In fundraising, there’s something called the “warm glow” theory that offers
reason for why people give. While research has suggested that tax benefits,
vested interest in causes and recognition all compel people to donate, it’s the
warm glow—the feeling of doing good—that truly drives the act of giving.
This theory has been extended to the corporate world as well. It is has
been proven that purchasing from companies that act ethically or give
to a cause provides further incentive (warm glow!) to the consumer.
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