Citation

Discussion Paper Details

Please find the details for DP7937 in an easy to copy and paste format below:

Full Details

Title: Public Funding of Charities and Competitive Charity Selection

Author(s): Kimberley Scharf

Publication Date: August 2010

Keyword(s): Charities, Government funding, Market Structure of Nonprofit Organizations, Nonprofit organizations and Pro-Social Motivation

Programme Area(s): Public Economics

Abstract: Evidence on the price elasticity of private donations to charities and on the crowding out effect of donations by government grants suggests that a redirection of government funds from tax incentives for giving towards direct grants could increase total charity funding. This raises the question of why tax incentives for giving are used instead of direct grants. This paper shows that if government grants to charities face verification constraints, switching from direct grants to donation incentives can produce a pro-competitive effect on charity selection, raising the value of charity provision per dollar of funding.

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Bibliographic Reference

Scharf, K. 2010. 'Public Funding of Charities and Competitive Charity Selection'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7937