Government spending impacts charitable contributions, especially in education sector.
The study found a connection between charitable donations and government spending. They discovered that long-term relationships exist between different types of charitable giving and government spending. Short-term changes in fundraising efforts by charities can also impact government spending. Interestingly, donations to education respond differently to state and local government spending compared to federal spending. The relationship between government spending and charitable giving depends on where the government gets its money from and how it is used for education.