Crowding-out or crowding-in: The dynamics of different revenue streams

Research output: Chapter in Book / Report / Conference proceedingChapterAcademicpeer-review

Abstract

An important question in public economics is to what extent changes in government funding lead to changes in private donations. In this chapter we identify and summarize four theoretical perspectives answering this question: the micro-economic, institutional-political, institutional signaling, and organizational perspective. Reviewing the empirical support for each perspective, we find that none of the perspectives sufficiently explains the dispersed empirical evidence for the relationship between government financial support and individual philanthropic donations. We argue that the context in which nonprofit organizations operate is a relevant but often overlooked factor that influences how government support affects philanthropic giving. Research in this area should adopt a dynamic perspective, taking into account the dynamics of different nonprofit revenue streams (from governments, businesses, foundations, and households) as well as contextual level factors like the subsector of the nonprofit sector and country characteristics.

Original languageEnglish
Title of host publicationFinancing Nonprofit Organizations
EditorsInigo Garcia-Rodriguez, M. Elena Romero-Merino
PublisherTaylor and Francis AS
Chapter7
Pages83-96
Number of pages14
ISBN (Electronic)9780429265419
ISBN (Print)9780367211042
DOIs
Publication statusPublished - 28 Jan 2020

Publication series

NameRoutledge studies in the management of voluntary and non-profit organizations

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