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Paper

Insuring Your Donation – An Experiment

MPS-Authors
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Engel,  Christoph
Max Planck Institute for Research on Collective Goods, Max Planck Society;

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http://www.coll.mpg.de/pdf_dat/2015_16online.pdf
(Preprint)

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Citation

Buijze, R., Engel, C., & Hemels, S. (2015). Insuring Your Donation – An Experiment.


Cite as: https://hdl.handle.net/11858/00-001M-0000-0028-9312-3
Abstract
An increasing fraction of donations is channeled through donation intermediaries. These enti-ties serve multiple purposes, one of which seems to be providing donors with greater certainty: that the donation reaches its intended goal, and that the donor may be sure to get a tax ben-efit. We interpret this function as insurance and test the option to insure donations in the lab. Our participants indeed have a positive willingness to pay for insurance against either risk. Yet the insurance option is only critical for their willingness to donate to a charity if the un-certainty affects the proper use of their donation.