The number but not the variety of nonprofit organizations affects donations: evidence from an experiment

Giacomo Degli Antoni () and Marco Faillo ()

No wp74, Econometica Working Papers from Econometica

Abstract: We provide experimental evidence on the effect of competition among nonprofit organizations on the total and the per capita amount of collected donations. We vary the number of organizations in competition, their type, i.e., nonprofit associations and community foundations, and their charitable purposes, i.e., to help people with economic difficulties or disabilities. We show that the number but not the variety of nonprofit organizations positively affects the total collected donations. Moreover, we find that the latter is inelastic to the increase in the number of organizations in the competition, which increases the total collected donations but reduces the per capita donations.

Keywords: donations; competition; organizational density; nonprofit organizations; community foundations (search for similar items in EconPapers)
JEL-codes: C91 D64 L31 (search for similar items in EconPapers)
Pages: 19
Date: 2019-08
New Economics Papers: this item is included in nep-exp and nep-soc
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Journal Article: The number but not the variety of nonprofit organizations affects donations: evidence from an experiment (2021)
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