Cash transfer narratives and charitable giving

Each respondent is asked to read about a nonprofit organization operating in Nairobi, Kenya, East Africa. We randomly assign the description of the nonprofit organization:

i) Poverty Alleviation Organization message: “The goal of the Poverty Alleviation Organization is to alleviate poverty and reduce financial hardship among the poor. This organization believes that people living in poverty should be given income support to help them meet their basic needs. This organization aims to help promote a decent standard of living among the poor and help them deal with emergencies. Thus, the Poverty Alleviation Organization gives financial assistance to people to help them make ends meet. For example, with the financial assistance, people might be able to struggle less to afford basic needs, like paying off debts, paying rent, and buying clothes and food. Towards that mission, this nonprofit gives one-time transfers of financial assistance to people in urban slums in Nairobi, Kenya, East Africa. They give each recipient $4 USD (about two days wages) in cash. These program recipients are people who live on less than $2 per day, and half of recipients have no savings.”

ii) Individual Empowerment Organization message: “The goal of the Individual Empowerment Organization is to promote individuals’ potential to create a better future for themselves. The organization believes that individuals are wise and know best how to help themselves become self-reliant if they have the financial resources to do so. This organization aims to empower individuals to pursue their personal interests and create their own path to independence. Thus, the Individual Empowerment Organization gives financial resources to individuals to enable them to invest in their personal goals. For example, people might use their unique talents to start a self-run business, invest in job training courses, or
create art. Towards that mission, this nonprofit gives one-time transfers of financial resources to people in urban slums in Nairobi, Kenya, East Africa. They give each recipient $4 USD (about two days wages) in cash. These program recipients are people who live on less than $2 per day, and half of recipients have no savings.”

iii) Community Empowerment Organization message: “The goal of the Community Empowerment Organization is to enable people to help promote better futures for those they care about and want to support most. The organization believes that people know best how to support each other and grow together if they have financial resources to do so. This organization aims to empower people to improve their own lives and those of the people and communities they care about most. Thus, the Community Empowerment Organization gives financial resources to community members to enable them to contribute positively to the lives of people important to them. For example, when people can invest in themselves, they are better able to expand employment opportunities for others, provide valuable services to their community, or teach others, including children, useful skills and knowledge. Towards that mission, this nonprofit gives one-time transfers of financial resources to people in urban slums in Nairobi, Kenya, East Africa. They give each recipient $4 USD (about two days wages) in cash. These program recipients are people who live on less than $2 per day, and half of recipients have no savings.”

2018-12-15

2018-12-16

Donation (Amount out of a $100 lottery payout)

We randomly assign people to receive one of the three messages described above in the "Intervention" section.

Computer

Individual

No

N/A

1,478 respondents

N/A

To achieve power of 80% for an estimated effect size of 0.20 SD on our primary analyses, the required sample size is 1,182 participants, with 394 in each of the treatment arms. Estimating that our comprehension checks will exclude 20% of participants, we will recruit 1, 478 = 1, 182/0.8 participants.

U1_PAP_Lodged.pdf

How can governments and nonprofits design aid programs that afford dignity and facilitate beneficial outcomes for recipients? We conceptualize dignity as a state that manifests when the stigma associated with receiving aid is countered and recipients are empowered, both in culturally resonant ways. Yet materials from the largest cash transfer programs in Africa predominantly characterize recipients as needy and vulnerable. Three studies examined the causal effects of alternative aid narratives on cash transfer recipients and donors. In study 1, residents of low-income settlements in Nairobi, Kenya (N = 565) received cash-based aid accompanied by a randomly assigned narrative: the default deficit-focused “Poverty Alleviation” narrative, an “Individual Empowerment” narrative, or a “Community Empowerment” narrative. They then chose whether to spend time building business skills or watching leisure videos. Both empowerment narratives improved self-efficacy and anticipated social mobility, but only the “Community Empowerment” narrative significantly motivated recipients’ choice to build skills and reduced stigma. Given the diverse settings in which aid is delivered, how can organizations quickly identify effective narratives in a context? We asked recipients to predict which narrative would best motivate skill-building in their community. In study 2, this “local forecasting” methodology outperformed participant evaluations and experimental pilots in accurately ranking treatments. Finally, study 3 confirmed that the narrative most effective for recipients did not undermine donors’ willingness to contribute to the program. Together these studies show that responding to recipients’ psychological and sociocultural realities in the design of aid can afford recipients dignity and help realize aid’s potential.

Thomas, C. C., Otis, N. G., Abraham, J. R., Markus, H. R., & Walton, G. M. (2020). Toward a science of delivering aid with dignity: Experimental evidence and local forecasts from Kenya. Proceedings of the National Academy of Sciences, 117(27), 15546-15553.

https://www.pnas.org/content/117/27/15546.short