<p>This study investigates the overlooked, yet critical, impact of climate risk on nonprofit organizations. Leveraging data from the IRS and the Spatial Hazard Events and Losses Database for the United States&#xa0;(SHELDUS), the study analyzes the relationship between climate risk and donations to nonprofit organizations across a sample of 1.23 million IRS Form 990 filings by U.S. nonprofits from 2010 to 2021. The findings show a significant positive relationship between climate risk and donations that is robust to alternative specifications incorporating organization fixed effects, alternative climate risk measures, instrumental variables, entropy balancing, and difference-in-differences analysis. Additional subgroup tests reveal that hospitals and human service organizations see the largest increases in donations under elevated climate risk, while others, particularly mutual benefit organizations and international-focused nonprofits, experience declines. Additional analyses also indicate that donor-oriented organizations in high-risk areas are more likely to benefit from increased donations. Finally, cross-sectional analyses suggest that government funding, in the context of heightened climate risk, appears to partially “crowd out” private donations. The results underscore the importance of understanding how environmental challenges influence donor behavior and provide ethical implications and practical insights for nonprofit financial planning in an era of increasing climate risks.</p>

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Climate Risk and Donations to Nonprofit Organizations

  • Tahmina Ahmed,
  • Mohammad Maruf Hasan,
  • Xing Huan,
  • Gregory D. Saxton

摘要

This study investigates the overlooked, yet critical, impact of climate risk on nonprofit organizations. Leveraging data from the IRS and the Spatial Hazard Events and Losses Database for the United States (SHELDUS), the study analyzes the relationship between climate risk and donations to nonprofit organizations across a sample of 1.23 million IRS Form 990 filings by U.S. nonprofits from 2010 to 2021. The findings show a significant positive relationship between climate risk and donations that is robust to alternative specifications incorporating organization fixed effects, alternative climate risk measures, instrumental variables, entropy balancing, and difference-in-differences analysis. Additional subgroup tests reveal that hospitals and human service organizations see the largest increases in donations under elevated climate risk, while others, particularly mutual benefit organizations and international-focused nonprofits, experience declines. Additional analyses also indicate that donor-oriented organizations in high-risk areas are more likely to benefit from increased donations. Finally, cross-sectional analyses suggest that government funding, in the context of heightened climate risk, appears to partially “crowd out” private donations. The results underscore the importance of understanding how environmental challenges influence donor behavior and provide ethical implications and practical insights for nonprofit financial planning in an era of increasing climate risks.