The article “Does the government crowd-out private donations? New evidence from a sample of non-profit firms” published in the Journal of Public Economics 69. Is written by Abigail Payne  who is a professor in the Department of Economics from the University of Toronto. The research question in this piece is clearly stated i the the article “does the government crowd-out private donations?”.  This premise of the research starts back in the 1980’s when the Canadian government started to reduce the number of grants given to non-profit organizations. However since government grants and private donations are the only way non-profits are able to generate revenue with either or being a large component of the revenue suddenly being removed can cause a dramatic shift in how a non-profit markets themselves. The data needed to solver this kind of question is organizational data because each non-profit is going to handle donations in a way so you’d have to ask each organization to get access to the data of the donation and grant money. The gathering method behind this research is reports of actions, the specific action being money donated via individual or grants from the government. This is a very interesting piece because many of the other research studies I’ve looked at have all been based in Canada. So those who are interested in governmental impact on non-profits should look into this.

Link to Article: http://www.socsci.uci.edu/~jkbrueck/course%20readings/Econ%20272B%20readings/payne.pdf