Are Donors Sensitive to the Price of Giving? A Meta-Analytical Assessment

Abstract

How the price of giving affects charitable donations has been subject to extensive scrutiny in the literature, but the empirical evidence so far has been inconsistent. We conduct a meta-analysis to synthesize the empirical findings on the price-donation relationship, estimate a generalized effect and explore underlying moderators. After combining 386 effect sizes from 52 existing studies, we find that the price of giving generally has a significant, negative association with the level of charitable donations. Further meta-regression analysis suggests that this price effect on charitable donations is moderated by donor type and data year. Overall, donors are sensitive to the price of giving, and the price effect varies under certain circumstances.