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Ideals versus Dollars: Donors, Charity Managers, and Government Grants

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  • Rose-Ackerman, Susan
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    Abstract

    This paper demonstrates how changes in untied, lump-sum government grants or income from unrestricted endowments will affect the behavior of charities operated by managers with s trong philosophical or professional commitments. An increase in such funds will reduce the charity's accountability to private donors and lower its fund-raising activities. The grant will not be spent entire ly on raising the quantity of output. Instead, it will permit the cha rity manager to reduce his or her dependence on the costly solicitati on of donors who do not completely share the manager's preferences. Copyright 1987 by University of Chicago Press.

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Political Economy.

    Volume (Year): 95 (1987)
    Issue (Month): 4 (August)
    Pages: 810-23

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    Handle: RePEc:ucp:jpolec:v:95:y:1987:i:4:p:810-23

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    Web page: http://www.journals.uchicago.edu/JPE/

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    Cited by:
    1. Chumacero, Romulo & Paredes, Ricardo, 2008. "Should for-profit schools be banned?," MPRA Paper 15099, University Library of Munich, Germany.
    2. Steffen Burchhardt & Christoph Starke, 2010. "Target-Group and Quality Decisions of Inequity-Averse Entrepreneurs," FEMM Working Papers 100011, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    3. Ericka Costa & Tommaso Ramus, 2010. "Mission, strategie e valutazione delle performance delle aziende nonprofit in un approccio di stakeholder management," Euricse Working Papers 1007, Euricse (European Research Institute on Cooperative and Social Enterprises).
    4. Bilodeau, M. & Slivinsky, A., 1994. "Rational Nonprofit Entrepreneurship," Cahiers de recherche 94-02a, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
    5. Khanna, Jyoti & Sandler, Todd, 2000. "Partners in giving:: The crowding-in effects of UK government grants," European Economic Review, Elsevier, vol. 44(8), pages 1543-1556, August.
    6. Romano, Richard & Yildirim, Huseyin, 2001. "Why charities announce donations: a positive perspective," Journal of Public Economics, Elsevier, vol. 81(3), pages 423-447, September.
    7. Lorenzo Sacconi, 2002. "The efficiency of the non-profit enterprise: constitutional ideology, conformist preferences and reputation," LIUC Papers in Ethics, Law and Economics 110, Cattaneo University (LIUC).
    8. Christoph Starke, 2010. "Serving the Many or Serving the Most Needy?," FEMM Working Papers 100002, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    9. Harrison, Teresa & Laincz, Chris, 2013. "Nonprofits, Crowd-Out, and Credit Constraints," School of Economics Working Paper Series 2013-5, LeBow College of Business, Drexel University.
    10. Christoph Starke, 2012. "Serving the many or serving the most needy?," Economics of Governance, Springer, vol. 13(4), pages 365-386, December.
    11. Lee, Kangoh, 2008. "Voluntary contributions and local public goods in a federation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 163-176, January.
    12. Ettner, Susan L. & Hermann, Richard C., 2001. "The role of profit status under imperfect information: evidence from the treatment patterns of elderly Medicare beneficiaries hospitalized for psychiatric diagnoses," Journal of Health Economics, Elsevier, vol. 20(1), pages 23-49, January.
    13. Carlo Borzaga & Ermanno Tortia, 2004. "Worker involvement in entrepreneurial nonprofit organizations. Toward a new assessment of workers' perceived satisfaction and fairness," Department of Economics Working Papers 0409, Department of Economics, University of Trento, Italia.

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