Corporate Donors Favor ‘Elite’ Nonprofits, Study Finds

“Elite” nonprofits like arts institutions and colleges tend to benefit more from corporate giving than do social-welfare charities, according to a study published in the journal Organization Science. The higher the concentration of corporate headquarters in a city, the faster the growth of local nonprofits, the study found. But the impact was greater on nonprofits that enrich the culture or higher learning of a community than on groups that aim to alleviate social problems.

The study examined the influence of locally headquartered corporations in 100 U.S. cities from 1987 to 2002.

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