THE EFFECTS OF NONPROFIT ORGANIZATION- SPECIFIC FACTORS ON GOVERNMENTAL SUPPORT TO NONPROFIT ORGANIZATIONS

Numerous studies examine the effects of nonprofit organization-specific factors on donations to nonprofit organizations (NPOs) at the individual NPO level. Although donations are a significant source of funding for NPOs, governmental support is also a significant source of funding, comprising 11 % of total revenues of the NPOs in the large sample of U.S. NPOs tested in this paper. Despite the importance of this source of NPO funding, we are unaware of any published models of organization-level governmental support to NPOs. Thus, we develop what we believe to be the first model of governmental support to NPOs at the organizational level as a function of NPO organization-specific factors. We test this five-factor model, using OLS, on data for a large sample from the National Center for Charitable Statistics database of U.S. NPOs and find that all factors in the model are statistically significant. NPO efficiency, age, and wealth have a significant negative effect on governmental revenues of the NPOs, and fundraising expenses and non-governmental revenue have a significant positive effect