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Charitable giving responses to education budgets

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  • Jonathan Meer
  • Hedieh Tajali

Abstract

Do changes in government spending affect voluntary contributions to those recipients? We examine how changes in K‐12 education budgets impact donations to teachers using data from DonorsChoose.org, an online crowdfunding platform for public school teachers to raise money. We find a positive correlation between budgets and voluntary contributions when not accounting for their endogenous relationship. Estimates using instrumental variables show evidence for crowd‐out of private giving, though the magnitudes are small relative to spending and do not meaningfully offset budget changes. These results are driven entirely by teachers' posting of requests.

Suggested Citation

  • Jonathan Meer & Hedieh Tajali, 2025. "Charitable giving responses to education budgets," Economic Inquiry, Western Economic Association International, vol. 63(3), pages 865-887, July.
    • Handle: RePEc:bla:ecinqu:v:63:y:2025:i:3:p:865-887
    DOI: 10.1111/ecin.13286
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    3. Hedieh Tajali & Piruz Saboury, 2025. "Why give if others will? Evidence of crowd-out in a crowdfunding platform," Edinburgh School of Economics Discussion Paper Series 322, Edinburgh School of Economics, University of Edinburgh.

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    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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