Does Virtual Reality Increase Charitable Giving? An Experimental Study

Abstract

Non-profit organizations recently started to use virtual reality (VR) technology to inform the public about their causes, and for fundraising. It is assumed that 360° videos experienced with VR devices create empathy and understanding, and may increase donations. In this study, we test the new VR technique in a controlled lab experiment with real financial decisions. Subjects first perform a real effort task to earn money. Next, using a head-mounted display, subjects experience a 360° video of the destroyed city of Aleppo. Finally, subjects can donate to a local organization helping refugees. We find, compared to a written ask treatment, VR increases both the percentage of givers and the donated amount; women’s decisions mainly drive the differences. A control treatment showing the same 360° video on a flat monitor is not as effective as the VR condition.