The charity capacity curse

Can displays of charity capacity cues paradoxically harm charities' fundraising efforts? Six pre-registered studies provide evidence of a charity capacity curse whereby donors penalize charities for displaying capacity cues, such as human resources capacity, organizational capacity, and financial capacity cues. This curse occurs because donors perceive higher-capacity charities as needing less help. As donors typically donate based on need, they donate less to charities with superior capacity signals. This effect is attenuated when: (1) higher-capacity charities' needs are made salient, and (2) donors reflect on how their decision impacts end-beneficiaries. This research contributes to the literature on effective altruism and charity perceptions while offering managerial insights for charities seeking to optimize their fundraising communications.