Giving Time vs. Money: What's More Impactful?

People tend to believe that donating their time is more personally impactful and effective than giving money, according to new research. This perception, however, often disconnects from reality, as studies have demonstrated that monetary donations are typically more cost-effective and achieve a greater impact.

The research highlights that individuals feel a stronger personal connection to their time donations, leading them to perceive it as more meaningful. This subjective feeling can outweigh objective effectiveness, causing people to opt for volunteering even when donating money would yield better results for the cause.

Findings suggest that clearly communicating the high efficiency and impact of financial contributions can significantly influence donor behavior. Nonprofits can leverage this by de-biasing donor perceptions through targeted communications that emphasize the concrete benefits of monetary gifts, thereby potentially increasing overall charitable giving.