Compose a 3000 words essay on Economics of Charitable Giving. Needs to be plagiarism free!
People don’t care who the charity receives its money from, and are primarily basing their donation amount on how much they perceive they must give to help the charity achieve its pre-defined goals. One might assume that proponents of this theory would point to a large number of charity drives with set goals. ‘Let’s raise $5,000 to help end world hunger’ – or similar formulations. Certainly, the $5,000 will not end world hunger, but for perfect altruism, it gives donors a goal to achieve, subsequently increasing motivation for giving. There seem to be two other competing mainstream theories for giving – ‘Prestige’ and ‘Warm Glow’. One could probably surmise what these theories underlining assumptions: prestige theory holds that gives donate to charities for the public perception of goodness and upper-class panache it contains. whereas warm glow theory argues that people give to charities for the internal feeling of goodness and meaning they gain from giving to charity.
In my personal life, the times I have given to charity have been out of a combination of prestige and a warm glow. I believe there is a sense of political commitment that comes from the charitable giving I have done. Giving is also a way of identifying with that particular organization. If you give to Green-Peace you are sort of an honorary member is sensed.
This entry looks at some of the techniques used to persuade donors by large charity organizations and offers a personal example of the situation. It argues that there is a multitude of techniques used to persuade donors, and the techniques are co-opted largely from the business world.
“Investing in modern marketing techniques (2009)” argues that one of the seminal works in charity persuasion was Philip Kotler’s marketing for non-profits.