The Role of Mental Budgeting in Philanthropic Decision-Making
Department or Administrative Unit
Mental budgeting (also known as mental accounting) has examined how consumers allocate and expend resources. However, the mental budgeting literature has not yet examined the availability and use of mental budgets for philanthropic, as opposed to day-to-day, consumption. Depth interviews with donors in both the United States and Canada reveal that donors do maintain mental budgets for philanthropy, that charitable gifts are expensed against the mental budget for philanthropy as well as against other budgets, and that donors’ mental budgets are malleable. Study findings extend the literature on the management and malleability of mental budgets, and provide insight to nonprofit organizations (NPO) to better position appeals to maximize donations and strengthen long-term donor relationships.
LaBarge, M. C., & Stinson, J. L. (2013). The Role of Mental Budgeting in Philanthropic Decision-Making. Nonprofit and Voluntary Sector Quarterly, 43(6), 993–1013. https://doi.org/10.1177/0899764013489776
Nonprofit and Voluntary Sector Quarterly
© The Author(s) 2013