A Theoretical Model of the Effects of Public Funding on Saving Decisions by Charitable Nonprofit Service Providers
Webb, Natalie J.
MetadataShow full item record
Why do charitable nonprofit, service-providing organizations save? What are the tradeoffs between using income to build up cash reserves and serving more clients? Saving may generate income, protect the organization against a drop in donations, and increase the organization’s chances of survival. Saving, though, may affect the likelihood that nonprofits receive private and public funding. We model the relationship among private and public income, economic conditions, and nonprofit savings. We find that anticipation of government help during difficult times tends to reduce the amount of saving done by the nonprofit. This effect is strengthened if government officials view unspent donations as indicative of a lack of need. Both these effects provide a strong incentive for nonprofits to spend on current consumption rather than to save for the future, and thus to increase the burden on the public purse.
Showing items related by title, author, creator and subject.
An account for saving active pay (ASAP): an employer-sponsored savings plan for active duty military personnel Honan, Stephen Elliot (Monterey, California: Naval Postgraduate School, 1990-12);Legislators, recognizing the need to increase the national savings rate, have introduced profit-sharing and thrift savings plans to civilians, but have not included the military. This thesis examines the need for and the ...
Dube, Michael A.; Vetting, Brad W. (Monterey, California. Naval Postgraduate School, 2004-12);The objective of this MBA project is to examine the nonprofit sector as a source of lessons learned for the federal government and the Department of Defense. This paper provides a characterization of the nonprofit and ...
Galvao, Jose A.; Poe, Thomas T. (Monterey, CA; Naval Postgraduate School, 2018-06);The Department of Defense is always examining opportunities to use its budget resources more efficiently while generating the right incentives to recruit, train and retain the best service members. Permanent Change of ...