Factors Influencing U.S. Charitable Giving during the Great Recession: Implications for Nonprofit Administration

Jerry Marx,Vernon Carter

doi:10.3390/admsci4030350

Abstract

The purpose of this study is to examine factors influencing U.S. charitable giving during the first full year of the Great Recession. Demand on the services of human service nonprofits typically escalates during periods of extreme economic downturn; thus donations to agencies serving the most vulnerable groups—the young, the old, and the frail—become increasingly important. The study sample consisted of 8690 U.S. respondents. Results indicate the growing importance of computer ownership and the continuing importance of combined purpose agencies in assisting the needy in hard times. Suggestions for both future research and nonprofit administrative practice regarding charitable giving are provided.

Highlights

When the Obama Administration took office, it faced the worst U.S economy since the GreatDepression
We examined factors influencing charitable giving to combined purpose organizations such as United Way and Catholic Charities, youth service organizations and organizations serving those in need of food, shelter, and other basic necessities
The study uses the Panel Study of Income Dynamics (PSID) data to analyze the effects of several independent variables on giving by U.S households to organizations that serve the needy

Summary

Introduction

When the Obama Administration took office, it faced the worst U.S economy since the Great. Over three million jobs had been lost in 2008; over three million households had received foreclosure notices on their homes in that year [1]. The recession lasted about two years, roughly. Given the massive need created by the Great Recession, the demand on the services of human service nonprofit agencies, especially organizations serving the most needy citizens, soared

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Conclusion