We estimate the effect of exogenous federal expenditure cutbacks on state social service expenditures and on charitable donations. In the process, we also estimate tax and income effects and explore the impact of community environment and "need" variables. Data consist of a unique three-year...

In this chapter, we explore why donations are made to nonprofit organizations instead of other institutions or directly to recipients; how such nonprofit organizations behave; and what is the appropriate public policy toward subsidizing and regulating these entities. We focus on donative...