Welfare Receipt and Private Charity

Abstract

In the wake of welfare reform efforts, alliances between governments and charities, and public preoccupation with "social capital," it is useful to understand how welfare payments interact with charitable giving. Using Consumer Expenditure Survey data from the first quarter of 1999, this article estimates the impacts on charitable giving by individuals from receipt of welfare payments, as well as income, wealth, and a number of demographic variables. The data analysis suggests that charity is negatively associated with welfare receipt, while wealth, income, and age have positive impacts on giving. These findings have significant implications for public policy and nonprofit management.