Government grants to charities reduce private donations by 75%, fundraising hit hardest.
The article shows that when charities get government grants, donors might give less. This happens because charities reduce their fundraising efforts after getting grants. The study looked at over 8000 charities and found that about 75% of the decrease in donations is due to this fundraising effect. This means that government grants can affect how much money charities get from private donors. To help with this, the study suggests that charities should be asked to raise some money on their own to match the government grants.