We conduct a field experiment on direct and indirect transfer mechanisms. It shows
that people are willing to donate significantly more if the donation is indirect, i.e., it
is tied to the purchase of a good with a price premium, rather than made directly.
This points to an efficiency–effectiveness trade–off: even though indirect donations are
less efficient than direct donations, they are more effective in mobilizing resources. Our
findings hold for ‘Fair Trade’ coffee as well as for ‘normal’ coffee. However, the strength
of the efficiency–effectiveness trade–off is higher in the case of ‘Fair Trade’