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Journal of Productivity Analysis

, Volume 35, Issue 2, pp 171–180 | Cite as

The fundraising efficiency in U.S. non-profit art organizations: an application of a Bayesian estimation approach using the stochastic frontier production model

  • Seongho Song
  • David T. Yi
Article

Abstract

This article examines how efficient art organizations are in raising funds from private giving. We measure fundraising efficiency using a Bayesian estimation approach using the stochastic frontier production model. We show that fundraising efficiencies are generally quite low for art organizations in the U.S. when private giving is only considered as a fundraising output; however, when the effect of fundraising on ticket sales is considered, fundraising efficiencies improve substantially. We also show that government grants have a negative impact on fundraising efficiency and therefore partially crowd out private giving.

Keywords

Fundraising efficiency Stochastic frontier models Bayesian estimation Non-profit art organizations Crowding out 

JEL Classification

C11 H32 H5 L31 

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Department of Mathematical SciencesUniversity of CincinnatiCincinnatiUSA
  2. 2.Department of EconomicsXavier UniversityCincinnatiUSA

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