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Family, urban and regional influences on giving behavior

The non-profit sector is an increasingly important part of the economy. Unlike other economic activities, the non-profit organizations rely upon individual, corporate and government giving to support their operations, causing them to face a different set of influences. To test the forces that shape individual giving, two hypotheses are proposed. One is that giving is affected by family characteristics such as the age and education of the household head, family size, and the number of earners in each family. The other relates giving to the free rider concept: most is given in the smallest communities due to peer pressure. This hypothesis is tested by using homeownership and population density as measures of community attitudes. Income, population, and regional dummy variables represent urban and regional factors. The models were tested using Consumer Expenditure Survey Data for 1950, 1960, and 1972; the results indicate the dominance of income, the limited influence of both family characteristics and free rider effects, and little regional differentiation.