The Price Elasticities of Charitable Contributions: A Meta-Analysis*

John Peloza

Piers Steel

Tax deductibility has been recognized as a motive for charitable donations. This article considers charitable donations as purchases that consumers make, and it examines the effects of changes in the tax deductibility (i.e., the price of donating) on charitable donations. The meta-analysis includes approximately four decades of estimates of the price elasticity of charitable giving. The authors discuss implications for policy makers and the marketers of charities.

* Peloza, John and Piers Steel (2005), “The Price Elasticities of Charitable Contributions: A Meta-Analysis,” Journal of Public Policy & Marketing, 24 (2), 260-272.