Does the introduction of ratings reduce giving? Evidence from charities.
The largest charity‐ratings organization evaluates thousands of charities with combined annual donations of $100 billion. Because charities' initial rating occurs at different times, in random order, I can estimate how the introduction of the ratings affects giving. Donations decrease by 5%–9%, on a...
| Publicado en: | Economic Inquiry Vol. 59; no. 3; pp. 978 - 996 |
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| Formato: | Artículo |
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Wiley-Blackwell
Jul2021
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=150539864&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 150539864 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Jul2021 vid: 59 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 150539864 10.1111/ecin.12920 ppf: 978 ppct: 18 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 1.7MB tig: atl: Does the introduction of ratings reduce giving? Evidence from charities. aug: au: Grant, Laura E. affil: Robert Day School of Economics & Finance, Claremont McKenna College, Claremont California, USA su: Charities Evidence Charitable giving sug: subj: Charities Other Grantmaking and Giving Services Evidence Charitable giving keyword: charity donations information nonprofits private provision public goods ratings charity donations information nonprofits private provision public goods ratings ab: The largest charity‐ratings organization evaluates thousands of charities with combined annual donations of $100 billion. Because charities' initial rating occurs at different times, in random order, I can estimate how the introduction of the ratings affects giving. Donations decrease by 5%–9%, on average. The pattern is intuitive: Donations to highest‐rated (4‐star) charities are stable. Yet for each consecutive star lower, donations decrease, with 1‐star charities losing 12%–14%. I also impute each charity's ratings for years before being rated determine the effect of prior information. Annual losses for the rated charities are approximately $2 billion. Several reasons for the losses are discussed including salience of information, donor expectations, and charity visibility. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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