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Empirical Relations Between Government Spending and Charitable Donations

• Steinberg, Richard

Abstract

One might expect that increased governmental social-service expenditures would reduce charitable donations, but the direction and magnitude of this effect is theoretically indeterminate. Empirical estimates of this "crowdout" phenomenon are produced from British time-series data. Results suggest that a dollar of governmental social-service expenditures "crowds out" only about one-half cent of charitable donations. This implies that governmental cutbacks will not be largely replaced by charitable donations, a result consistent with most previously published studies.

Journal

Nonprofit and Voluntary Sector Quarterly

(April 1985)
vol14 no2 pages54-64

Categories

1. Nonprofit Management  
2. Financial Planning and Management  

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