Spend or Save? Nonprofits’ Use of Donations and Other Revenues

Nicolas J. Duquette. 2017. “Spend or Save? Nonprofits’ Use of Donations and Other Revenues,” Nonprofit and Voluntary Sector Quarterly, 46(6): 1142-1165.

35 Pages Posted: 25 Jun 2018 Last revised: 18 Apr 2022

See all articles by Nicolas Duquette

Nicolas Duquette

University of Southern California

Date Written: June 21, 2017

Abstract

Panel regression methods are used to estimate the links between nonprofits’ revenues by source and the uses of those revenues. While charities spend most types of revenue on program services, they overwhelmingly save revenue from donations. This is true for all types of charity by National Taxonomy of Exempt Entities code. This saving is not driven by donor restrictions or by short-term strategic shifts, but is consistent with expense smoothing over time. Policymakers should consider effects of donation incentives and government grants on the timing of outputs that result from different revenue sources.

Keywords: Charitable contributions, nonprofit management

JEL Classification: D64, H32, H44

Suggested Citation

Duquette, Nicolas, Spend or Save? Nonprofits’ Use of Donations and Other Revenues (June 21, 2017). Nicolas J. Duquette. 2017. “Spend or Save? Nonprofits’ Use of Donations and Other Revenues,” Nonprofit and Voluntary Sector Quarterly, 46(6): 1142-1165., Available at SSRN: https://ssrn.com/abstract=3193499

Nicolas Duquette (Contact Author)

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

HOME PAGE: http://www.nicolasduquette.com

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