Nature of the publicationJournal article
Title of the publicationThe Impact of Social Investing on Charitable Donations
Journal name/Book publisherManagement Science
DOIdoi.org
Abstract

We examine the impact of social investing on charitable donations using a unique data set consisting of investment behaviors and donation transactions for more than 10,000 customers of an investment app platform. We find that investors switching to a recently introduced social fund reduced their donations, mainly in charities supporting causes similar to those of the social fund. However, 79% of the investors that switched to the social fund did not donate before switching, so the social fund attracted more people to fund social causes. Still, because of the substitution effect, we estimate social funds have a positive effect on society only if their annual contributions to social causes are greater than 3.2% of the balance invested.

Author #1Jake An
Affiliation Author #1University of Technology Sydney
Author #2Donnel Briley
Affiliation Author #2University of Sydney
Author #3Shai Danziger
Affiliation Author #3Tel-Aviv University
Author #4Shai Levi
Affiliation Author #4Tel-Aviv University