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Does one size fit all in the non‐profit donation production function?

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Listed:
  • Teresa D. Harrison
  • Daniel J. Henderson
  • Deniz Ozabaci
  • Christopher A. Laincz

Abstract

We attempt to reconcile two puzzles in the non‐profit (NP) literature: (i) studies often find that NPs grossly underspend on fundraising; (ii) crowd‐out effect estimates of government grants on private donations vary widely, suggesting both crowd‐out and crowd‐in. We examine these impacts via a semi‐parametric instrumental variables strategy. We find heterogeneous effects across NPs, fundraising efforts, and government grant intensity. Smaller NPs appear to drive the presence of crowd‐out; estimates for the marginal productivity of fundraising are consistent with leading theories of NP optimizing behaviour.

Suggested Citation

  • Teresa D. Harrison & Daniel J. Henderson & Deniz Ozabaci & Christopher A. Laincz, 2023. "Does one size fit all in the non‐profit donation production function?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(2), pages 373-402, April.
    • Handle: RePEc:bla:obuest:v:85:y:2023:i:2:p:373-402
    DOI: 10.1111/obes.12522
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    References listed on IDEAS

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