Major Drivers of Charitable Giving’s and Donations in Case of Pakistan

Abstract

Giving charity is a worldwide phenomenon. Charities help to bring social wellbeing in a society. The world is full of philanthropists who have empathy for the needy with an objective to work for the betterment of whole community. Pakistan is also facing severe poverty crisis and in that situation those philanthropist need to play their role along with government. For that it needs to be identified that what are the major drivers of giving charity in case of Pakistan. For that purpose, this study is conducted based on sample size of 1000 tried to cover maximum districts of Punjab to have representation of each area through cluster sampling. Ordered Probit Regression model is used to identify the possible determinant of donation from a list of individual and perceptual characteristics identified through literature. The analysis found that higher income; higher number of educated members, less household size, family influence and altruism are the major driver of giving more donations in case of Pakistan. The perceptual variables like warm glow, prestige, reciprocity don’t have any significant impact on donations. The study also analyzed the behaviour of donor in terms of in-kind and time donation revealed that people prefer to share household goods, used clothes and foods with the less advantaged. In term of voluntary time donation, on average 3.45 hours per week are spend in altruistic activities. The government needs to work on above identified drivers of charity to increase donations volume. By mobilizing the donations of individuals, the burden on part of government can be shared in terms of projects based on social safety net.