How Much Are You Willing to Give?

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VISUAL DISPLAYS OF DATA: HOW MUCH ARE YOU WILLING TO GIVE?
How Much Are You Willing to Give?
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You must read each slide, and complete any questions on the slide, in sequence.

Welcome

How Much Are You Willing to Give?

Authors:

Kelly M. Goedert, Seton Hall University

Susan A. Nolan, Seton Hall University

Kaylise D. Algrim, Seton Hall University

Woman donating money to charity car wash
Hero Images/Getty Images
There are a lot of great causes and a lot of people working to make the world a better place. Many organizations rely on donations to get things done, and most of us get requests to donate to a charity at some point. A common sign says, “Please give generously.” But how do we decide how much giving is generous? Imagine you were the person asking someone else to give to your charity. Would it be helpful for you to nudge a donor with a suggested amount? This is exactly the question that researchers Indranil Goswami and Oleg Urminsky (2016) set out to answer in a series of studies on charitable giving. Do you think it would help or hurt a charity’s fundraising efforts to suggest a default donation?

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To investigate whether suggesting a default amount affects charitable giving, Goswami and Urminsky (2016) conducted an online study in which they told participants that they would be entered into a drawing to win $20. The participants were then told about a charity and asked if they would be willing to donate part of their winnings to that charity (in the event that they won the drawing). Six donation levels were listed: $0, $0.50, $2, $5, $10, and $15, with one of the options preselected. The participant could either stick with the preselected donation level or select a different option.

Line graph showing the donation rate decreasing as the pre-selected donation amount increases. Please move to the “Description” link for the full explanation.
The line graph shows the donation rate decreasing as the pre-selected donation amount increases. The straight line slopes downward as it goes to the left. The horizontal x-axis is labeled “Pre-selected donation level in dollars” and the scores range from “0” to “15” in increments of 5. The vertical y-axis is labeled “Donation rate;” at the bottom of the y-axis there is a “0” with cut marks above it and then the donation rates range from 50-80 in increments of 5. The line runs from a donation rate of about 75% for a pre-selected donation level of $0 down to about 60% for a pre-selected donation level of $15.
The researchers measured both the donation rate (the percent of participants giving any amount) and the average donation amount. The figure shown here graphs the line of best fit representing the relation between the preselected donation level and the donation rate. (Note that this graph does not have all of the individual data points, as is typical of a scatterplot with a line of best fit. This is because there were too many individual participants—3486—in this study to fit in the graph!) Based on the graph, what is the relation between the preselected donation level and the donation rate?
Correct! Increasing the preselected donation amount was associated with decreases in the donation rate.
Actually, increasing the preselected donation amount was associated with decreases in the donation rate.

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Line graph showing the donation rate decreasing as the pre-selected donation amount increases. Please move to the “Description” link for the full explanation.
The line graph shows the donation rate decreasing as the pre-selected donation amount increases. The straight line slopes downward as it goes to the left. The horizontal x-axis is labeled “Pre-selected donation level in dollars” and the scores range from “0” to “15” in increments of 5. The vertical y-axis is labeled “Donation rate;” at the bottom of the y-axis there is a “0” with cut marks above it and then the donation rates range from 50-80 in increments of 5. The line runs from a donation rate of about 75% for a pre-selected donation level of $0 down to about 60% for a pre-selected donation level of $15.
The graph from the previous screen, which plotted the line of best fit representing the relation between the preselected donation level and the donation rate, is reproduced here. The construction of this graph violates best practices and misleads the reader. What is the problem with the graph that makes it misleading?
Correct! The researchers have graphed only a small portion of the y-axis. The result is that the steepness of the line is exaggerated. The relation between preselected donation and donation rate would look less impressive if the entire y-axis was graphed from 0% to 100%.
Actually, the researchers have graphed only a small portion of the y-axis. The result is that the steepness of the line is exaggerated. The relation between preselected donation and donation rate would look less impressive if the entire y-axis were graphed from 0% to 100%.

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Line graph showing the average donation size increasing as the pre-selected donation level in dollars increases. Please move to the “Description” link for the full explanation.
The line graph shows the average donation size increasing as the pre-selected donation level in dollars increases. The straight line slopes upward as it goes to the right. The horizontal x-axis is labeled “Pre-selected donation level in dollars” and the scores range from “0” to “15” in increments of 5. The vertical y-axis is labeled “Average donation size;” at the bottom of the y-axis there is a “0” with cut marks above it and then the amounts range from $5-$10 in increments of $1. The line runs from an average donation size of $6 for a pre-selected donation level of $0 up to about $7.50 for a pre-selected donation level of $15.
So far, we have looked at just the results of varying the preselected donation level on donation rate, but the researchers also measured the size of the average donation. The graph shown here depicts the line of best fit relating the preselected donation level to the average donation size. Based on the graph, what is the relation between the preselected donation level and the average donation size?
Correct! Increasing the preselected donation amount was associated with increases in the average donation size.
Actually, increasing the preselected donation amount was associated with increases in the average donation size.

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Graph showing the differences in average earnings per person for the pre-selected donation level (which had three conditions) for two types of information, either neutral or positive. Please move to the “Description” link for the full explanation.
The graph shows the differences in average earnings per person for the pre-selected donation level, which had three conditions (a control group with no pre-selected donation level, a “low” group with a pre-selected donation level of $0.50, and a “high” group with a pre-selected donation level of $15.00), broken down by information participants were given about the charity – either neutral information or positive information. The horizontal x-axis is labeled “Pre-selected donation level in dollars” and there is a pair of vertical bars for each condition, one for participants who were told something neutral about the charity and one for participants who were told something positive about the charity, for a total of 6 bars. The vertical y-axis is labeled “Average earnings per person” and has tick marks from $0 to $7 in $1 intervals. In the control group, the bars were at heights of a little over $2 and a little over $6, so the average earnings per person were almost $4 greater for participants who were told something positive; in the $0.50 group, the bars were at heights of a little over $3 and a little over $4, so the average earnings per person were about $1 greater for participants who were told something positive; and in the $15 group, both bars were at heights of about $5.50, so the average earnings per person were about even.
In a follow-up study reported in the same paper, the researchers wanted to know whether being told positive information about a charity changed the way that participants responded to a preselected donation prompt. In this study, participants were told either something positive or something neutral about the charity. They were then given the option of giving between $0.50 and $15. There were three conditions. In one condition, participants did not have any donation level preselected (control); in a second condition, participants had the lowest option ($0.50) preselected; and in a third condition, participants had the highest option ($15) preselected. The graph shown here depicts the average earnings per person (including people who elected not to donate) in each condition, which tells us how much the charity earned given the number of participants asked to donate. Based on the graph, what was the dependent variable in this study?
Correct! The dependent variable is typically depicted on the y-axis. In this case, that is the earnings per person.
Actually, the dependent variable is typically depicted on the y-axis. In this case, that is the earnings per person.

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Graph showing the differences in average earnings per person for the pre-selected donation level (which had three conditions) for two types of information, either neutral or positive. Please move to the “Description” link for the full explanation.
The graph shows the differences in average earnings per person for the pre-selected donation level, which had three conditions (a control group with no pre-selected donation level, a “low” group with a pre-selected donation level of $0.50, and a “high” group with a pre-selected donation level of $15.00), broken down by information participants were given about the charity – either neutral information or positive information. The horizontal x-axis is labeled “Pre-selected donation level in dollars” and there is a pair of vertical bars for each condition, one for participants who were told something neutral about the charity and one for participants who were told something positive about the charity, for a total of 6 bars. The vertical y-axis is labeled “Average earnings per person” and has tick marks from $0 to $7 in $1 intervals. In the control group, the bars were at heights of a little over $2 and a little over $6, so the average earnings per person were almost $4 greater for participants who were told something positive; in the $0.50 group, the bars were at heights of a little over $3 and a little over $4, so the average earnings per person were about $1 greater for participants who were told something positive; and in the $15 group, both bars were at heights of about $5.50, so the average earnings per person were about even.
The graph representing the results of the study that investigated whether being told positive information about a charity changed the way that participants responded to a preselected donation amount is reproduced here. Based on the graph, what are the independent variables in this study?
Correct! Independent variables are typically depicted on the x-axis and in the color-coded legend. Here we see the preselected donation level (control, $0.50, and $15) on the x-axis and the information type (positive, neutral) in the legend.
Actually, independent variables are typically depicted on the x-axis and in the color-coded legend. Here we see the preselected donation level (control, $0.50, and $15) on the x-axis and the information type (positive, neutral) in the legend.

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Graph showing the differences in average earnings per person for the pre-selected donation level (which had three conditions) for two types of information, either neutral or positive. Please move to the “Description” link for the full explanation.
The graph shows the differences in average earnings per person for the pre-selected donation level, which had three conditions (a control group with no pre-selected donation level, a “low” group with a pre-selected donation level of $0.50, and a “high” group with a pre-selected donation level of $15.00), broken down by information participants were given about the charity – either neutral information or positive information. The horizontal x-axis is labeled “Pre-selected donation level in dollars” and there is a pair of vertical bars for each condition, one for participants who were told something neutral about the charity and one for participants who were told something positive about the charity, for a total of 6 bars. The vertical y-axis is labeled “Average earnings per person” and has tick marks from $0 to $7 in $1 intervals. In the control group, the bars were at heights of a little over $2 and a little over $6, so the average earnings per person were almost $4 greater for participants who were told something positive; in the $0.50 group, the bars were at heights of a little over $3 and a little over $4, so the average earnings per person were about $1 greater for participants who were told something positive; and in the $15 group, both bars were at heights of about $5.50, so the average earnings per person were about even.
The graph representing the results of the study that investigated whether being told positive information about a charity changed the way that participants responded to a preselected giving prompt is reproduced here. What type of graph is this?
Correct! This is a bar graph.
Actually, this is a bar graph.

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Graph showing the differences in average earnings per person for the pre-selected donation level (which had three conditions) for two types of information, either neutral or positive. Please move to the “Description” link for the full explanation.
The graph shows the differences in average earnings per person for the pre-selected donation level, which had three conditions (a control group with no pre-selected donation level, a “low” group with a pre-selected donation level of $0.50, and a “high” group with a pre-selected donation level of $15.00), broken down by information participants were given about the charity – either neutral information or positive information. The horizontal x-axis is labeled “Pre-selected donation level in dollars” and there is a pair of vertical bars for each condition, one for participants who were told something neutral about the charity and one for participants who were told something positive about the charity, for a total of 6 bars. The vertical y-axis is labeled “Average earnings per person” and has tick marks from $0 to $7 in $1 intervals. In the control group, the bars were at heights of a little over $2 and a little over $6, so the average earnings per person were almost $4 greater for participants who were told something positive; in the $0.50 group, the bars were at heights of a little over $3 and a little over $4, so the average earnings per person were about $1 greater for participants who were told something positive; and in the $15 group, both bars were at heights of about $5.50, so the average earnings per person were about even.
The graph representing the results of the study that investigated whether being told positive information about a charity changed the way that participants responded to a preselected giving prompt is reproduced here. Based on the graph, which of the following statements best captures the results of the study?
Correct! The bar representing those receiving positive information, but no preselected donation amount (the control), showed an average earning of $6 per person for the charity, which is about the same as that for participants receiving the high preselected donation amount.
Actually, the bar representing those receiving positive information, but no preselected donation amount (the control), showed an average earning of $6 per person for the charity, which is about the same as that for participants receiving the high preselected donation amount.

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The bottom line: Whether you give a little or give a lot, donations do add up. If you want people to give more, then you might suggest that they do, or you might give them positive information about the charity.

Coins being donated in charity bucket
Peter Dazeley/Photographer's Choice/Getty Images

REFERENCES

Goswami, I., & Urminsky, O. (2016). When should the ask be a nudge? The effect of default amounts on charitable donations. Journal of Marketing Research, 53, 829–846. https://doi.org/10.1509/jmr.15.0001