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Charitable giving expenditures and the faith factor.

Vince E Showers¹, Linda S Showers, Jeri M Beggs

¹Bradley University.

American Journal of Economics and Sociology

|February 18, 2011

Summary

This study reveals religious giving is a necessity, unlike other donations considered luxuries. Religious donors also contribute more to charity and education, suggesting intrinsic motivations for giving.

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Area of Science:

Economics
Sociology
Philanthropic Studies

Background:

Understanding household charitable giving is crucial for policy and non-profit strategy.
Previous models often overlook the distinct nature of religious giving.
The permanent income hypothesis provides a framework for analyzing consumption and saving behavior, applicable to charitable donations.

Observation:

A double hurdle model analyzed the impact of household income and characteristics on giving likelihood and levels.
Data encompassed donations to religion, charity, education, others, and politics.
An income-giving status interaction effect was incorporated to refine the analysis.

Findings:

Household income significantly influences the likelihood and amount of donations across categories.
Religious giving is consistently treated as a necessity good, irrespective of income level.
Other forms of giving (charity, education, politics) are generally considered luxury goods.
Individuals donating to religion also tend to donate more to education and charity.
Higher education levels correlate with a greater propensity to donate to religion.

Implications:

Religious giving may be driven by internal, enduring motivations rather than transactional benefits.
Findings challenge prior assumptions about religious giving behavior and its drivers.
Further research into the intrinsic motivations behind religious donations is warranted.
Results can inform targeted fundraising strategies and public policy related to charitable giving.