Charitable giving and defaults

I was thinking more about a framework for understanding these findings by Arthur Brooks on the rates at which different groups give to charity. Some explanations are “conservatives are nicer than liberals” or “conservatives have more spare cash than liberals” or “conservatives believe in charity as an institution more than liberals.” (My favorite quote on this is “I’d give to charity, but they’d spend it all on drugs.”)

But . . . although I think there’s truth to all of the above explanations, I think some insight can be gained by looking at this another way. Lots of research shows that people are likely to take the default option (see here and here for some thoughts on the topic). The clearest examples are pension plans and organ donations, both of which show lots of variation and also show people’s decisions strongly tracking the default options.

For example, consider organ donation: over 99% of Austrians and only 12% of Gernans consent to donate their organs after death. Are Austrians so much nicer than Germans? Maybe so, but a clue is that Austria has a “presumed consent” rule (the default is to donate) and Germany has an “explicit consent” rule (the default is to not donate). Johnson and Goldstein find huge effects of the default in organ donations, and others have found such default effects elsewhere.

Implicit defaults?

My hypothesis, then, is that the groups that give more to charity, and that give more blood, have defaults that more strongly favor this giving. Such defaults are generally implicit (excepting situations such as religions that require tithing), but to the extent that the U.S. has different “subcultures,” they could be real. We actually might be able to learn more about this with our new GSS questions, where we ask people how many Democrats and Republicans they know (in addition to asking their own political preferences).

Does this explanation add anything, or am I just pushing things back from “why to people vary in how much they give” to “why is there variation in defaults”? I think something is gained, actually, partly because, to the extent the default story is true, one could perhaps increase giving by working on the defaults, rather than trying directly to make people nicer. Just as, for organ donation, it would probably be more effective to change the default rather than to try to convince people individually, based on current defaults.

5 thoughts on “Charitable giving and defaults

  1. On the Germans vs Austrians….
    At some point the collective will of the German and Austrian peoples designed these laws as they are…
    So its back to the original question. Why did Austrians design their laws to promote organ donation and the German's didn't?

  2. I would be curious to know how "giving" is affected by taking into account some noncharitable recipients.

    A person in the US who gives money to a candidate whose platform is affordable housing is not counted as giving a donation to the poor, but someone who gives money to homeless sheleters is.

    I would also be curious to know how these sorts of giving vary according to who is in power. For example, if the Republicans control government, does the giving of liberals shift more towards political donations, at the expense of charitable donations?

  3. The Liberals might say they are doing charity rather than giving to charity i.e. they are the ones serving the Christmas dinners in the homeless shelters while the Conservatives are paying for the dinners. It would be interesting to add in labour as a donation.

    It would be really interesting to see where the data presented as medians rather than means and also as proportion of income. It might paint a different picture.

    It would also be interesting to look at donations to see if there is indirect gain. Do people donate to a poor school or to a school their child goes too?

    I presume this is all from tax return data? It would be interesting to look at giving that is not recorded as taxed giving. I suspect there is lot more within family (cousins, nephews, aunts etc) giving in the Hispanic and Black communities and that wouldn't be recorded.

    In the end, Conservatives have a vested political interest in giving to charity i.e. they want to show people will give enough so that the government doesn't need too. And in converse, so do Liberals.

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