Nudging People to Give More to Charities, Foundations and NGOs

Abstract

Nudge is an intervention that is derived from behavioral economics and behavioral science to design and implement policies. The affordability and ease of use are essential reasons for applying this new tool. One of the critical areas of using nudge is to increase donations and volunteer activities. Studies show that Iran has the potential for donations and endowments, as well as non-financial contributions such as volunteer activities. Nevertheless, the adopting of nudge in such activities has been neglected in Iran. In this study, effective nudges which are 1- Simplification, 2- Responsiveness, and 3- Social norms, are assessed in order to develop participation and sustainable donation for foundations, charities, and NGOs. This article introduces each of these nudges and their application and results in the real world. Meanwhile, it describes how we can implement these nudges in Iran.

Keywords

• behavioral economics
• nudge
• philanthropy
• non-governmental organization (ngo)
• fundraising
• impulsive donor
• deliberative donor