Do Donors Penalize Nonprofit Organizations with Accumulated Wealth?

Does current accumulated wealth by nonprofit organizations influence contributions from individuals? Existing research demonstrates that financial reserves aid program continuity during economic downturns. Yet donors, charity watchdogs, and policy makers voice concern about accumulated wealth in non...

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Veröffentlicht in:Public administration review 2011-11, Vol.71 (6), p.859-869
1. Verfasser: Calabrese, Thad D.
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description Does current accumulated wealth by nonprofit organizations influence contributions from individuals? Existing research demonstrates that financial reserves aid program continuity during economic downturns. Yet donors, charity watchdogs, and policy makers voice concern about accumulated wealth in nonprofits. This empirical analysis examines whether the expected negative relationship occurs when donors perceive accumulated wealth as excessive. The results support the conclusion that future contributions are negatively affected when wealth levels are deemed excessive. Nonprofit managers concerned that accumulated wealth will diminish donations should consider financial strategies that will allow their organizations to build modest—but not excessive—reserves.
doi_str_mv 10.1111/j.1540-6210.2011.02420.x
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source Worldwide Political Science Abstracts; EBSCOhost Business Source Complete; Access via Wiley Online Library; JSTOR Archive Collection A-Z Listing; EBSCOhost Political Science Complete; EBSCOhost Education Source
subjects Charitable giving
Charities
Charity
Contributions (Donations)
Donation
Donations
Economic crisis
Endowments
Financial aid
Government services
Net assets
Non-profit organizations
Nonprofit Organizations
Nonprofit sector
Policy making
Political science
Public administration
Spotlight on Contemporary Nonprofit and Public Sector Issues
Studies
Wealth
title Do Donors Penalize Nonprofit Organizations with Accumulated Wealth?
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