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
Date Written: June 21, 2017
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: Suggested Citation