Rescuing the losers or betting on the winners? The impact of income growth and volatility on grant funding

Beschreibung

Grantmaking foundations have recently gained importance as funders of nonprofit organisations in many Western countries. Yet, risk-taking behaviour, or more generally grantmaking strategies are a comparatively less well-researched topic. This paper analyses how income growth and income volatility of a non-profit organisation are associated with the likelihood to receive a grant and the grant amount received. In addition, we investigate whether different types of grant making foundations have different strategies in their decision-making behaviour. We analyze a unique data set that matches English and Welsh foundation grant data with charity information for the years 1997 to 2015 with detailed financial information from 6,155 charities’ annual returns. The results indicate that larger organisations and organisations with a more positive growth trend are more likely to be funded. Additionally, especially in the case of non-lottery funders, income volatility reduces the probability of funding. These results could reinforce the trend that the share of larger organisations grows and that (riskier) innovative programs are avoided.

Zeitraum	12 Juli 2021 → 15 Juli 2021
Ereignistitel	14th International ISTR Conference
Veranstaltungstyp	Keine Angaben
Bekanntheitsgrad	International