A STUDY ON DONOR DECISION MAKING: THE IMPACT OF DIFFERENT GOVERNANCE APPROACHES ON INDIVIDUALS’ INCLINATIONS TOWARD INFORMED GIVING AND PREFERENCES FOR DIFFERENT INFORMATION SOURCES

Abstract

Throughout the world, different models of governing non-profit sectors are adopted. In Singapore, the regulatory framework is proposed to be one that encourages self regulation, where the donating public engages in informed giving. However, would this governance model work? Given the large amount of donations involved, it is critical to understand the effect of different governance models on donor decision making so as to minimise the possibility of a mismatch between policy intent and the actual situation. A 1 x 3 experimental design was used in this study to examine if different governance models affect the extent to which individuals are inclined towards informed giving, as well as individuals’ preferences for various information sources. The results of this study provide evidence that the governance model will have an impact on the donating public’s inclination to and acceptance of informed giving. There is also evidence that donors will rely on some sources over others, and that these reliance profiles will differ under different governance models. However, less evidence was found that governance models will affect individuals’ tendencies to rely on various information sources. Despite this, there is reason to believe the governance model will matter if the concept of informed giving is explained to individuals. The research findings suggest that if it is the policy intent to have a self-regulated charity sector, it is critical that the public be educated on the concept of informed giving and understand how they can go about doing it. In particular, clearer signals need to be sent if Singapore truly wants to have a charity sector in which the public engages in informed giving. In addition, the findings raise questions about existing non-profit research which only focused on the impact of one information source at a time.