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A warm glow in the after life? The determinants of charitable bequests

Author

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  • Michael Sanders
  • Sarah Smith

Abstract

Using a unique field experiment we show that prompts to leave money to charity during the will-making process substantially increase the probability of making a bequest. Asking if the donor wants to leave money to charity doubles the proportion making a bequest; adding emotional and social cues trebles it. The responses are strongest among childless people. We compare the effects of the prompts to the effect of an estates tax. Our results suggest that both economic and non-pecuniary incentives similarly affect whether people leave money to charity, but are less effective where people have strong preferences for other bequests.

Suggested Citation

  • Michael Sanders & Sarah Smith, 2014. "A warm glow in the after life? The determinants of charitable bequests," The Centre for Market and Public Organisation 14/326, The Centre for Market and Public Organisation, University of Bristol, UK.
    • Handle: RePEc:bri:cmpowp:14/326
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    File URL: http://www.bristol.ac.uk/cmpo/publications/papers/2014/wp326.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kazuhiko Mikami, 2020. "On the emergence of non‐profit orchestras," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 169-189, June.

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    More about this item

    Keywords

    charitable giving; charitable bequests; prompts; social norms;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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