Citation

Discussion Paper Details

Please find the details for DP9749 in an easy to copy and paste format below:

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Title: Impure Prosocial Motivation in Charity Provision: Warm-Glow Charities and Implications for Public Funding

Author(s): Kimberley Scharf

Publication Date: November 2013

Keyword(s): Competition in the Nonprofit Sector, Private Provision of Public Goods, Tax Incentives for Giving and Warm Glow

Programme Area(s): Public Economics

Abstract: We show that warm-glow motives in provision by competing suppliers can lead to inefficient charity selection. In these situations, discretionary donor choices can promote efficient charity selection even when provision outcomes are non-verifiable. Government funding arrangements, on the other hand, face verification constraints that make them less flexible relative to private donations. Switching from direct grants to government subsidies for private donations can thus produce a positive pro-competitive effect on charity selection, raising the value of charity provision per dollar of funding.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9749

Bibliographic Reference

Scharf, K. 2013. 'Impure Prosocial Motivation in Charity Provision: Warm-Glow Charities and Implications for Public Funding'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9749