Poor people are more charitable than the rich?

The concept of crowdfunding is based on the fact that smaller donations from people are more forthcoming than big bucks from one donor. Research also proves that poor people are more likely to donate for charitable causes. Not just one but several studies by researchers at UC Berkeley reached this conclusion.

One experiment led by doctoral student Paul Piff gave all participants $10. They could share this money with stranger. Participants had filled in the information about the socioeconomic status beforehand. They found that people who reported being on lower social rungs were more generous than their richer counterparts.

In another experiment by the same researchers, they found that a person’s experiences with scarcity can shape their giving behavior. Here, participants engaged in an exercise where they decided how people should divide their annual incomes. The various heads to spend the money included food, recreation, charitable donations and other requirements. People on lower rungs of the social ladder assigned a higher percentage to charitable giving.

An interesting takeaway from their experiments was that the rich people are generous under a specific condition. They showed prosocial behavior when the researchers induced a feeling of compassion in the richer people.

“Poor may feel more compassion because they are more connected to those around them, psychologically and socially. They are more dependent on other people to get by, for instance. And, perhaps as a result of that dependency, they display more empathy,” said the researchers.

These findings also reassert a firm belief of all of us at Crowdera. We believe that you don’t need deep pockets to be philanthropists. Each one of us can be generous in our own small way. Come over to our platform, browse through the live campaigns and you can do your bit right now! Or, you could help a friend in need by raising funds to solve their problems.