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Crowding out in fundraising
This is fascinating. “Crowding out” is the economic idea that public money can push out private money. A paper from the National Bureau of Economic Research suggests that for every $1,000 of government grant received, private donations fall $757. There are two possible reasons for this: private donors give less or that charities invest less in fundraising. The research suggests that the decline is mostly self-inflicted, because charities scale back their fundraising capacity, becoming reliant on their government money. Read more.
This entry was posted on Friday, February 18th, 2011Read similar posts
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