Government Subsidies to Non-profit Organisations and its Impact on Private Donations: Regional and Subsector Models
DOI:
https://doi.org/10.4335/15.2.283-301(2017)Keywords:
Crowding in, Crowding out, Non-profit Organization, Non-profit Funding, Public Subsidies, Regionalism, SubsectorAbstract
Government subsidies to the non-profit sector are a significant source of income for non-profit organisations. One significant impact of these subsidies is on the changing scope of private giving. The objective of this paper is to use a regression model to test whether government funding in the Czech Republic encourages private gifts and large amounts of government funding discourages gifts. However, rather than focusing on aggregate data sources, this study examines how these impacts vary among regions and sub-sectors. These models help explain why studies conducted in the past frequently differed and were inconsistent in their findings.
References
Abrams, B. A. & Schitz, M. D. (1978) The ‘crowding-out’ effect of governmental transfers on private charitable contributions, Public Choice, 33(1), pp. 29–39, doi: 10.1007/s11127-009-9492-1.
Alexander, L. (1997) The civic entrepreneur: fixing American giving, National Civic Review, 86, pp. 287–290, doi: 10.1002/ncr.4100860405.
Andreoni, J. (2004) Philanthropy: In: Varet, G., Kolm, S. C. & Ythier, J. M. (eds.) Handbook of giving, reciprocity and altruism (Amsterdam: North Holland).
Andreoni, J. & Payne, A. (2003) Do government grants to private charities crowd out giving or fund raising?, American Economic Review, 93(3), pp. 792–812, doi: 10.1257/000282803322157098.
Andreoni, J. & Payne, A. (2011) Is crowding out due entirely to fundraising? Evidence from a panel of charities, Journal of Public Economics, 95(5-6), pp. 334–343, doi: 10.1016/j.jpubeco.2010.11.011.
Borgonovi, F. (2006) Do public grants to American theaters crowd-out private donations?, Public Choice, 126(3), pp. 429–451, doi: 10.1007/s11127-006-3887-z.
Brooks, A. C. (2000a) Is there a dark side to government support for nonprofit?, Public Administration Review, 60(3), pp. 211–218, doi: 10.1111/0033-3352.00081.
Brooks, A. C. (2000b) Public subsidies and charitable giving: Crowding out, crowding in, or both?, Journal of Policy Analysis and Management, 19(3), pp. 451-464.
Eckel, C. C. & Grossman, P. J. (2004) Giving to secular causes by the religious and nonreligious: an experimental test of the responsiveness of giving to subsidies, Nonprofit and Voluntary Sector Quarterly, 33(2), pp. 271–289, doi: 10.1177/0899764004263423.
Friedman, M. (1980) Free to Choose (New York: Harcourt Brace Jovanovich).
Frumkin, P. (2006) Strategic giving: the art and science of philanthropy (Chicago: University of Chicago Press).
Gittell, R. & Tebaldi, E. (2006) Charitable giving: factors influencing giving in U.S. states, Nonprofit and Voluntary Sector Quarterly, 35(4), pp. 721–736, doi: 10.1177/0899764006289768.
Hladká, M. & Hyánek, V. (2015) Nonprofit sector and charity financing: mapping the field. Littera Scripta, 2, pp. 39–49.
Hladká, M. & Hyánek, V. (2016) Explanation of the donor decision-making process in the czech republic through a combination of influences of individual motives, European Financial and Accounting Journal, 1, pp. 23–37, doi:10.18267/j.efaj.151.
Kingma, B. R. (1989) An accurate measurement of the crowd-out effect, income effect, and price effect for charitable contributions, Journal of Political Economy, 97(5), pp. 1197–1207, doi: 10.1086/261649.
Kitchen, H. (1992) Determinants of charitable donations in Canada: a comparison over time, Applied Economics, 24(7), pp. 709–713, doi: 10.1080/00036849200000039.
Lammam, Ch. & Gabler, N. (2012) Determinants of charitable giving: A review of the literature (Vancouver: Fraser Institute).
Laurie, M. (1994) Corporate Funding for the Arts, In: Robinson, O. (ed.) The arts in the world economy (Hanover, NH: Salzburg Seminar).
Lloyd, T. (2004) Why rich people give (London: Association of Charitable Foundations).
Odendahl, T. J. (1990) Charity Begins at Home: Generosity and Self-Interest Among the Philanthropic Elite (New York: Basic Books).
Prouzová, Z. (2015) Přímé a nepřímé financování soukromých neziskových organizací z veřejných rozpočtů České republiky v letech 2008 až 2013/ Direct and indirect financing of private non-profit organizations from public budgets in the Czech Republic between 2008 and 2013 (Brno: Masaryk University).
Prouzová, Z. & Špalek, J. (2015) Importance of public funding in the revenue structure of non-profit institutions in the Czech Republic, Proceedings of the 11th International Scientific Conference Public Economics and Administration. Ostrava: Vysoká škola báňská - Technická univerzita Ostrava, Ekonomická fakulta, pp. 160–165.
Salamon, L. M. & Anheier, H. K. (eds.) (1997) Defining the nonprofit sector: A cross-national analysis (Manchester: University Press).
Schiff, J. (1985) Does government spending crowd out charitable contributions?, National Tax Journal, 38, pp. 535–546.
Schneider, J. C. (1996) Philanthropic styles in the United States: toward a theory of regional differences, Nonprofit and Voluntary Sector Quarterly, 25(2), pp.190–210, doi: 10.1177/0899764096252004
Simmons, W. & Emanuele, R. (2004) Does government spending crowd out donations of time and money?, Public Finance Review, 32(5), pp. 498–511, doi: 10.1177/1091142104264364.
Smith, T. M. (2007) The impact of government funding on private contributions to nonprofit performing arts organizations, Annals of Public and Cooperative Economics, 78(1), pp. 137–160, doi: 10.1111/j.1467-8292.2007.00329.x.
Steuerle, C. E. & Hodgkinson V. A. (2006) Meeting social needs: Comparing independent sector and government resources, In: Boris, E. T. & Steuerle, C. E. (eds.) Nonprofits & government: collaboration & conflict (Washington, DC: The Urban Institute Press), pp. 81–106.
Svoboda, F. (2010) Ekonomika daru, dar a jeho reflexe v ekonomické teorii/ Gifts economy and its reflection in economics, Politická ekonomie, 58(1), pp. 103-127, doi: 10.18267/j.polek.722.
Alexander, L. (1997) The civic entrepreneur: fixing American giving, National Civic Review, 86, pp. 287–290, doi: 10.1002/ncr.4100860405.
Andreoni, J. (2004) Philanthropy: In: Varet, G., Kolm, S. C. & Ythier, J. M. (eds.) Handbook of giving, reciprocity and altruism (Amsterdam: North Holland).
Andreoni, J. & Payne, A. (2003) Do government grants to private charities crowd out giving or fund raising?, American Economic Review, 93(3), pp. 792–812, doi: 10.1257/000282803322157098.
Andreoni, J. & Payne, A. (2011) Is crowding out due entirely to fundraising? Evidence from a panel of charities, Journal of Public Economics, 95(5-6), pp. 334–343, doi: 10.1016/j.jpubeco.2010.11.011.
Borgonovi, F. (2006) Do public grants to American theaters crowd-out private donations?, Public Choice, 126(3), pp. 429–451, doi: 10.1007/s11127-006-3887-z.
Brooks, A. C. (2000a) Is there a dark side to government support for nonprofit?, Public Administration Review, 60(3), pp. 211–218, doi: 10.1111/0033-3352.00081.
Brooks, A. C. (2000b) Public subsidies and charitable giving: Crowding out, crowding in, or both?, Journal of Policy Analysis and Management, 19(3), pp. 451-464.
Eckel, C. C. & Grossman, P. J. (2004) Giving to secular causes by the religious and nonreligious: an experimental test of the responsiveness of giving to subsidies, Nonprofit and Voluntary Sector Quarterly, 33(2), pp. 271–289, doi: 10.1177/0899764004263423.
Friedman, M. (1980) Free to Choose (New York: Harcourt Brace Jovanovich).
Frumkin, P. (2006) Strategic giving: the art and science of philanthropy (Chicago: University of Chicago Press).
Gittell, R. & Tebaldi, E. (2006) Charitable giving: factors influencing giving in U.S. states, Nonprofit and Voluntary Sector Quarterly, 35(4), pp. 721–736, doi: 10.1177/0899764006289768.
Hladká, M. & Hyánek, V. (2015) Nonprofit sector and charity financing: mapping the field. Littera Scripta, 2, pp. 39–49.
Hladká, M. & Hyánek, V. (2016) Explanation of the donor decision-making process in the czech republic through a combination of influences of individual motives, European Financial and Accounting Journal, 1, pp. 23–37, doi:10.18267/j.efaj.151.
Kingma, B. R. (1989) An accurate measurement of the crowd-out effect, income effect, and price effect for charitable contributions, Journal of Political Economy, 97(5), pp. 1197–1207, doi: 10.1086/261649.
Kitchen, H. (1992) Determinants of charitable donations in Canada: a comparison over time, Applied Economics, 24(7), pp. 709–713, doi: 10.1080/00036849200000039.
Lammam, Ch. & Gabler, N. (2012) Determinants of charitable giving: A review of the literature (Vancouver: Fraser Institute).
Laurie, M. (1994) Corporate Funding for the Arts, In: Robinson, O. (ed.) The arts in the world economy (Hanover, NH: Salzburg Seminar).
Lloyd, T. (2004) Why rich people give (London: Association of Charitable Foundations).
Odendahl, T. J. (1990) Charity Begins at Home: Generosity and Self-Interest Among the Philanthropic Elite (New York: Basic Books).
Prouzová, Z. (2015) Přímé a nepřímé financování soukromých neziskových organizací z veřejných rozpočtů České republiky v letech 2008 až 2013/ Direct and indirect financing of private non-profit organizations from public budgets in the Czech Republic between 2008 and 2013 (Brno: Masaryk University).
Prouzová, Z. & Špalek, J. (2015) Importance of public funding in the revenue structure of non-profit institutions in the Czech Republic, Proceedings of the 11th International Scientific Conference Public Economics and Administration. Ostrava: Vysoká škola báňská - Technická univerzita Ostrava, Ekonomická fakulta, pp. 160–165.
Salamon, L. M. & Anheier, H. K. (eds.) (1997) Defining the nonprofit sector: A cross-national analysis (Manchester: University Press).
Schiff, J. (1985) Does government spending crowd out charitable contributions?, National Tax Journal, 38, pp. 535–546.
Schneider, J. C. (1996) Philanthropic styles in the United States: toward a theory of regional differences, Nonprofit and Voluntary Sector Quarterly, 25(2), pp.190–210, doi: 10.1177/0899764096252004
Simmons, W. & Emanuele, R. (2004) Does government spending crowd out donations of time and money?, Public Finance Review, 32(5), pp. 498–511, doi: 10.1177/1091142104264364.
Smith, T. M. (2007) The impact of government funding on private contributions to nonprofit performing arts organizations, Annals of Public and Cooperative Economics, 78(1), pp. 137–160, doi: 10.1111/j.1467-8292.2007.00329.x.
Steuerle, C. E. & Hodgkinson V. A. (2006) Meeting social needs: Comparing independent sector and government resources, In: Boris, E. T. & Steuerle, C. E. (eds.) Nonprofits & government: collaboration & conflict (Washington, DC: The Urban Institute Press), pp. 81–106.
Svoboda, F. (2010) Ekonomika daru, dar a jeho reflexe v ekonomické teorii/ Gifts economy and its reflection in economics, Politická ekonomie, 58(1), pp. 103-127, doi: 10.18267/j.polek.722.
Published
2017-04-26
Issue
Section
Article
