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The importance of managerial capacity in fundraising: Evidence from land conservation charities

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  • Sieg, Holger
  • Zhang, Jipeng

Abstract

The objective of this paper is to show the importance of incorporating managerial capacity into the empirical analysis of the determinants of donations to charitable organizations. We adopt a production function approach to model the outcome of the fundraising process. The empirical findings suggest that managerial capacity is an important factor determining charitable donations. This finding is qualitatively robust using a variety of different estimation strategies including Olley and Pakes style estimators, dynamic panel data estimators, standard IV estimators, and fixed effects estimators. In contrast, estimates of the two other input factors, fund-raising expenditures and government grants, are sensitive with respect to different identification strategies, sample selection rules, and missing data imputation mechanisms.

Suggested Citation

  • Sieg, Holger & Zhang, Jipeng, 2012. "The importance of managerial capacity in fundraising: Evidence from land conservation charities," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 724-734.
    • Handle: RePEc:eee:indorg:v:30:y:2012:i:6:p:724-734
    DOI: 10.1016/j.ijindorg.2012.08.005
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    Cited by:

    1. Paskalev, Zdravko & Yildirim, Huseyin, 2017. "A theory of outsourced fundraising: Why dollars turn into “Pennies for Charity”," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 1-18.
    2. John A. List & James J. Murphy & Michael K. Price & Alexander G. James, 2019. "Do Appeals to Donor Benefits Raise More Money than Appeals to Recipient Benefits? Evidence from a Natural Field Experiment with Pick.Click.Give," NBER Working Papers 26559, National Bureau of Economic Research, Inc.
    3. Heesun Jang & Hyunhee Kim & Hojeong Park, 2020. "Spatiotemporal analysis of Korean ginseng farm productivity," Journal of Productivity Analysis, Springer, vol. 53(1), pages 69-78, February.
    4. Ziyang Li & Qianwei Ying & Yuying Chen & Xuehui Zhang, 2020. "Managerial risk appetite and asymmetry cost behavior: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(5), pages 4651-4692, December.

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