The Goods Produced By Nonprofit Organizations

Cyril F. Chang and Howard P. Tuckman
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Cyril F. Chang: University of Memphis
Howard P. Tuckman: Virginia Commonwealth University

Public Finance Review, 1996, vol. 24, issue 1, 25-43

Abstract: Nonprofit organizations produce a range of goods and services from the purely public to the purely private. Within the two extremes fall a majority of their outputs. This article explores the question of what determines a nonprofit's mix of goods. It first develops a method to measure the product mix of charitable nonprofit organi zations. A testable model is then offered and applied to a national database consisting of tax returns filed with Internal Revenue Service by tax-exempt charitable nonprofits. The results indicate that the output mix can be explained by institutional characteristics, types of activity, and community-based factors. The article concludes with a discussion of whether, given the evidence, public subsidies to charitable nonprofits should be based on the outputs these entities produce.

Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:24:y:1996:i:1:p:25-43

DOI: 10.1177/109114219602400102

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