FLYPAPER NONPROFITS: CROWDING IN AND CROWDING OUT EFFECTS OF GRANTS ON NONPROFIT FINANCE

Orkhan Ismayilov ()
Additional contact information
Orkhan Ismayilov: Department of Public Administration, University of North Texas, (940) 565- 2165

Regional Science Inquiry, 2016, vol. VIII, issue 3, 77-87

Abstract: The flypaper effect is a concept most commonly used by economists to study effect of funding by the federal government on state and local government finance. The argument is that funds allocated by a larger institution to smaller institutions changes policies and revenue base of fund receiving institutions. Similar concept is used to study the effect of government grants on nonprofit finance. The argument is that grant money pushes aside private donations that nonprofit organizations receive. However, the literature on the flypaper effect on grant money varies based on disciplines. The literature on the flypaper effect comes from three main disciplines, such as Economics, Business, and Public Administration. Additionally, the literature also highlights that grant money creates crowding in and out effects. The purpose of this paper is analyze and highlight the literature from three main disciplines, and discuss advantages and disadvantages of crowding in and out effects of grant funding. Findings indicate that grants have an effect on organizational revenue, policies, mission, public support, and service effectiveness.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.rsijournal.eu/ARTICLES/December_2016/7.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hrs:journl:v:viii:y:2016:i:3:p:77-87

Access Statistics for this article

Regional Science Inquiry is currently edited by Dr Christos Ap. Ladias

More articles in Regional Science Inquiry from Hellenic Association of Regional Scientists
Bibliographic data for series maintained by Dimitrios K. Kouzas ().