Topic > Why Charity Matters: Motivations and Implications of Charity

IndexIntroductionInternal and External Types of MotivesReasons for CharityEconomic Aspects of CharityThe Effect of Income Level on CharityTax BenefitsThe Effect of Gender on CharityThe Effect of Age on CharityThe effect of education on charityThe effect of religion on charityPossible problems in charityWhy charity is important: The benefits of charityLiterature reviewConclusionReferencesIntroductionIn modern society, charity is carried out in various forms. Individual charity, which anyone can engage in, is usually carried out in forms such as begging, volunteering, contributions to charitable funds, and participation in various charitable events. Private charity, which today is conducted by entrepreneurs and commercial organizations, can be presented in the form of artistic patronage, sponsorship, grants or the creation of charitable foundations. The State provides assistance to the needy also in the form of guardianship, but in the literature there is no consensus on whether such activities of state structures can be considered charitable. Nowadays, charitable foundations that can be established in commercial sectors and third sector enterprises (non-profit and non-governmental organizations) are increasingly engaged in charity. Understanding why charity matters is crucial to promoting a more compassionate and supportive society. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Charitable foundations are divided into private, corporate, and community foundations. Private funds are created with funds received from private individuals, which are deposited in banks or placed in stocks, and the investment income is used for charitable purposes. Corporate foundations are also donor organizations that create and fund companies to run their charitable programs. These funds are not independent, unlike private and community foundations, they directly depend on the objectives and priorities that the company sets itself. Community foundations are foundations created to solve problems in a particular area. These funds accumulate funds to solve these problems from various sources, from private donations from the population to funds from municipal budgets. Types of Internal and External Motivation Overall, motivation can be induced by internal and external stimuli. The first category is a type of motivation in which the triggering and regulating factors arise from personal consciousness and are completely internal to the behavior itself. On the other hand, external motivation is a motivation in which the factors that influence a person's behavior are outside of the person's consciousness or outside of their behavior. Comparing intrinsic and extrinsic motivations, the former can be long-lasting and self-sustaining. As a rule, external motivation is used to achieve results that cannot be achieved by internal motivation (Ryan and Deci, 2000). Apart from external reasons for giving to charity, which may be material rewards, tax cuts or the creation of a good name, there are internal reasons for being a donor, for example a sense of the importance of this type of activity, interest intrinsic, satisfaction and altruistic motivations. Motives of Charity Several researchers debate the true motivations of donors. Thus, for example, a connection has been found between charitable behavior and personality traits such as extraversion, integrity and social coherence (Nettle and Liddle, 2008), a relationship withtendency towards empathy (Eisenberg, Miller, 1987), good humor combined with a focus on others (Gibbons, Wicklund, 1982), the importance of values ​​such as religiosity (Clary, Snyder, 1991; Omoto, Snyder, 1993), the influence of situational factors (Latane, Darley, 1970) and components of motivation, such as the sense of personal contribution and positive emotions (Andreoni, 1989; 1990; Ribar, Wilhelm, 2002). As a result of the studies Zhukov (Zhukov,2002) grouped the motivations of donors into three main categories 1) charity as a moral attitude of the donor (public duty, personal knowledge of the problems of people who need help and understanding of the need for state support in the fields of culture, science and education), 2) emotional reactions (compassion, pity and inner desire to help those in need) and 3) practical benefits (creation of a positive image of the company, advertising, improvement of relations with authorities and creating a good reputation for yourself).Economic aspects of charityIn the macroeconomic aspect, charity is a state-independent mechanism for the redistribution of private funds in the interests of implementing socially useful programs. This is a kind of voluntary taxation mechanism in which “taxes” are paid voluntarily and not to the centralized “budget”, but directly to the budget of the program executor. A charitable resource can take any form: money, services, property, or labor. An important feature of charity is that, in addition to benefiting a specific person or group of people, it is socially beneficial in general, in other words, individual assistance to a specific person is at the same time assistance to the whole society. The whole society benefits when a particular person wins. This is possible if only the well-being of this person is the object of public interest, function and responsibility of society, the state and self-government, that is, every member of society has the burden of ensuring it. The Effect of Income Level on Charity A positive correlation was found between income level and the amount of charitable donations. In the United States, for example, Auten and Rudney, using federal income tax data for the years 1971-1975 (Auten, Rudney 1990), studied this phenomenon. Furthermore, Jones and Posnett studied the expenditure of British families from the same point of view (Jones, Posnett 1991). The researchers were interested in both the extent of donation involvement and the size of contributions. This study demonstrated that commitment reflects the influence of education, gender, and prestige of the position, however, the level of giving is sensitive only to the level of family income. Family income, according to these authors, is a variable on the basis of which it is possible to predict the total amount of donations. Tax Benefits Let us now consider the factor relating to the provision of income tax benefits to donors. Studies have long been conducted to explore the relationship between the amount of donations and the benefits. In one of the first studies on this topic, Rice concluded that charitable tax deductions are an important factor in determining the level of down payment payments (Reece 1979). Numerous recent studies have clarified and confirmed the findings of this scientist in accordance with modern tax laws (Peloza, Steel 2005). On the contrary, Bradley, Holden and McClelland have shown that retail tax breaks do not always affect the amount of contributions (Bradley, Holden, McClelland 2005). Although there is no other evidence of the phenomenon, this fact can be considered, perhaps, a change in the field of donor motivation. The effect of gender oncharity In numerous scientific works, researchers have shown gender differences in the level of participation in charitable activities (Odendah 1990; Havens, O'Herlihy, Schervish 2006). Some studies show that men donate more, while women do so more often (Jackson, Latané 1981; Weyant 1984; Andreoni, Brown, Rischall 2003; Bekkers 2004; Giving UK 2005). National philanthropic surveys in the United States (Hodgkinson, Weitzman 1992; 1994; 1996; Kirsh, Hume, Jalnadoni 1999) showed that women were more likely than men to support contributions to the nonprofit sector. Thus, according to a 1991 survey, the differences were 74% in women versus 70% in men; in 1993 76 versus 70% respectively; in 1995 - 71 against 65%; in 1998: 73 against 67%. M. Capeck opposed gender assignmenttoo significant differences, however, considering cases of transfer of inheritance rights, he nevertheless found that the number of unmarried women who leave a will in favor of charity significantly exceeds the number of men who they act in this way (44 versus 32%) (Capek 2005). Eckel and Grossman, using an experimental approach, found that women are generally more altruistic than men (Eckel and Grossman 1998). On the contrary, Bolton and Katok, also based on experimental studies, wrote about the absence of any difference in participation in charity between men and women (Bolton, Katok 1995). Meanwhile, Andreoni and Vesterlund offered an explanation for these conflicting results and showed that men tend to be more generous than women when the contribution is smaller, i.e. the loss is less painful for the donor, while women are more likely to donate when the price of the contribution is relatively high (Andreoni, Vesterlund 2001). In summary, these authors argue that women, compared to men, are more interested in justice and equality, this consideration is consistent with the hypothesis that women are more socially oriented than men. Despite abundant evidence, there is no consistent and reliable general theory on the influence of gender on the level of charity participation. The effect of age on charity Another factor traditionally considered in studies of private charity is the age of the donor. Its meaning is understandable, since age characterizes the stages of the life cycle and, therefore, to some extent reflects the stability of the situation and financial capabilities of a person. Summarizing the results of various studies, Bekkers and Wiepking conclude that the usual conclusion on the relationship between age and the size of donations is positive, but with a decreasing effect (Bekkers, Wiepking 2010:4). Some authors write that a positive effect is observed up to the age of 75 (Hodgkinson, Weitzman 1996; Andreoni 2001), after which a decrease is observed, others find such a decrease starting from the age of 65 (Landry, Lange, Price, Rupp 2006). The Effect of Education on Charity Philanthropic scholars also pay close attention to the role of education. Based on material from Western countries, it is shown that more educated individuals show a greater propensity to donate and, other things being equal, donate relatively large amounts. For example, Banks and Tanner found that in the United Kingdom, people who graduate from college participate more often in charitable activities. Comparing two categories of people who are equal in all respects, except that some of them have a college degree and others only school, it was found that college graduates are 11% more likely to donate (Banks, Tanner 1999: 175). According to the same study, the amount of donations from people with higher education is alsosignificantly higher: they donate 80% more to charity than their non-certified colleagues. In analyzing families' charitable activities, Yen also finds a similar relationship between education level and charitable giving. After analyzing data from the 1995 Consumer Expenditure Survey, he comes to the following conclusion: the intention to engage in charity occurs in those families that have a high income level and are headed by educated adults and individuals (Yen 2002 : 839). Banks, Tanner, and Yen use a similar econometric methodology to analyze the relationship between educational attainment and charitable activity and recognize the impact of variables such as age and income on educational attainment. This is why it is difficult to analyze the relationship between education and charity, without taking into account the mutual influence of all indicators. The effect of religion on charityThe results of studies on massive private donations demonstrate the high importance of the religious factor. In the sociology of religion there is a large amount of literature on the relationship between religious activity and donations (Wuthnow 1991; Jackson, Bachmeier, Wood, Craft 1995). Furthermore, the role of religion in the implementation of philanthropic practices is the subject of study in other scientific disciplines. A positive relationship between church attendance and philanthropy is noted in almost all articles devoted to the study of this issue. The religious factor explains a lot both in the motivation of philanthropic behavior and in the selection of objects of support by donors. For example, using data from the US tax office, researchers found that more than three-quarters of the donations that Americans make with incomes of $50,000 or more go to religious organizations (Anft, Lipman 2003). Furthermore, as Steinberg and Wilhelm have shown, donations to religious organizations are made by 21% of Americans who do not profess a single religion (Steinberg, Wilhelm 2003). It is important to note that the authors excluded from this analysis respondents who did not disclose information about their religion or who found it difficult to answer this question. Interpreting these data, the authors cited hypothesize that charity, as such, is associated with a religion, which in itself encourages people who do not profess any religion to make donations, and those who profess any religion are ready to donate much more . Possible Problems in Charity Despite the fact that charity is a popular phenomenon nowadays, not all countries have a well-structured system. Let's take Russia as an example and highlight some problems in charity. The main ones are 1) unfavorable tax system for donors; If it were legislatively approved that the funds allocated for charity go to the company, thus reducing taxable profits, then there would be many more contributions and donations. For example, the United States became the first country in the world to make charity profitable when, in 1921, the amount of taxes on the donated amount was reduced, 2) unstable economic situation, which at any moment can transform into losses and require unplanned expenses and investments. Therefore, it is always necessary to have a reserve to cover losses and 3) distrust of public organizations. This may be due to the fact that everyone clearly remembers the difficult times of Perestroika, when a large number of fraudulent enterprises were created. Why Charity Matters: The Benefits of Charity Overall, there are two views on the interdependence between a person's level of happiness and his or her attitude to charity. The first is to state that peoplethey help others become happier. Elizabeth Dunn, professor at the University of British Columbia and co-author of the book Happy Money, demonstrated the dependence of happiness not only on income but also on spending. Therefore, out of 600 respondents, regardless of income level, those who reported charitable donations as expenses were considered happier. (Dunn and Norton, 2014). Subsequently, scientists compared the level of happiness in two states as different in economic and social terms as Canada and Uganda. The results were confirmed: both people felt happier when they spent pro-socially rather than on themselves. Therefore, the emotional benefits of helping others are inherent in all human beings, regardless of their social status and economic well-being. (Aknin et al., 2013). Furthermore, a survey analysis involving 130 different countries showed that financial generosity is one of the top six indicators of life satisfaction globally. The second view on the dependence between happiness and charity is that happy people donate more actively. In 1972, Isen and Levin demonstrated that happiness increases giving, in other words, they showed that participants were more likely to help others after experiencing positive events, such as receiving cookies. Literature Review The theoretical and methodological foundations of the study served as fundamental concepts and hypotheses presented in classical and modern works of researchers. The practicalThe importance of the study lies in the fact that it develops and complements the theoretical and methodological basis for the study of charity by establishing the particular characteristics of this activity, revealing the meaning of the basic ideas of the socioeconomic activities of charitable organizations. The main provisions, conclusions and recommendations proposed in the thesis research can be used for the effective development of charitable organizations. Especially if we know what motivates people to participate in any type of charity, we can effectively increase donations. Most existing research is conducted only in one particular area, for example charitable giving in the UK, Russia and the USA. This work is based on gathering information and identifying similarities and differences from around the world. The following survey includes a questionnaire aimed at people from different countries. This can add a deeper understanding of pure donor motivations to existing research. Furthermore, the interviews will be based on talks with a woman from a charity organization in Russia and with the CEO of the foundation "Public Opinion", who is a sociologist, so she will help us by providing an analysis of the participants of the organization charity .Remember: this is just an example.Receive a personalized paper from our expert writers now.Receive a personalized essayConclusionFrankly speaking, the current socioeconomic situation in Russia is accompanied by unfavorable factors of social development associated with the manifestation of negative trends such as increased social differentiation, increased poverty and significant income inequality. Under such conditions, the number of socially vulnerable groups of the needy population increases. By analyzing this information, this research work can be said to be updated and will contain information that has not yet been widely discussed. Furthermore, one of the main objectives of the interview will be to clarify why these donors have chosen to dedicate their lives to these activities. Bibliography Aknin, LB, Barrington-Leigh,,.