Warm glow giving

May 16, 2018 04:15 am | Updated 04:15 am IST

Philanthropy

This refers to a theory to explain why people donate money and other gifts to charity. It states that they do so mainly because they feel good about themselves while helping others. This is in contrast to the mainstream view that people donate to charity primarily for the sake of helping other people who are in need of their help. In fact, proponents of this theory argue that donors do not care as much about the impact of their charity on the needy as they do about feeling good about their act of giving. It was first proposed by the economist James Andreoni.

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