Nonprofits have embraced virtual reality (VR), however, scientific evidence supporting its effectiveness for social good often uses poor experimental methodology, and finds inconsistent results. We conduct a rigorous randomized control trial testing whether 360-degree video virtual reality increases empathy and charitable donations. Participants (N=155) were randomly assigned to one of four conditions: 1) Classic VR: 360-degree footage of child refugees, 2) Boost VR: the same, but with perspective-taking instructions, 3) Audiobook: a control condition with the same information about child refugees but in text format, or 4) Waiting Room: another control condition with a 360-degree view of a waiting room. Although the Classic and Boost VR conditions increased emotional empathy compared to controls, they did not improve cognitive empathy more than the audiobook. Moreover, any empathic gains were mostly extinguished after 10 days. Critically, the Classic and Boost VR conditions did not influence charitable donations to a relevant charity (UNICEF).