Inter-charity competition and efficiency: Considerations beyond fundraising and tax incentives for giving

Lohse, Johannes; Sharf, Kimberley

Abstract

While insights into optimal fundraising strategies inform the debate on whether fundraising is valuable to non-profits seeking to maximize their charitable income, they do not speak to questions related to production efficiency or the optimal size and shape of the sector. Answering these questions requires a broader perspective. We argue that such a broader perspective must take into account the implications of inter-charity competition and donor responses for (i) the distribution of donations across charitable causes, across time and in aggregate; (ii) the technological choices charities make when deciding on how to convert donations and other inputs in the production of charitable outputs; and (iii) the structure of charitable markets. Using the insights from (i)–(iii), we then discuss the scope of government policies and tax incentives.

Citation

Lohse, J., & Sharf, K. (2021). Inter-charity competition and efficiency: Considerations beyond fundraising and tax incentives for giving. In H. Peter, & G. L. Huber (Eds.), The Routledge Handbook of Taxation and Philanthropy. Routledge. https://doi.org/10.4324/9781003139201

• Online Publication Date: Dec 24, 2021
• Publication Date: 2021
• Deposit Date: Oct 29, 2024
• Publicly Available Date: Oct 29, 2024
• Peer Reviewed: Peer Reviewed
• Book Title: The Routledge Handbook of Taxation and Philanthropy
• Chapter Number: 18
• ISBN: 9780367688271
• DOI: https://doi.org/10.4324/9781003139201
• Public URL: https://nottingham-repository.worktribe.com/output/41136497
• Publisher URL: https://www.taylorfrancis.com/chapters/oa-edit/10.4324/9781003139201-21/inter-charity-competition-efficiency-johannes-lohse-kimberley-scharf?context=ubx&refId=b3c242cd-22ca-436b-8748-94b50b9dd268