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Essay: Demographic Impact on Donating Money: Age, Education, Gender, Income Factors Analyzed.

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Giving to charitable organizations is not a new phenomenon and in accordance, types of beneficiaries are various (Wiepking and Maas, 2009). Individuals intention to donate money in organizations depends on the amount of benefit they receive (Marx, 2000). Several authors analyze the benefits received from financial donation are warm glow, increased self-esteem and social status ( Ribar and Wilhelm, 2002; Bennett, 2003, Crumpler & Grossman (2008). In contrast, Todd and Lawson (1999) argue, that thus individuals seek to increase wellbeing of others, rather than just receiving benefits.  Furthermore, Lee and Chang (2007) argue that monetary donation can be best described by the demographic conditions.

In this section will be discussed influence of demographical variables, such as age, gender, income, marital status and income level (Lee et al., 1999; Liu and Aaker, 2008) on individuals’ choice to financial donation. Those variables have not been always same due to the different methods, populations and techniques used by researches to measure the reasons for contributed efforts among donors and non/donors, studies resulted that donors and non/donors differ according to personal characteristics (Todd and Lawson, 1999) because of that differences, it is difficult for organizations to sustain existing donors and it is becoming more difficult to attract new ones, as number of charitable organizations is increasing and preferences of individuals are changing (Pyne and Robertson, 1997), despite this, individuals are the biggest contributors to charities (Hibbert and Horne, 1996).

Age- Beginning from the age, Several findings suggests that relationship between the age and philanthropy is positive (Banks, J., & Tanner, S, 1999; Bekkers, R, 2003; Bekkers, R, 2006b; Bekkers & Schuyt, 2008; Bekkers & Wiepking, 2006; Carman, 2006; Carroll, et al., 2006; Duquette, C. M. 1999; Wunnava & Lauze, 2001, Lee and Chang, 2007). While some of researchers argue that age relationship decreases at higher age (Chang, 2005; Wunnava & Lauze, 2001). In this regard, several authors have mentioned a specific age, when frequency of giving is changing. Marx (2000) finds a positive relationship between age and giving to charities at the age of 49 and he mentions that women are distinguished by their philanthropic views and their willingness to contribute effort is higher than men’s effort by donating money. In addition to that, Auten and Joulfaian (1996) suggest that parents charitable giving depends on the children’s wellbeing, if children are better off, parents are more motivated to increase donation of  money for the seek of others’ wellbeing.   They also mention that, individuals’ age of 45 to 85 donate more money to charities than younger individuals. Wiepking (2009) in his research, argues that older people donate more than younger people, because of large financial and social resources.  Contrary to this, Wiepking and James III (2013) revealed that older age people are less likely to donate money, but they also provided arguments, that decreased health condition and cognitive abilities are the barrier for older people to give effort to others. In addition to that, the peak age for individuals to donate money for charitable causes is 64.Randoph (1995) argues that before age of 40, individuals’ amount of donation is not considerable changing, while people increase their giving expenditure as they grow older, specifically after the age of 40 to till 90, charitable giving of individuals is significantly increasing. Contrary to this, Landry, Lange, Price and Rupp (2006) identified that after age of 65, individuals’ intention to donate money is decreasing. Bar-tal, Raviv and Goldberg (1982) provided contradictory results from all above mentioned ideas, findings of their study suggest that no  age differences exists while donating money, instead, individual at a specific age is motivated by variables such as religion (Ranganathan and Henley, 2008), income (Bryant et al.,2003), education and marital status (Smith, 2007).  The results of Reece (1979) also proves that there no significant relationship between age and amount of donated by individuals.

Education -The level of education remains significant part of individuals’ personal characteristics for predicting the intention of giving money; different scientific articles reveal various positive correlations of education with charitable giving (Bekkers, 2003; Bekkers, 2006 b; Banks, J., & Tanner, S, 1999; Wilhelm, et al., 2008), that is due to the high financial resources and verbal abilities of potential donors,  that helps them to better understand the needs of other people (Wiepking, 2009). According to the Brooks (2004) findings, education level defines the individuals’ amount of donation, the more is person educated, the more he/she intends to donate. Apart of this, Wunnava and Lauze (2001) identified the positive relation between the reunions and donation of money, he argues that donation of money is increased while alumni reunion.

Gender/Marriage – According to the research, difference exists by giving single men, single women or marriage couple. Females report a higher interest in giving to charities rather than males (Bekker, 2010 b; Basil et al., 2008).  In case of marriage couples, decision to donate money is made by the husband, rather than women or together (Andreoni et. al. 2003). Contrary to this, married couples give more than single people (Van Slyke & Brooks, 2005), Brooks (2003 B) provided a main reason of why unmarried people are not motivated to give, as he suggests economic condition of single women or single men is not as good and strong to the comparison of married couple. Furthermore, research conducted by Wiepking (2009), gender’s effect on donation to charity is not high.

Income- Continuing the analysis of individuals’ intentions to charitable donations according to the demographical characteristics, income is one of the variables that play an important role while making the decision regarding the donating money to the organization. Brook (2003 b) revealed, despite one’s strong will to donate, individual is dependent on his/her income as income is a variable that predicts amount of giving. Basil et al., (2008) argue that individuals with lower income donate more money, while contrary results of Choi and DiNitto (2012) suggest that individuals with higher income are more intended to donate more money than individuals with low income. Follow up analyzes of Silver (1980) research shows, that those with higher and lower incomes donate large amount of their money to charities.  According to the research conducted by Einoff (2011) men have more income than women to donate money to charity.

The purpose of this section is to provide a detailed literature review of volunteering based on analyzes of scientific articles. This part is grouped into 3 subcategories. First, understanding the term of volunteering and individuals motivation second is motivational theories of volunteering and in last subchapter, will be discussed demographical variables.

Volunteering includes a wide range of distinct activities performed by individuals to help others for free, without any expectations to be paid. Because of its variety of contexts in which it operates, researchers rarely assess individuals’ motives and core characteristics of what contributes to voluntary work. That’s why, it is impossible to come up with a precise definition of volunteering (Bussell et al., 2002).

Voicu&Voicu (2009) and Wilson (2000) define volunteering as an activity performed outside the formal organizational structure (Finskelstein and Brannick, 2007), through which individuals give time willingly without any expectation of wages, for the sake of benefiting others, as well as themselves (Howell et al., 2009). In addition to that, Smith (1994) argues that volunteering is not only capability of having time but also individuals’ enthusiasm to perform different activities. Volunteering is defined as a long-term, planned and non-obligatory form of helping (Aydinli et al., 2013), indeed, it is non-spontaneous helping, which is conscious process of individuals’ (Hustinx et al., 2010). Potential volunteer decides to engage in volunteerism by considering his/her interests. Musick (1999) argues that voluntary work is performed neither by feeling of role obligation, which is necessary for survival. Individuals’ integration in the same volunteering activities is prompt by different reasons and one person’s motives to participate may change over time (Finkelstein  and Brannick, 2007). This idea is supported by the Weberian theory, which emphasizes the importance of socioeconomic factors and its role in individuals. Changing the interest toward this factors leads to the changes of volunteers’ actions (Janoski and Wilson, 1995).

Volunteers are individuals who search out the opportunities to help others, but before making the decision whether to volunteer or not, they analyze the amount of time to give, reasons of their involvement, benefits of contributed efforts to others, and satisfaction of personal needs by giving time willingly (Clary et al., 1998). According to some scholars, individuals reasons engaging in service work during the free time can be motivated by different factors as improving skills, abilities and health (Thoits,2013) or for the purposes of career advancement (Peachey et al., 2014). By clear understanding of their contributions and benefits derived from any kind of helping increases the individuals’ commitment and attachment to the organizations (Clary et al., 1998), contrary to these volunteers are demotivated  if the work is unrewarding (Wilson and Musick, 1999). Gidron (1978) argues that in order to keep workers, it is important to fit rewards and ones expectations to each other. Increased social interaction with other volunteers also leads to the continuous participation in voluntary activities (Farmer et al., 2001).Involvement of volunteers in long-term activities’ is primary objective of organizations, as activities performed by volunteers has positive impact on others as well as on volunteers, helping others improves their health and life (Howell et al., 2009; Oostlander et al., 2014). Despite this, Smith (2000) identifies two major benefits of volunteering: (1) economic activities that make an important effort to society and  (2) building a strong community by raising trust between citizens. As a result, decision to volunteer is not made spontaneously rather than after careful analyzes of one’s thoughts (Davis et al., 2003).

Organizations consider that individuals with social, human and cultural capitals are more engaged in volunteering programs and share their resources with others (Manatschal&Freitag, 2014) than  non-volunteers ( Choi & Kim, 2011). Choi and DiNitto (2012) unified these capitals in integrated theory of volunteering. Where, human capital includes individuals’ sources and desire to invest them in valuable asset. Indicators of human capital are amount of skills a person has, to perform different activities, availability of time, income and education. Cultural capital includes individuals’ motivations and weather this motivation is truly altruistic, nor caused by individuals sense of moral obligations or social responsibility. Social capital analyzes the level of trust between pupil, pupil & volunteer nor volunteer & organization. Aim of the social capital is to enhance relationship between individuals. Based on the Putnams (2000) book analyzes “Bowling Alone: The collapse and Revival of American Community”, he describes an individual’s connection with each other as a social capital and how 4 consisting factors of social capital: Increased pressure of time and money, mobility, changing the concept of traditional family and new technologies decline voluntary work. To sum up, difficulties in social capital has negative impact on individuals as well as on country, as it leads to the depression, guilt and other social problems.

Herzberg’s motivation-hygiene theory analyzes individuals satisfaction as an intrinsic and dissatisfaction as an extrinsic rewards. Satisfied individuals are more attached to organizations, while dissatisfied workers are also motivated, but attitude toward organization or work performed by them is opposite from satisfied individuals (Herzberg, 1966). Following to this, Lindenberg (2001) characterizes the intrinsic motivation as an enjoyment derived from performing any activity, the more functions an activity serves the more it is enjoyable and individuals are more intrinsically motivated to engage in volunteering activity for the satisfaction of personal and others need, while another intrinsic motivation driven by individuals’ feeling of obligation arises the potential volunteers pleasant and a positive feelings toward themselves, expressed by feeling of being valuable to help others,  toward organizations expressed by continuous involvement and participation in activities. Moreover, Gidron (1978) analyzes the extrinsic and intrinsic factors of motivation, and lists 5 categories of extrinsic rewards: (1) Learning and self-development (2) social interaction with others (3) recognition (4) praise and (5) authority. Intrinsic rewards include (1) self-development (2) social recognition (3) fulfilling of needs (4) social responsibility. Others also emphasize their researches on individuals’ motivations to volunteer; according to the Finkelstein (2009) intrinsic motivation is meant a individuals motive to express self-identity, that is measured by moral duty and by attitudes toward the work or an organization(Fiorillo, 2011). In addition to that, Those who are intrinsically motivated to perform any job are more concentrated on how to express identity or values (Wilson and Musick, 1999). Value expressive volunteer motivation is positively related to volunteering (Penner and Finkelstein, 1998).

Emergence of another model provide a more comprehensive  understanding of individuals’ motivation to continuous involvement in volunteering activities is defined by Voluntary Functional Inventory (Clary et al. 1998), based on which six motives served through volunteering are:(1) career – individuals seeking to advance work environment, find out a new job opportunity or obtain career-related skills ,knowledge or any other benefit (2) esteem – increasing individuals esteem (3) social –means to enhance trust and relationship within people, as according to the Gil et al (1998) volunteering may offer opportunity to be with one’s friends (4) protective – escaping from negative feelings that may be driven by ego (Gil et al., 1998)(5) understanding – means participating in different activities to satisfy the needs related to knowledge improvement, development of skills and experiences (6) value – mean individuals beliefs of contributed efforts necessity in helping others. This model evaluates the initial motives of individuals and their retention. According to the Volunteer Functional Inventory (VFI) people volunteer in order to satisfy several needs (Finkelstein, 2009) and if their needs are satisfied by performing different volunteering activities and services, than they continue to donate time more frequently with increased quantity (Peachey et al., 2014). In addition to that, volunteers’ continuous participation partially depends on the person-situation fit which indeed leads their strong attachment to the organization and volunteering (Gil et al., 1998).

Age: Average age for participation in volunteering work is 44 (Davis, Hall and Meyer, 2003). While research of Tang, Morrow-Howell and Choi (2010) resulted that at the age of 73, people were still participating in volunteering works.  However, after the age of 41-50, people’s intention to perform a volunteering work is decreasing (Fiorillo, 2011), different reasons are provided for the analyzes of volunteering work decrease, Wilson and Musick (1997) argues that decline of helping behavior in elder people is because of their health problems. the Wilson (2000) provides a reason of decreasing volunteering work is aging, as people age their human capital changes, which results changes of attitudes toward volunteering. Contrary to this result Janoski et al., (1998) argues that volunteering rises with age.  Between 18-to 34-year age people are motivated to engage in volunteering work by the self-oriented motivation ( McLennan and Birch, 2008)

Gender: Females involvement in volunteering is higher (Choi and DiNitto, 2012; Wilson and Musick, 1997), than men (Vaillancourt, 1987). The main reason for women high willingness to involve in unpaid work is because of their feeling of responsibility as a being a mother (Wilson and Musick, 1999; 1997).Marital status is important while performing an unpaid work, according to the Fiorillo (2011) those who are divorced/widowed are devoting most of their time to involve themselves in volunteering work, than in any paid work (Fiorillo, 2011) in addition to that, single women do more volunteer work and single men do less volunteer work than married couples (Vaillancourt, 1987).  Contrary to this Wilson (2000) argues, that married people are more likely to volunteer than single people. In conclusion, Wymer and Samu (2002) findings summarize that difference exists in gender amount and nature of volunteering and each organization should understand the affects of female and male involvement in volunteering activities.

Education: Number of hours devoted to volunteering can be defined by the one’s level of education (Choi and DiNitto, 2012), research of Wilson and Musick (1999) shows that highly educated people devote more time to volunteering activities, they also are those volunteers, who continue to perform activities without expectations to get paid, because they believe that their work is necessary. However, according to the research conducted by Morrow-Howell, Hong and Tang (2009) those who perform unpaid work are highly educated people, more specifically, level of education probability of volunteering is higher with the higher level of education. Contrary to this, unemployed and retired people show high level of willingness and participation in voluntary work, as they have more time to devote their effort for free (Fiorillo, 2011).

Income: Individuals with higher incomes are less involved in volunteering activities than thus with lover income (Choi and DiNitto, 2012), Contrary to this, some authors argue that thus with higher income are more intended to engage in themselves in unpaid work (Marx, 2000). In contrast, Voicu and Voicu (2009) and Tang et al., (2010) suggests that income is significantly positively related to the volunteering.

In both of the helping behavior social, human and cultural capitals has significant impact on individuals (Choi and DiNitto, 2012). While Adolf (2009) argues that social capital is the only capital influencing on individuals while financial donation or volunteering. Some of the authors analyze past experience impact on volunteers future involvement in activities, they argue that those who already performed any volunteer activity are more intended to donate money to charitable organizations (Marx, 2000, Choi and DiNitto, 2012). This finding is in alignment with previous studies emphasizing the importance of financial donation and volunteering, both types of charitable giving is partially similar to each other, as both of them show the strong influence of past behavioral experience and role identity (Lee et al., 1999). Bekkers and Wiepking (2007) argue that individuals with financial resources and free time are willing to donate both of them to charitable organizations for the production of public good (Duncan, 1999), he argues that time and money are “perfectly substitutable in equilibrium”. .  

Lee and Chang (2007) conducted a research about financial donation and volutneering. According to their analyzes of demographical factors, married people in both of the charitable giving were intended to demonstrate a high interest, the only 2 difference revealed in their studies, first is income, which in case of volunteering as a negative impact, while it is positively related in financial donation. considering the psychographic variables, empathy has positive impact on donation of money and volunteering. Second is age, as in volunteering younger people are more active to participate in volunteering  activities, while in financial donation, older people donate more money than younger’s.

To the further discussion, other than demographical factors, that influence monetary donation and volunteering, trust, attitudes toward organizations has a significant impact while involving in both type of helping behavior (Sargeant et al., 2006). Individuals who demonstrate emotional stability and empathic motivation, at the same time with higher level of education are more likely to engage in both types of charitable giving (Bekker, 2010b).

In this section will be analyzed theories that determine the individuals’ behavior and motives for performing either financial donation or volunteering. Those individuals who perform both types of charitable giving are involved in moral behavior (Reed II, Aquino and Levy, 2007). According to the Omoto and Snyder (1995) volunteering is explained by theories of reasoned action and planned action developed by Fishbein and Ajzen (1975). Fihsbein and Ajzen (1875) argue that theory of planned behavior is the extension of the theory of reasoned action. That deals with the individuals’ attitudes toward organization that may determine the one’s strong desire toward helping and intention to involve in helping behavior.  Strong intention of involvement in different activities for the aim of benefiting others as well as themselves influences the individuals’ performance and desire to repeated participation in activity (Ajzen, 1991).  Bagozzi (1992) analyses the theories of attitude by combining the theories of reasoned action, planned behavior and theory of trying. Bagozzi (1992) argues that attitudes, subjective norms and intentions are central elements in the explanation of individuals’ action. Contrary to this, Wicker (1969) argues that attitudes do not have influence on individuals’ behavior.  As volunteers perform activities in organizations, it is reasonable to assume that attitudes toward the organization are dominant factor that influences individuals’ behavior to participate in volunteering activity in future (Penner 2002).Core point of planned behavior is that people make decisions accurately by analyzing all the factors (Fuertes, Vecina and Leon, 2007), Armitage and Corner (2001) claim that theory of planned behavior is a predictor of consumer’s intentions and behavior.  

Another theory analyzing the individuals’ moral behavior is identity theory and socio cognitive theory. The term “identity” is analyzed by several philosophers, sociologists and psychologists but the each of the analyses refers to the different ideas. Marcia (1980) mentions early definitions of identity, as a “sense”, an “attitude”, and he describes it as an internal self-structure, that includes variety of different abilities and beliefs that raises awareness in individuals about their strengths, weaknesses and abilities to perform any activity. Ongoing question regarding the individuals’ moral self is most commonly analyzed by the identity theory. According to which, before performing any activity humans analyze consistence of their goals and actions with the interaction to the environment, understanding the self-importance in any activity, encourages individuals to behave

so, that benefits others as well as matches to their identity meanings. When individuals’ are unable to identify themselves in activities they experience negative emotions that demotivate them to participate again in activity.  Contrary to this idea, Fuertes et al. (2007) argues that, individuals continuous participation in helping behavior can be described by the role identity model. According to the Finkelstein (2009) thus who engage in volunteer work because of role identity are motivated by intrinsic motives.  Individuals’ moral identity is associated with certain beliefs, attitudes and behavior (Cheryan and Bodenhausen, 2000) that leads to their behavior (Stets and Carte, 2011). Humans differ according to their personal characteristics and they assume them as essential attributes of personality, but identity is what directs their life, provides reasons and influences them while making the decision regarding the any activity. As Blasi (1993) mentions, identity is the core part of individuals thinking and it is one’s ideal self.  According to the Aquino et al. (2007)  individuals with higher self-important moral identity prefer to volunteer than donate money, as their organizational status is low and they have enough time to contribute their effort for the wellbeing of others, in addition to that, individuals recognize that giving time is more self-expressive than giving money. In line with this (Reed II, Aquino and Levy, 2007) while giving time individuals are directly involved with recipients and they are more influenced by self. Because of that fact, monetary donation is considered as an indirect form of helping, where self identity is less involved. During volunteering individuals contribute many behavioral and psychological efforts to provide a social benefit to others than while donating money. Theodorakis (1994) research is only one study which analyzed and assessed the role of self-identity, intention and behavior in planned behavior theory, he argues that individuals strong intention and perceived behavioral control increases their involvement in activities. As a conclusion, Role identity and past volunteering experience motivates individuals to continuous participation (Grube, Piliavin, 2000). Several studies have supported this idea, that past behavior determines one’s intention and behavior (Conner & Armitage, 1998). According to the research conducted by Smith and McSweeney (2007) shows that, one’s past experience in charitable giving, increase perception of being valuable and believe of their effort contribution for well being of other is necessary, positive attitudes toward the behavior and strong belief of personal obligation increases the individuals engagement in charitable giving.  The most common approach to explore moral behavior is socio-cognitive model, in which knowledge is accumulated through cognitive processes of information (Bandura, Barbaranelli, Caprara, & Pastorelli, 1996), where self-efficacy plays significant role (Bandura, 2001). Another author argues that individuals’ charitable behavior can be understood by the cognitive abilities. Declining the cognitive abilities in older people leads to the decreased participation in charitable giving (Wiepking and James III, 2013).

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