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Laudo Ogura and David T Yi
''Determinants of saving in U.S. nonprofit organizations''
( 2015, Vol. 35 No.4 )
In this paper, we study how the saving behavior of nonprofit organizations are related to organizational characteristics. First, we present a model to show how these organizations make saving decisions based on their discount rate of future spending, prudence, and volatility of income. Then, we perform an econometric analysis using data from the 2000-2004 period. We find that savings are larger for organizations that depend more on public support or on returns from financial investments, while savings are smaller for organizations that rely more on government grants or on service fees. Moreover, volatility of revenue is associated with more savings, while social need objective is associated with smaller savings.
Keywords: Nonprofit Organization; Saving; Consumption smoothing; Precautionary Saving; Risk Averseness
JEL: L3 - Nonprofit Organizations and Public Enterprise: General
Manuscript Received : Aug 26 2015 Manuscript Accepted : Dec 18 2015

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