Empirical Research On Charitable Foundation's Own Factors Affecting Donation Revenue

In the 21st century, with the social and economic development, the changing of government functions, independent of the government and outside of the market non-profit organizations (NPO) is quietly rising. Charitable Foundation is also growing as an important part of the third sector. At the end of 2009, the number of registered charitable foundations has reached 1843 in China. The working areas of these social organizations involved in science and technology, education, culture, health, labor, civil affairs, sports, environment, legal services, intermediary services, work injury services, rural economic and other various fields of social life. Charitable Foundation has become one of most important force in China's charity career, which cannot be ignored. No development can be reached without resources, so the important of donations to the development of charitable foundations would never be too much. In the new era, in an open and competitive market environment, the charitable foundation donated income by a multiplier effect. How to get more charitable resources undoubtedly is an important issues charitable foundations facing. The most important of which is to know what factor influence charitable donations mainly. This paper argues that charitable foundations face three factors affecting donation income. In this paper we use Foundation Center of China Charity Foundation for object, with the Foundation 2009 annual financial information for the sample, to make empirical research on the two factors. To make the empirical analysis work, we classify these three factors with several variables. The three properties are organization factor (number of years the Foundation was established, whether national foundations or not, whether local foundations or not, the number of full-time employees), income properties (service revenue, business revenue, government grants revenue, investment income, other income) and expense characteristics (operations fee, management fee, raising fee, other fee). By making the natural logarithm of total assets as control variable, the relation between revenue and three factors has been known. The empirical results show that the age of foundation is significantly negatively related to donation. Income properties, the provision of service revenue, business revenue, government grants revenue, investment income, other income are significantly negatively related donation income. In expense characteristics, operations fee has non-statistically significant positive correlation with donation, The organization's management fee, financing fee and other fee are significantly negatively related donation income.