Joint Supply and the Finance of Charitable Activity

John Posnett and Todd Sandler
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John Posnett: University of York

Public Finance Review, 1986, vol. 14, issue 2, 209-222

Abstract: This article puts forth a joint-supply model of charity, in which the purchase of a private good yields excess revenues used to finance a public charitable output. Joint supply is an especially effective fund-raising technique when the private and public goods are Hicksian complements. Competitive advantages, gained through tax-exempt status, also allow charities to outcompete for-profit competitors. Evidence drawn from U. K. charities demonstrates that large successful charities generate a sizable portion of revenues from direct-trading activities.

Date: 1986
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:14:y:1986:i:2:p:209-222

DOI: 10.1177/109114218601400206

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