What Factors Explain Charitable Donation in New Zealand?
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There are 114,110 non-profit organisations in New Zealand (Statistics New Zealand, 2015) and the most recent report by Giving New Zealand announces that total personal giving was $1.53 billion in 2014. To understand why people in New Zealand make monetary donations, this study examines the determinants of individual charitable donation using a sample from New Zealand. I conduct an online survey with 334 participants from Faculty of Business, Economics and Law, Auckland University of Technology. The empirical findings demonstrate that altruism and age have a positive effect on not only the donation amount but also the frequency of making charitable donation. Risk preference positively affect donation amount when people are financially capable. There is no evidence that social factors, such as a desire for public recognition and social reputation, affect donation behaviour. However, females and individuals with lower levels of education donate more frequently. The results of this study have important implications for non-profit organisations to have a better understanding of donors in New Zealand and raise more donation. Specifically, findings of this study may help non- profit organisations to improve their donation campaign and programme designs. Moreover, this study helps people in New Zealand to understand what drive them to make donation decisions.