data that is typically produced by accountants to report results, when making a donation decision. We find that donations are higher when donors have performance information available to them, without any other information about the organization’s beneficiaries and their needs. Performance information is effective at increasing donations whether the reported performance substantially exceeds recommended benchmarks or just meets the guidelines provided by the Better Business Bureau.
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