Is the Supply of Charitable Donations Fixed? Evidence from Deadly Tornadoes

Tatyana Deryugina; Benjamin M. Marx

doi:10.3386/w27078

Is the Supply of Charitable Donations Fixed? Evidence from Deadly Tornadoes

Research output: Contribution to journal › Article › peer-review

Abstract

Do natural disasters increase charitable giving or simply reallocate a fixed supply of donations? We study this question using IRS data in the context of deadly tornadoes. We find that, among ZIP Codes located in the same state but more than 20 miles away from a tornado’s path, donations by households increase by about $2 million per tornado fatality. We find no negative effects of tornado fatalities on donations to charities located in these ZIP Codes. The results imply that giving in response to new needs need not come at the expense of other causes.

Original language	English (US)
Journal	American Economic Review: Insights
DOIs	https://doi.org/10.3386/w27078
State	Accepted/In press - 2021

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10.3386/w27078

Cite this

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title = "Is the Supply of Charitable Donations Fixed? Evidence from Deadly Tornadoes",

abstract = "Do natural disasters increase charitable giving or simply reallocate a fixed supply of donations? We study this question using IRS data in the context of deadly tornadoes. We find that, among ZIP Codes located in the same state but more than 20 miles away from a tornado{\textquoteright}s path, donations by households increase by about $2 million per tornado fatality. We find no negative effects of tornado fatalities on donations to charities located in these ZIP Codes. The results imply that giving in response to new needs need not come at the expense of other causes. ",

author = "Tatyana Deryugina and Marx, {Benjamin M.}",

year = "2021",

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language = "English (US)",

journal = "American Economic Review: Insights",

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AU - Deryugina, Tatyana

AU - Marx, Benjamin M.

PY - 2021

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N2 - Do natural disasters increase charitable giving or simply reallocate a fixed supply of donations? We study this question using IRS data in the context of deadly tornadoes. We find that, among ZIP Codes located in the same state but more than 20 miles away from a tornado’s path, donations by households increase by about $2 million per tornado fatality. We find no negative effects of tornado fatalities on donations to charities located in these ZIP Codes. The results imply that giving in response to new needs need not come at the expense of other causes.

AB - Do natural disasters increase charitable giving or simply reallocate a fixed supply of donations? We study this question using IRS data in the context of deadly tornadoes. We find that, among ZIP Codes located in the same state but more than 20 miles away from a tornado’s path, donations by households increase by about $2 million per tornado fatality. We find no negative effects of tornado fatalities on donations to charities located in these ZIP Codes. The results imply that giving in response to new needs need not come at the expense of other causes.

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DO - 10.3386/w27078

M3 - Article

SN - 2640-205X

JO - American Economic Review: Insights

JF - American Economic Review: Insights

ER -

Is the Supply of Charitable Donations Fixed? Evidence from Deadly Tornadoes

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