Working Papers

ABSTRACT
We show that money donated for material benefits (e.g., tax break) compared to money that is donated for other benefits, would be used in a nonprofit to cover overhead expenses. That is because such money is perceived as tainted and could contaminate the cause. Furthermore, we found that potential donors prefer charities that use materially motivated money to cover overhead expenses. Our results contribute to a large body of research invested on ways to reduce overhead aversion and to a literature examining the moral standards of using tainted money in charitable giving.