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Who Benefits from the Nonprofit Sector

Charles Clotfelter, ed. (University of Chicago Press, 1992)

This accessible study examines all the major elements of the nonprofit sector of the economy of the United States—health services, educational and research institutions, religious organizations, social services, arts and cultural organizations, and foundations—describing the institutions and their functions, and then exploring how their benefits are distributed across various economic classes. The book's findings indicate that while few institutions serve primarily the poor, there is no evidence of a gross distribution of benefits upward toward the more affluent. The analysis of this data makes for a book with profound implications for future social and tax policy.

The book examines the role of private nonprofit organizations in providing services to needy people. Each chapter, based on commissioned papers, attempts to deal with the same deceptively simple question (who benefits?) with regard to one subsector of the nonprofit arena (religious, health service, education, social service, arts and culture, and foundations). Authors were asked to address two specific issues: “What are the benefits produced by the nonprofit institutions in the [particular] subsector? Second, how are these benefits distributed across households of different incomes?” Clotfelter also provides a definition of benefit: “In theory, the value of a good or service is equal to the amount a person would be willing be pay for it. The net benefit to a consumer can be defined as this value minus any amount actually paid, or the consumer surplus.” Softcover, 286 pages, $13.95

 
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