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Green Giving: An Analysis of Contributions to Major U.S. Environmental Groups

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  • Richer, Jerrell

Abstract

Data are compiled from the tax records of 29 major environmental organizations for the period 1980-1994 to identify factors that influence voluntary contributions. I examine the effects of organizational characteristics, such as fundraising expenditures and alternative sources of revenue, along with the impact of general economic conditions and the political climate. I find that government grants to the organizations had a positive and statistically significant impact on voluntary contributions rather than a crowding out effect. Contributions were price inelastic, where the price is defined as the effective cost to the donor of achieving a one-dollar increase in the provision of program services. Resources devoted to fundraising had a strong and positive impact on donations, suggesting that the environmental organizations fell short of maximizing both total and net revenues. Contributions were also affected by factors largely outside of the organizations' control. Increases in the unemployment rate were associated with reductions in giving, while donations are shown to be greater in years when a Republican President was in office.

Suggested Citation

  • Richer, Jerrell, 1995. "Green Giving: An Analysis of Contributions to Major U.S. Environmental Groups," Discussion Papers 10870, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10870
    DOI: 10.22004/ag.econ.10870
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    References listed on IDEAS

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    7. Khanna, Jyoti & Posnett, John & Sandler, Todd, 1995. "Charity donations in the UK: New evidence based on panel data," Journal of Public Economics, Elsevier, vol. 56(2), pages 257-272, February.
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    Cited by:

    1. Julie Hewitt & Daniel Brown, 2000. "Agency Costs in Environmental Not-For-Profits," Public Choice, Springer, vol. 103(1), pages 163-183, April.
    2. repec:kap:iaecre:v:13:y:2007:i:2:p:171-182 is not listed on IDEAS
    3. Debra Israel, 2007. "Charitable Donations: Evidence of Demand for Environmental Protection?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(2), pages 171-182, May.
    4. Parker, Dominic P. & Thurman, Walter N., 2004. "Crowding Out Open Space: The Effects Of Federal Land Programs On Land Trust Activity," 2004 Annual meeting, August 1-4, Denver, CO 20190, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Keywords

    Environmental Economics and Policy;

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