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RELATIONSHIP BETWEEN PUBLIC SUBSIDIES AND UNEARNED REVENUES FOR NON-PROFIT ORGANIZATIONS: TESTING THE CROWDING-OUT AND CROWDING-IN POSITIONS IN THE CZECH REPUBLIC

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Hladká M., Hyánek V., Špalek J.

Ekonomický časopis (Journal of Economics)

2017

vol. 65

issue 3

263 – 281

Due to their heavy dependence on financial support from the public sector and close links to a wide range of government policies, non-profit organisations (NPOs) are becoming increasingly state-oriented. Although economic experts have striven to empirically test whether public funding of the non-profit sector (NPS) supports private philanthropy or, on the contrary, crowds-it out, there is no comprehensive research of this type within the Czech Republic. In connection with these blank areas in theories on the Czech non-profit sector, we pose the following question: How does public financing of NPOs influence the amount of private donations that these organisations receive? To answer this question, we conducted our own research (n = 483). The results demonstrate a crowding-out effect for public resources but not for other types of financing sources, such as revenues from the organisation’s own activity and commercial revenues.

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1 Ekonomický časopis (Journal of Economics)

1 2017

1 Hladká M.

1 Hyánek V.

1 Špalek J.

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RELATIONSHIP BETWEEN PUBLIC SUBSIDIES AND UNEARNED REVENUES FOR NON-PROFIT ORGANIZATIONS: TESTING THE CROWDING-OUT AND CROWDING-IN POSITIONS IN THE CZECH REPUBLIC