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Individual Preferences Over Development Projects: Evidence from Microlending on Kiva

Abstract  

Peer-to-peer microfinance connects philanthropic citizens with poor entrepreneurs in the developing world, offering new ways
to channel charitable contributions. Although the literature suggests that donors’ perceptions of effectiveness affect charitable
giving, very little is known about what types of projects individuals perceive as more effective. Using data from Kiva.org,
this article presents evidence on the relative popularity of competing development projects. We present estimates of the impact
of publicly visible project characteristics on funding speed. Assuming that Kiva lenders are motivated by poverty alleviation,
the results shed light on individual philanthropists’ perception of project effectiveness. Knowing this can help practitioners
design fundraising strategies more effectively, especially for projects that are inherently less popular.

  • Content Type Journal Article
  • Category Original paper
  • Pages 1-20
  • DOI 10.1007/s11266-011-9255-8
  • Authors
    • Pierre Ly, International Political Economy, University of Puget Sound, 1500 N. Warner St. CMB#1057, Tacoma, WA 98406, USA
    • Geri Mason, School of Business and Economics, Seattle Pacific University, 3307 3rd Avenue West, Seattle, WA 98119, USA
    • Journal Voluntas: International Journal of Voluntary and Nonprofit Organizations
    • Online ISSN 1573-7888
    • Print ISSN 0957-8765
Posted in: Journal Article Abstracts on 01/07/2012 | Link to this post on IFP |
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