The Effect of Trust on Giving: Evidence from Korean-Americans in California

Abstract

Trust in a nonprofit organization is recognized by many scholars as a pivotal function of giving activity. However, there is limited empirical evidence, and it remains unclear how trust influences giving practices. This study empirically examines the effects of trust toward nonprofit organizations on giving among Korean-Americans in California. Based on the Korean-American Philanthropic Survey, regression models are constructed to estimate such effects. The empirical results indicated a strong and positive relationship between trust in nonprofits and giving. Basically, immigrants with a greater stock of trust in nonprofits are more likely to give than their counterparts. In addition, acculturation, age, female, and religiosity are significantly and positively related to giving.