Determinants of saving in U.S. nonprofit organizations

Laudo Ogura and David Yi ()
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David Yi: Xavier University

Economics Bulletin, 2015, vol. 35, issue 4, 2786-2795

Abstract: In this paper, we study how the saving behavior of nonprofit organizations are related to organizational characteristics. First, we present a model to show how these organizations make saving decisions based on their discount rate of future spending, prudence, and volatility of income. Then, we perform an econometric analysis using data from the 2000-2004 period. We find that savings are larger for organizations that depend more on public support or on returns from financial investments, while savings are smaller for organizations that rely more on government grants or on service fees. Moreover, volatility of revenue is associated with more savings, while social need objective is associated with smaller savings.

Keywords: Nonprofit Organization; Saving; Consumption smoothing; Precautionary Saving; Risk Averseness (search for similar items in EconPapers)
JEL-codes: L3 (search for similar items in EconPapers)
Date: 2015-12-18
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Citations: View citations in EconPapers (2)

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