Hostname: page-component-68c7f8b79f-wfgm8 Total loading time: 0 Render date: 2026-01-01T07:21:26.334Z Has data issue: false hasContentIssue false

Does Windfall Money Encourage Charitable Giving? An Experimental Study

Published online by Cambridge University Press:  01 January 2026

Huafang Li*
Affiliation:
School of Public, Nonprofit and Health Administration, Grand Valley State University, 401 Fulton St. W, 246C DeVos Center, Grand Rapids, MI 49504, USA
Jie Liang*
Affiliation:
Shanghai University of Finance and Economics, 777 Guoding Rd., Yangpu, Shanghai 200433, China
Hui Xu*
Affiliation:
Department of Economics, Beijing Normal University, 19 XinJieKouWai St., HaiDian District, Beijing 100875, China
Yingxi Liu*
Affiliation:
Yunnan University of Finance and Economics, 237 Longquan Rd., Kunming 650211, Yunnan, China
Get access

Abstract

Recently, increasing numbers of nonprofit studies have used experiments to understand individuals’ charitable giving decisions. One significant gap between experimental settings and the real world is the way in which individuals earn the incomes that they use for charitable donations. This study examined the relationship between individuals’ income sources and their charitable giving decisions. To do so, we conducted a laboratory experiment with 188 college students and asked them to donate with windfall money or with money earned from a real task, respectively. The findings showed that participants donated more to charities if their funds derived from windfall gains. Implications for conducting experiments and motivating donors are also discussed.

Information

Type
Original Paper
Copyright
Copyright © International Society for Third-Sector Research and The Johns Hopkins University 2018

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

Abeler, J., Falk, A., Goette, L., & Huffman, D. (2011). Reference points and effort provision. American Economic Review, 101(2), 470492. doi: 10.1257/aer.101.2.470.CrossRefGoogle Scholar
Al-Ubaydli, O., List, J. A., & Suskind, D. L. (2017). What can we learn from experiments? Understanding the threats to the scalability of experimental results. American Economic Review: Papers and Proceedings, 107(5), 282286. doi: 10.1257/aer.p20171115.CrossRefGoogle Scholar
Arkes, H. R., Joyner, C. A., Pezzo, M. V., Nash, J. G., Siegel-Jacobs, K., & Stone, E. (1994). The psychology of windfall gains. Organizational Behavior and Human Decision Processes, 59(3), 331347. doi: 10.1006/obhd.1994.1063.CrossRefGoogle Scholar
Benz, M., & Meier, S. (2008). Do people behave in experiments as in the field?—Evidence from donations. Experimental Economics, 11(3), 268281. doi: 10.1007/s10683-007-9192-y.CrossRefGoogle Scholar
Camerer, C. F. (2003). Behavioral game theory: Experiments in strategic interaction. Princeton, NJ: Princeton University Press.Google Scholar
Carlsson, F., He, H., & Martinsson, P. (2013). Easy come, easy go: The role of windfall money in lab and field experiments. Experimental Economics, 16(2), 190207. doi: 10.1007/s10683-012-9326-8.CrossRefGoogle Scholar
Carpenter, J., Verhoogen, E., & Burks, S. (2005). The effect of stakes in distribution experiments. Economics Letters, 86(3), 393398. doi: 10.1016/j.econlet.2004.08.007.CrossRefGoogle Scholar
CGSS. (n.d.). Chinese general social survey—Digital chronicle of Chinese social change. Retrieved July 17, 2017, from http://www.chinagss.org/.Google Scholar
Cherry, T. L., Frykblom, P., & Shogren, J. F. (2002). Hardnose the dictator. American Economic Review, 92(4), 12181221. doi: 10.1257/00028280260344740.CrossRefGoogle Scholar
Cherry, T. L., Kroll, S., & Shogren, J. F. (2005). The impact of endowment heterogeneity and origin on public good contributions: Evidence from the lab. Journal of Economic Behavior & Organization, 57(3), 357365. doi: 10.1016/j.jebo.2003.11.010.CrossRefGoogle Scholar
Clark, J. (2002). House money effects in public goods experiments. Experimental Economics, 5(3), 223232. doi: 10.1023/A:1020832203804.CrossRefGoogle Scholar
Danková, K., & Servátka, M. (2015). The house money effect and negative reciprocity. Journal of Economic Psychology, 48, 6071. doi: 10.1016/j.joep.2015.02.007.CrossRefGoogle Scholar
Eckel, C. C., & Grossman, P. J. (1996). Altruism in anonymous dictator games. Games and Economic Behavior, 16(2), 181191. doi: 10.1006/game.1996.0081.CrossRefGoogle Scholar
Falk, A., & Heckman, J. J. (2009). Lab experiments are a major source of knowledge in the social sciences. Science, 326(5952), 535538. doi: 10.1126/science.1168244.CrossRefGoogle Scholar
Fehr, E., & List, J. A. (2004). The hidden costs and returns of incentives—Trust and trustworthiness among CEOs. Journal of the European Economic Association, 2(5), 743771. doi: 10.1162/1542476042782297.CrossRefGoogle Scholar
Fischbacher, U. (2007). Z-Tree: Zurich toolbox for ready-made economic experiments. Experimental Economics, 10(2), 171178. doi: 10.1007/s10683-006-9159-4.CrossRefGoogle Scholar
Gazley, B., & Dignam, M. (2010). The decision to give: What motivates individuals to support professional associations. Washington, DC: ASAE & the Center for Association Leadership.Google Scholar
Gneezy, U., & List, J. A. (2006). Putting behavioral economics to work: Testing for gift exchange in labor markets using field experiments. Econometrica, 74(5), 13651384. doi: 10.1111/j.1468-0262.2006.00707.x.CrossRefGoogle Scholar
Hainmueller, J., Hangartner, D., & Yamamoto, T. (2015). Validating vignette and conjoint survey experiments against real-world behavior. Proceedings of the National Academy of Sciences of the United States of America, 112(8), 23952400. doi: 10.1073/pnas.1416587112.CrossRefGoogle ScholarPubMed
Henrich, J., Boyd, R., Bowles, S., Camerer, C., Fehr, E., Gintis, H., & McElreath, R. (2001). In search of homo economicus: Behavioral experiments in 15 small-scale societies. American Economic Review, 91(2), 7384. doi: 10.1257/aer.91.2.73.CrossRefGoogle Scholar
IRS. (n.d.). SOI tax stats—individual statistical tables by size of adjusted gross income. Retrieved July 25, 2017, from https://www.irs.gov/uac/soi-tax-stats-individual-statistical-tables-by-size-of-adjusted-gross-income.Google Scholar
James, R. III (2015). The family tribute in charitable bequest giving: An experimental test of the effect of reminders on giving intentions. Nonprofit Management and Leadership, 26(1), 7389. doi: 10.1002/nml.21141.CrossRefGoogle Scholar
Janssen, M. A., Holahan, R., Lee, A., & Ostrom, E. (2010). Lab experiments for the study of social-ecological systems. Science, 328(5978), 613617. doi: 10.1126/science.1183532.CrossRefGoogle Scholar
Kim, M., Mason, D. P., & Li, H. (2017). Experimental research for nonprofit management: Charitable giving and fundraising. In James, O., Jilke, S., & Van Ryzin, G. G. (Eds.), Experiments in public management research: Challenges & contributions (pp. 415436). Cambridge: Cambridge University Press. doi: 10.1017/9781316676912.021.CrossRefGoogle Scholar
Kim, M., & Van Ryzin, G. G. (2014). Impact of government funding on donations to arts organizations: A survey experiment. Nonprofit and Voluntary Sector Quarterly, 43(5), 910925. doi: 10.1177/0899764013487800.CrossRefGoogle Scholar
Konow, J. (2010). Mixed feelings: Theories of and evidence on giving. Journal of Public Economics, 94(3–4), 279297. doi: 10.1016/j.jpubeco.2009.11.008.CrossRefGoogle Scholar
Kroll, S., Cherry, T. L., & Shogren, J. F. (2007). The impact of endowment heterogeneity and origin on contributions in best-shot public good games. Experimental Economics, 10(4), 411428. doi: 10.1007/s10683-006-9144-y.CrossRefGoogle Scholar
Lange, A., List, J. A., & Price, M. K. (2007). Using lotteries to finance public goods: Theory and experimental evidence. International Economic Review, 48(3), 901927. doi: 10.1111/j.1468-2354.2007.00449.x.CrossRefGoogle Scholar
Levitt, S. D., & List, J. A. (2007). What do laboratory experiments measuring social preferences reveal about the real world?. Journal of Economic Perspectives, 21(2), 153174. doi: 10.1257/jep.21.2.153.CrossRefGoogle Scholar
Li, L., Tian, G., & Wang, Z. (2013). Universities have more female students in China? Retrieved July 8, 2017, from http://www.jyb.cn/high/gjsd/201310/t20131017_555945.html.Google Scholar
Li, H., & Van Ryzin, G. G. (2017). A systematic review of experimental studies in public management journals. In James, O., Jilke, S., & Van Ryzin, G. G. (Eds.), Experiments in public management research: challenges & contributions (pp. 2036). Cambridge: Cambridge University Press. doi: 10.1017/9781316676912.003.CrossRefGoogle Scholar
List, J. A. (2007a). Field experiments: A bridge between lab and naturally occurring data. The B.E. Journal of Economic Analysis & Policy, 5(2), 147.Google Scholar
List, J. A. (2007b). On the interpretation of giving in dictator games. Journal of Political Economy, 115(3), 482493. doi: 10.1086/519249.CrossRefGoogle Scholar
List, J. A. (2008). Introduction to field experiments in economics with applications to the economics of charity. Experimental Economics, 11(3), 203212. doi: 10.1007/s10683-008-9201-9.CrossRefGoogle Scholar
List, J. A., & Peysakhovich, Y. (2011). Charitable donations are more responsive to stock market booms than busts. Economics Letters, 110(2), 166169. doi: 10.1016/j.econlet.2010.10.016.CrossRefGoogle Scholar
Ma, J., Wang, Q., Dong, C., & Li, H. (2017). The research infrastructure of Chinese foundations, A database for Chinese civil society studies. Scientific Data, 4. p. 170094. doi: 10.1038/sdata.2017.94.CrossRefGoogle ScholarPubMed
Mason, D. P. (2013). Putting charity to the test: A case for field experiments on giving time and money in the nonprofit sector. Nonprofit and Voluntary Sector Quarterly, 42(1), 193202. doi: 10.1177/0899764012449518.CrossRefGoogle Scholar
Mason, D. P. (2016). Recognition and cross-cultural communications as motivators for charitable giving a field experiment. Nonprofit and Voluntary Sector Quarterly, 45(1), 192204. doi: 10.1177/0899764015576408.CrossRefGoogle Scholar
McGranahan, L. M. (2000). Charity and the bequest motive: Evidence from seventeenth-century wills. Journal of Political Economy, 108(6), 12701291. doi: 10.1086/317685.CrossRefGoogle Scholar
Null, C. (2011). Warm glow, information, and inefficient charitable giving. Journal of Public Economics, 95(5–6), 455465. doi: 10.1016/j.jpubeco.2010.06.018.CrossRefGoogle Scholar
Ostrom, E. (1990). Governing the commons: The evolution of institutions for collective action. Cambridge: Cambridge University Press doi: 10.1017/CBO9780511807763.CrossRefGoogle Scholar
Peck, L. R., & Guo, C. (2015). How does public assistance use affect charitable activity? A tale of two methods. Nonprofit and Voluntary Sector Quarterly, 44(4), 665685. doi: 10.1177/0899764014527642.CrossRefGoogle Scholar
Sargeant, A., & Shang, J. (2011). Bequest giving: Revisiting donor motivation with dimensional qualitative research. Psychology and Marketing, 28(10), 980997. doi: 10.1002/mar.20424.CrossRefGoogle Scholar
Scharf, K. (2014). Impure prosocial motivation in charity provision: Warm-glow charities and implications for public funding. Journal of Public Economics, 114, 5057. doi: 10.1016/j.jpubeco.2013.10.002.CrossRefGoogle Scholar
Shang, J., & Croson, R. (2009). A field experiment in charitable contribution: The impact of social information on the voluntary provision of public goods. The Economic Journal, 119(540), 14221439. doi: 10.1111/j.1468-0297.2009.02267.x.CrossRefGoogle Scholar
Smith, V. L. (2010). Theory and experiment: What are the questions?. Journal of Economic Behavior & Organization, 73(1), 315. doi: 10.1016/j.jebo.2009.02.008.CrossRefGoogle Scholar
Soetevent, A. R. (2011). Payment choice, image motivation and contributions to charity: Evidence from a field experiment. American Economic Journal: Economic Policy, 3(1), 180205.Google Scholar
Van Ryzin, G., Riccucci, N., & Li, H. (2017). Representative bureaucracy and its symbolic effect on citizens: A conceptual replication. Public Management Review, 19(9), 13651379. doi: 10.1080/14719037.2016.1195009.CrossRefGoogle Scholar
Wang, L., & Ashcraft, R. F. (2014). Organizational commitment and involvement: Explaining the decision to give to associations. Nonprofit and Voluntary Sector Quarterly, 43(s2), s61s83. doi: 10.1177/0899764013515755.CrossRefGoogle Scholar
Zhou, Y., Lian, H., Chen, Y., Zuo, C., & Ye, H. (2013). Social role, heterogeneous preferences and public goods provision. Economic Research, 1, 123136.Google Scholar