A Giving Society
Just Giving recently held its annual awards ceremony showcasing fantastic fundraising achievements and truly astounding examples of commitment and perseverance (http://www.marathonmad105.com/). These feats rely both on the fundraisers’ gifts of time and effort and on the money pledged by inspired donors, together motivated by a range of fantastic causes.
The UK Government is looking to better understand how it can inspire more people to give freely time and money, and in the process to develop a “Big Society”. This is the subject of the current Giving Green Paper, published along with a series of informing essays which are well worth a read.
Broadly the paper outlines three potential catalysts for a more giving society:
• Decentralisation of state power and removal of red tape
• New technology platforms — such as JustGiving’s innovative online platform
• Learning from behavioural science
Although some question the motivations behind the Big Society project, few would argue against the basic principle of encouraging people to contribute more to society, be it through the state in taxation, directly to causes in the form of time and money, or through ethical purchasing. From this perspective — examining the motivations behind peoples decisions to give — I welcome the paper as an opportunity to explore insights that can help unlock generosity and the contributions individuals can make to wider society.
From a background in psychology, I’m particularly drawn to study in from this discipline and the emerging field of behavioural economics. David Halpern has been recently drafted in to head up the Government’s behavioural insight team and shares some of the latest views from these fields in his essay accompanying the Giving Green Paper.
Giving makes us happy — “For it is in giving that we receive”
While this is not a new insight from a religious or philosophical perspective, Halpern draws attention to the work of Elizabeth Dunn of British Columbia, whose research demonstrates that the more people donate to charitable causes, the higher their reported wellbeing — regardless of their actual income. This was supported by a case study of employee bonuses, and experiments where participants were allocated to spend windfalls either on others or themselves. Notably in both cases the size of a bonus did not impact the result.
The reciprocal benefits of volunteering are more tangible — valuable experiences and social connections. It is therefore less surprising that studies have shown that volunteering is associated with increased life satisfaction, both among volunteers and in the communities around them.
Positive Externalities — better for all
Recent research has also shown that giving makes those around the giver happier, or in the language of economics, has a positive externality. This is in contrast to increasing income and consumption. For example, earning more and buying a shiny new car may make one feel better in the short term but will leave your neighbours feeling worse off. Increased levels of giving may have an impact on a society’s happiness that traditional conceptions of economic activity do not.
Selfish giving and showing off
In his informing essay, Geoffrey Miller applies the utilitarian lens of Evolutionary Psychology to argue that apparent altruism is used as a signal of social status, moral prestige and reputation — put simply, it makes for an attractive mate. In this way giving operates much like other consumptive displays of wealth. One implication of this is that people are more prone to displays of giving rather than concerns over the efficacy of their chosen charity. This is an important point to note and stresses a need to put systems in place to measure and report publicly on organisations’ efficacy in meeting stated social objectives and to ensure giving has a positive impact.
I’ll have what Norm’s having
Both Halpern and Miller point to the power of social norms to shape our behaviour. When people give publicly to a cause then it in turn inspires others to give. By finding opportunities to celebrate and recognise peoples’ giving, and more generally positive behaviour, then social norms can be created around this.
Debates around the role of the state will undoubtedly continue. In the meantime these insights reveal how giving is good, having both obvious and more subtle benefits as well as suggesting interventions that can promote giving and improve social outcomes. Importantly, understanding that giving can be as much about the giver as the cause highlights the need to ensure positive outcomes are measured and demonstrated.
