Do grants to charities crowd out other income? Evidence from the UK

James Andreoni, A. Payne and Sarah Smith

Journal of Public Economics, 2014, vol. 114, issue C, 75-86

Abstract: We use a novel identification strategy to shed light on the effect of grant funding. We focus on charities that applied to a UK lottery grant programme. Where charities score the same on formal criteria, it is likely that informal criteria orthogonal to quality are used to break the ties, allowing us plausibly to treat a grant as a random event. We find evidence that grants have a positive impact for smaller charities, increasing their longevity and even crowding in other income.

Keywords: Charities; Crowd out; Grants; Seed funding (search for similar items in EconPapers)
JEL-codes: H3 H41 H44 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Working Paper: Do grants to charities crowd out other income? Evidence from the UK (2013)
Working Paper: Do Grants to Charities Crowd Out Other Income? Evidence from the UK (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:114:y:2014:i:c:p:75-86

DOI: 10.1016/j.jpubeco.2013.10.005

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