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Objective. This article tests the hypothesis that social capital -- measured in terms of civic group involvement, social & racial trust, & political engagement -- leads to charitable behavior by individuals. Methods. I introduce measures of the "social capital elasticity of giving," which facilitate comparisons between the effects on charity of different social capital types. Using data from the 2000 Social Capital Community Benchmark Survey, I estimate these elasticities with tobit regression models. Results. I find strong links between changes in social capital stocks & changes in giving levels. Furthermore, I find that different social capital types have differing levels of impact on giving. Conclusions. Charitable giving appears to be a beneficial consequence of some types of social capital. 3 Tables, 1 Figure, 1 Appendix, 30 References. Adapted from the source document.

Surveys of charitable giving typically find that a substantial proportion of respondents say they do not know how much they gave in the past year. In this article, it is argued that these responses tend to distort giving levels among certain demographic groups, thus compromising the accuracy of charity measures. This problem is illustrated using data from the 2000 Social Capital Community Benchmark Survey, and the groups that are the primary source of this distortion are identified.

Most of the debate over government arts support focuses on direct subsidies to nonprofit arts organizations. In this article, however, I show that a much larger amount of public sector money comes from indirect aid, in the form of tax revenues forgone on tax‐deductible contributions by individuals. Specifically, every dollar in direct federal arts funding is accompanied by about $14 in indirect aid. Analysis of the 1996 General Social Survey shows that private givers and supporters of direct government aid fit different demographic profiles, meaning that direct and indirect funding owe to distinct constituencies. These findings lead to a number of implications for nonprofit and public arts managers.
It is sometime proper for the state to encourage and protect dishonorable but useful professions, without those who exercise them being more highly considered for that.Jean‐Jacques Rousseau1

What do we know empirically about the government's impact on private charitable giving? This article surveys several disparate literatures and data sources on the reaction of private citizens to their most frequent interactions with the public sector. These studies suggest that charitable giving is negatively affected by most tax reforms, receipt ofwelfare payments, government funding of nonprofit activities, and rising confidence in government. These and other findings have implications for policy.

Public radio in the United States receives both direct and indirect government funding. Direct subsidies come in the form of lump‐sum and matching grants, while indirect subsidies proceed from tax revenues forgone on tax‐deductible private donations. Each of these sources of government money affects charitable giving to public radio. This article estimates both of these effects, using data on 91 public radio stations in the United States during 1995. Data analysis shows that public funding to stations has a positive impact on private giving, but this impact rapidly decreases as the level of government subsidies increases. The analysis also indicates that increases in state tax rates correspond with significantly higher donation levels. This article explores the implications of these and other findings for policy makers, public administrators, and nonprofit managers.

Books reviewed in this article:Lester M. Salamon (ed.), The State of Nonprofit AmericaPeter Frumkin, On Being Nonprofit: A Conceptual and Policy PrimerPaul C. Light, Pathways to Nonprofit Excellence