How to be Resilient? Local Philanthropy as a Collective Response to Natural Disasters

Abstract

When communities are struck by natural disasters, human service organizations play an important role in supplementing governmental aids and catering to immediate humanitarian needs. Social capital is one of many factors affecting resource mobilization directed toward human service organizations as a proxy for local philanthropy. This study analyzed the effect of social capital on local philanthropy in communities affected by natural disasters and compared it to the effect of corporate philanthropy. In addition, this study examined how the relationships among social capital, corporate philanthropy, and local philanthropy were moderated by racial diversity to answer a long-standing argument regarding the effect of racial diversity on philanthropy. To this end, a panel dataset covering three given years and 3121 US counties was analyzed using GEE models. The results suggest that social capital does not always facilitate local philanthropy and its influence on local philanthropy is catalyzed by racial diversity. Also, corporate philanthropy positively influences resource mobilization toward human service organizations, more noticeably in communities affected by natural disasters.