Crowding â€“Out and Fundraising Efforts: The impact of government grants on Symphony Orchestras
AbstractThe crowding-out of private donations by government grants is an integral element in designing an efficient method of financing nonprofit activity. This paper looks at elements of crowd-out, both the direct impact on donors and the indirect impact due to the response of nonprofits. We include both a theoretical and empirical analysis of the reactions by donors and nonprofits to an increase in government funding based on data from the League of American Orchestrasâ€™ annual reports from 2004-2007. To combat indirect crowd-out, renewed emphasis should be placed on grant design; for direct crowd-out, theories of collective action are appropriate.
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Bibliographic InfoPaper provided by Saint Cloud State University, Department of Economics in its series Working Papers with number 2012-24.
Date of creation: 2012
Date of revision:
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Crowding-Out; Fundraising; Government Grants; Symphony Orchestras;
Find related papers by JEL classification:
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-30 (All new papers)
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