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The Impact Of Government Funding On Private Contributions To Nonprofit Performing Arts Organizations

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  • Thomas More Smith

Abstract

ABSTRACT**: This paper tests the crowding‐out hypothesis for a balanced panel of nonprofit performing arts organizations between 1998 and 2003. This research uses a number of model specifications and estimating techniques to appropriately capture the relationship between government grants and private donations. Under alternative specifications, the relationship between government grants and private donations suggests crowding‐in between $0.14 and $1.15. The crowd‐in relationship does change according to art type: symphony orchestras and music companies experience a modest crowd‐in while dance and ballet companies experience a small crowd‐out. Although the crowd‐in falls to zero under the strictest condition, there is a lack of evidence of crowd‐out for nonprofit performing arts organizations as a group.

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  • Thomas More Smith, 2007. "The Impact Of Government Funding On Private Contributions To Nonprofit Performing Arts Organizations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(1), pages 137-160, March.
    • Handle: RePEc:bla:annpce:v:78:y:2007:i:1:p:137-160
    DOI: 10.1111/j.1467-8292.2007.00329.x
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    2. Teresa D. Harrison & Daniel J. Henderson & Deniz Ozabaci & Christopher A. Laincz, 2023. "Does one size fit all in the non‐profit donation production function?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(2), pages 373-402, April.
    3. Mirela KOCI, 2017. "Stress Analysis of Composite Materials Used for Yacht Production Through Solid Work Simulation," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 3, September.
    4. Lauren Schmitz, 2012. "Do Cultural Tax Districts Buttress Revenue Growth for Budding Arts Organizations?," SCEPA working paper series. 2012-1, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    5. Frank Fernandez & Xiaodan Hu & Mark Umbricht, 2023. "Examining Wyoming’s Endowment Challenge Program: A Synthetic Control Analysis," Research in Higher Education, Springer;Association for Institutional Research, vol. 64(5), pages 654-674, August.
    6. Angela Besana & Annamaria Esposito, 2019. "Fundraising, social media and tourism in American symphony orchestras and opera houses," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 54(2), pages 137-144, April.
    7. Chiara Leardini & Gina Rossi & Stefano Landi, 2020. "Organizational Factors Affecting Charitable Giving in the Environmental Nonprofit Context," Sustainability, MDPI, vol. 12(21), pages 1-11, October.
    8. Niksa Alfirevic & Jurica Pavicic & Liljana Najev Cacija, 2014. "Performance Of Non-Profit Organizations: Empirical Contrasts Between Privately And Publicly Funded Croatian Humanitarian Organizations," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 59(200), pages 115-130, January –.

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