Do Donors Penalize Nonprofit Organizations with Accumulated Wealth?

Research output: Contribution to journalArticlepeer-review


Does current accumulated wealth by nonprofit organizations influence contributions from individuals? Existing research demonstrates that financial reserves aid program continuity during economic downturns. Yet donors, charity watchdogs, and policy makers voice concern about accumulated wealth in nonprofits. This empirical analysis examines whether the expected negative relationship occurs when donors perceive accumulated wealth as excessive. The results support the conclusion that future contributions are negatively affected when wealth levels are deemed excessive. Nonprofit managers concerned that accumulated wealth will diminish donations should consider financial strategies that will allow their organizations to build modest-but not excessive-reserves.

Original languageEnglish (US)
Pages (from-to)859-869
Number of pages11
JournalPublic Administration Review
Issue number6
StatePublished - Nov 2011

ASJC Scopus subject areas

  • Sociology and Political Science
  • Public Administration
  • Marketing


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