Giving and Philanthropy →
- 10 Sep 2009
- Working Paper Summaries
Feeling Good about Giving: The Benefits (and Costs) of Self-Interested Charitable Behavior
Helping others takes countless forms and springs from countless motivations, from deep-rooted empathy to a more calculated desire for public recognition. Social scientists have identified a host of ways in which charitable behavior can lead to benefits for the giver, whether economically via tax breaks, socially via signaling one's wealth or status, or psychologically via experiencing well-being from helping. Charitable organizations have traditionally capitalized on all of these motivations for giving, with a recently emerging focus on highlighting the mood benefits of giving—the feelings of empowerment, joy, and inspiration that giving engenders. Indeed, if giving feels good, why not advertise the benefits of "self-interested giving," allowing people to experience that good feeling while increasing contributions to charity at the same time? HBS doctoral candidate Lalin Anik, Professor Michael I. Norton, and coauthors explore whether organizations that seek to increase charitable giving by advertising the benefits of giving are making claims supported by empirical research and, most importantly, whether such claims actually increase donations. Key concepts include: Happier people give more and giving makes people happier, such that happiness and giving may operate in a positive feedback loop (with happier people giving more, getting happier, and giving even more). At the same time, charitable organizations should be concerned about the possibility of crowding out their donors' proclivity to donate in the longer term by incentivizing them (via gifts, etc.) in the short term. While offering donors monetary or material incentives for giving may undermine generosity in the long term, preliminary research suggests that advertising the emotional benefits of prosocial behavior may leave these benefits intact and might even encourage individuals to give more. Future research is needed to disentangle the possible costs and benefits of self-interested giving. The authors are actively engaging charitable organizations to conduct these studies. Closed for comment; 0 Comments.
- 15 Sep 2008
- Research & Ideas
The Coming Transformation of Social Enterprise
A new generation of business leaders and philanthropists is experimenting with hybrid forms of social enterprises while demanding more transparency and accountability from the organizations they are funding. Harvard Business School professor Kash Rangan discusses what he sees as a sector on the brink of transformation. From the HBS Alumni Bulletin. Key concepts include: Social enterprise as an entity is primarily in the business of creating social value, regardless of whether it's for-profit or nonprofit. Venture philanthropy has to come of age and reorient itself by defining what measures of social return it is looking for. Nonprofits creating for-profit enterprises could pose an unnecessary distraction. There may be some consolidation of nonprofits at the top, but the sector will be more vibrant with many new players and actors helping to facilitate the transformation. Closed for comment; 0 Comments.
- 02 Jun 2008
- Research & Ideas
Spending on Happiness
Money can't buy love but it can buy happiness—as long as it's spent on someone else. Research by Michael I. Norton and colleagues looks into how and why spending on others promotes happiness. Closed for comment; 0 Comments.
- 14 Dec 1999
- Research & Ideas
From Spare Change to Real Change: The Social Sector as a Beta Site for Business Innovation
U.S. companies have too often viewed the social sector as a dumping ground for their spare cash, obsolete equipment, and tired executives, but that mind-set, says HBS Professor Rosabeth Moss Kanter, has hardly created lasting change. In this excerpt from an article in the Harvard Business Review, she issues a call for corporate social innovation, an approach, says Kanter, that's more R&D than it is charity. Closed for comment; 0 Comments.
Sharpening Your Skills: Managing the Economic Crisis
The economic crisis is tapping the inner reserves of experienced leaders and introducing a new generation of managers to crisis management. These previous WK articles explore leadership, the role of the Board, the emotional needs of managers, and the risk to corporate giving programs. Closed for comment; 0 Comments.