Companies may sell products and services and promise to make a donation for every item purchased. Similarly, sellers at auctions (e.g. on eBay) may commit to donating a share of the final price. In the long run, it only makes sense for charities and fundraisers will only want to encourage and support this if these products tend to be valued more (and sell for more money) than products/auctions not tied to donations.

Alternative tool name: Sales fundraising

Tool variation:

Category: Incentives/gifts

Sub-category: Direct incentive

Relevant theories:

Type of evidence: Causal-observational (IV etc)

Evidence strength (ad hoc assessment): 7

Main findings

“leads to higher sale probabilities and prices [across a broad sample] … [thus] makes charity ties an efficient way for sellers to make donations.” Most effective for sellers with the least previous feedback, suggesting a charitable donation signals quality.

Discussion



Practical relevance

May be a superpower because it triggers *fairness* and EA charities can buy more because of low costs and standards of living in LDCs. CURRENT: Common practice for certain international charities close to EA (like the water aid funds tied to bottled water); (Examples: Toms gives shoes/shoes; Warby-Parker glasses/glasses) “buy a pair give a pair”; more generally buy 'consumption tax' goods like chocolate. Future: Sparrow type app (COIs note)

Use cases



Prevalence:

Common

Key papers

Secondary papers


Contributors David Reinstein

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  • tools/donations_tied_to_purchases.txt
  • Last modified: 2018/08/02 21:56
  • by david