The response of donors to local crime

Individual charitable donations significantly increase in areas where crime rates are higher. But why should the two be linked? And what does it tell us about the communities who are affected by crime?

The impact of crime on the economy and society is sizable. Financial losses and the costs associated with deterrence, policing and enforcement are around 3% of the UK’s Gross Domestic Product (GDP).

In a new CAGE working paper Local Crime and Prosocial Attitudes: Evidence from Charitable Donations Carlo Perroni, Kimberley Scharf, Sarah Smith, Oleksandr Talavera and Linh Vi analyse the relationship between local crime and the charitable giving of local residents over time.

The team investigated the prosocial behaviour – that which benefits others – of those local residents who were more affected by crime and found some clear links.

Using longitudinal evidence on charitable donations and crime data by UK postcode, they explored the relationship between crime and neighbourhood characteristics such as age, education, political leanings, and mental health indicators.

In the first such study of its kind, their analysis found that female donors give comparatively more than their male counterparts to local charities. Donations made by women increased by more than 1% following occurrences of crime at locations close to their home. When violent or sexual offences took place in the neighbourhood there was an over 2% increase in giving. Donations also rose in postcodes with higher levels of mental distress and specifically to those charities who were society related.

Owing to the sensitive nature of violent and sex crimes it appears that women are motivated the most to increase their charitable giving. This suggests that the fear of crime might affect the behaviour of men and women in different ways.

Although UK crime statistics show that men have a higher risk of being victims of crime, women have a heightened and perceived fear of becoming a victim of certain types of crime (particularly domestic abuse and sexual assault). This can lead to a higher sense of community responsibility and preventative actions such as charitable donations.

Commenting on the findings Professor Perroni said:

“Societal norms may encourage men to suppress their fear, making them less likely to respond to it in the same way that women do.

“Our study has focused on the relationship between local crime and residents’ charitable giving. The difference between the responses of male and female donors has been the most striking, particularly in relation to other factors.

“A plausible explanation for these patterns is that individuals’ vulnerability to crime – be it actual or perceived – varies systematically with their gender. The evidence suggests the need for further research into the triggers for gender differences in donations that extend beyond local crime rates.”

The experience of crime can shape trust, social attitudes, and ultimately social capital. These networks and relationships of people who live and work in particular societies has been shown to be important in determining economic performance.

• Read the full research paper: Local Crime and Prosocial Attitudes: Evidence from Charitable Donations (March 2024)