Quotation Pennerstorfer, Astrid, Rutherford, Alasdair. 2021. Rescuing the losers or betting on the winners? The impact of income growth and volatility on grant funding. 14th International ISTR Conference, online, Kanada, 12.07.-15.07.


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Abstract

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.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Rescuing the losers or betting on the winners? The impact of income growth and volatility on grant funding
Event 14th International ISTR Conference
Year 2021
Date 12.07.-15.07.
Country Canada
Location online
URL https://istr2021.us2.pathable.com/

Associations

People
Pennerstorfer, Astrid (Details)
External
Rutherford, Alasdair (University of Stirling, United Kingdom)
Organization
Institute for Social Policy IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5363 Non-profit-sector research (NPO, NPI) (Details)
5911 Social policy (Details)
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