Crowding-Out Charitable Contributions in Canada: New Knowledge from the North
Using data from charitable organizations in the US, authors have established that government grants to charities largely crowd out giving from other sources, but that this reduction is due mostly to reduced fundraising activities of the charity itself. We use much more detailed data from over 6000 charities in Canada, measured for up to 15 years, to provide valuable new insights into this phenomenon. In particular, dollars received from individuals is largely unchanged by government grants. Instead, the crowding out is attributable to two other sources of donations not differentiated in US data: giving from other charities and charitable foundations, and donations gained from special fundraising activities, like galas or sponsorships. Only the latter-which is about half of the measured crowding out-represents a potential loss of dollars to the charitable sector as a result of government grants.
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- Andreoni,J. & Payne,A.A., 2001.
"Government grants to private charities : do they crowd out giving or fundraising?,"
19, Wisconsin Madison - Social Systems.
- James Andreoni & A Abigail Payne, 2001. "Government Grants to Private Charities: Do They Crowd-Out Giving or Fundraising?," Public Economics 0111001, EconWPA.
- Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March.
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