How Do People Decide to Donate to Political Campaigns or Charitable Foundations?

Knowledge at Wharton

Episode Description

EPISODE OVERVIEW Wharton’s Pinar Yildirim untangles the relationship between charitable and political giving, which are both on the rise. This episode is part of a series on “Charitable Giving.”

PODCAST OVERVIEW Every day, business scholars answer pressing questions in their research - but what do their insights mean for you? In this podcast, Wharton faculty dive into what inspired their studies and how their findings resonate with the world today. Learn how research insights translate into knowledge you can use, with host Dan Loney.

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Brief Summary

Pinar Yildirim discusses how political and charitable donations influence each other, especially during disasters and election cycles.

Key points

  • Charitable Giving vs Political Donations. A $1 increase in charitable giving leads to a 42 cent decline in political donations, highlighting the competition for donor dollars.
  • The Ripple Effect of Donations. Pinar Yildirim explores the relationship between political and charitable giving, revealing a significant impact of one on the other.
  • Money in Politics and Election Outcomes. Surprisingly, increased political donations can enhance the chances of challengers winning elections, promoting competitiveness.

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