On time and money donations

This paper investigates the importance of two forms of ‘impure’ altruism (“warm glow” and reputational concerns) as potential determinants of both time and money gifts. We first develop a comprehensive behavioral model which accounts for both types of donations, as well as for decisions about domestic and market hours of work. We then provide an empirical test of these drivers for giving using survey data for Italy. Results suggest that, according to the theoretical predictions, proxies for ‘impure’ altruism are important determinants of donations. Moreover, the unobservable determinants driving money and time donations are positively correlated, suggesting a certain degree of complementarity between the two decisions. Our findings also stress the importance of considering a behavioral model accounting for a full set of time and income uses to better characterize individual decisions to donate.

► We investigate two forms of impure altruism as determinants of time and money gifts.
► Predictions from a theoretical model are tested using survey data for Italy.
► Proxies for impure altruism are shown to be important determinants of donations.
► Unobservable determinants driving money and time donations are positively correlated.
► Gender differences stress the importance of using a comprehensive behavioral model.