Date of Award

Spring 5-5-2024

Document Type

Thesis

Degree Name

Bachelor of Arts (BA)

Department

Economics

First Advisor

Monica Das

Second Advisor

Smriti Tiwari

Third Advisor

Rodrigo Schneider

Abstract

This paper studies donations to non-profit organizations in the US and how they reacted to The Great Recession of 2008. I find statistically significant drop-offs in multiple donative subcategories, including religion, education, human services, public society benefits, and arts, culture, and humanities, making up over 50% of total donations. Donation levels after the 2008 crash tend to be slightly downward sticky, meaning the rate of increase is larger after the treatment effect. These increased rates of return allow for market correction post-recession but still reveal a deadweight loss when comparing trends in OLS betas before and after the recession, meaning organizations must reign in their philanthropic outlays. I find a necessity for exogenous stimulus and propose the Keynesian Foundation as a potential solution to keep non-profit organizations afloat during financial downturns.

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