The Impact of Local Economic Structure on Community Philanthropy

Abstract

AbstractThis article explores how local economic structure directly and indirectly affects community philanthropy. Drawing on campaign data for local United Way (UW) affiliates at three points in time (1990, 2000, and 2010), the article tests the degree to which the relationship between economic structure and community philanthropy is mediated through local stocks of human resources and social capital. The results suggest that retail employment and industrial concentration negatively affect local UW campaigns, while nonlocal ownership positively affects UW campaign size. These measures of economic structure also indirectly influence local UW fund‐raising activities by affecting the levels of human resources and social capital. In the midst of global efforts to increase community‐based philanthropy, these findings have important policy implications for efforts to promote community solutions to social issues in changing economies.