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Author Jerald Schiff presents a framework within which charitable
behavior can be understood from an economist's viewpoint. He
stresses the impact of various government fiscal policies on
charitable giving, an issue of increasing importance in light of
social welfare spending cuts and the Tax Reform Act of 1986. The
book begins with an introduction of the issues involved and an
explanation of how an economic analysis differs from that of other
disciplines. Chapter 2 introduces the basic model of giving
employed throughout the book. Using this model, he describes
conditions under which government spending will crowd out, or
reduce, charitable giving. This analysis is then extended in
several different directions in the balance of the book. First,
Schiff considers the implications of the fact that much government
spending is funneled through charitable organizations, arguing that
government support for charities may actually encourage donations.
Contending that donors often have poor information about the
activities of charities, he analyzes soliciting by charities. Next,
the author models the behavior of volunteers, arguing that money
and time are often given for very different reasons and so may
respond to policy changes in different ways. He offers several
alternative explanations for volunteering. These several hypotheses
are then tested against data from the National Survey of
Philanthropy. The use of time series data from 1930-86 examines the
historical relationship between government spending and money
donations. In conclusion, the author considers likely future trends
in the charitable sector. This book will interest economists and
other social scientists working in the areas of charitable giving
and the nonprofit sector and public finance. Practitioners--lawyers
and fundraisers--in the nonprofit sector will also find this book
required reading.
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