Funding Nonprofits in a Networked Society: Toward a Holistic Theory of Government Support

54 Pages Posted: 31 Oct 2018 Last revised: 13 Dec 2018

See all articles by Ji Ma

Ji Ma

LBJ School of Public Affairs and RGK Center, UT Austin

Date Written: July 17, 2018

Abstract

This paper puts forward a holistic theory on the crowding process of government support -- the effect that government funding to nonprofits may crowd out or crowd in private donations. By using a novel panel dataset across 12 years from the People's Republic of China, we find no evidence to support that government funding to a nonprofit can crowd out private donations to the same organization. However, we find a substantial crosswise crowding in effect, suggesting private donations are not reduced but redirected to other nonprofits in the organizational network. Policy and practical implications are discussed.

Keywords: Crowd Out, Crowd In, Social Relation, Government Funding, Nonprofit Organization, Networked Society

Suggested Citation

Ma, Ji, Funding Nonprofits in a Networked Society: Toward a Holistic Theory of Government Support (July 17, 2018). Available at SSRN: https://ssrn.com/abstract=3262798 or http://dx.doi.org/10.2139/ssrn.3262798

Ji Ma (Contact Author)

LBJ School of Public Affairs and RGK Center, UT Austin ( email )

2315 Red River St
Austin, TX 78712
United States
512-232-4240 (Phone)

HOME PAGE: http://jima.me/

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