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Corporate Donations to the Arts: Philanthropy or Advertising?

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  • Björn Frank
  • Kurt Geppert

Abstract

This paper is an attempt to provide evidence on two questions: Why do companies sponsor art events, and where exactly does the money go? We analyse data collected on the revenue structure of cultural institutions in Berlin and Hamburg. This data set not only tells us where the money goes, it also allows us to draw conclusions with respect to donors' motives. We regress sponsorships received on the number of visitors and other independent variables. The results are significantly different from those which one would expect if sponsoring were merely a form of advertising.

Suggested Citation

  • Björn Frank & Kurt Geppert, 2002. "Corporate Donations to the Arts: Philanthropy or Advertising?," Discussion Papers of DIW Berlin 307, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp307
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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.38586.de/dp307.pdf
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    References listed on IDEAS

    as
    1. Andreoni,J. & Payne,A.A., 2001. "Government grants to private charities : do they crowd out giving or fundraising?," Working papers 19, Wisconsin Madison - Social Systems.
    2. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, August.
    3. Abbing, Hans, 2002. "Why Are Artists Poor?," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9789053565650, August.
    4. Sen, Amartya Kumar, 1970. "The Impossibility of a Paretian Liberal," Scholarly Articles 3612779, Harvard University Department of Economics.
    5. Sen, Amartya, 1970. "The Impossibility of a Paretian Liberal," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 152-157, Jan.-Feb..
    6. Mark LeClair & Kelly Gordon, 2000. "Corporate Support for Artistic and Cultural Activities: What Determines the Distribution of Corporate Giving?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(3), pages 225-241, August.
    7. John O'Hagan & Denice Harvey, 2000. "Why Do Companies Sponsor Arts Events? Some Evidence and a Proposed Classification," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(3), pages 205-224, August.
    8. Gordon Hughes & David Vines., "undated". "Deregulation and the Future of Commercial Television," Hume Papers 12, David Hume Institute.
    9. Orace Johnson, 1966. "Corporate Philanthropy: An Analysis of Corporate Contributions," The Journal of Business, University of Chicago Press, vol. 39, pages 489-489.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • H4 - Public Economics - - Publicly Provided Goods
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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