Income Concentration Trends and Competition in the Charitable Sector: An Analysis of Jewish Charities in England and Wales
Jewish charities are a subgroup of about two thousand, five hundred organizations, accounting for 1.5% of the total number of main charities in England and Wales. The increasing total income of general charities has prompted considerable debate about the perceived concentration of income and the perceived dominance of bigger charities over smaller ones. Meanwhile, the implications of competition for charitable behavior have remained underappreciated. Building on these assumptions and aiming to test how far the results of research carried out in the charitable sector in general apply to the Jewish charitable sector in particular, the research investigates the trends in concentration of income of a sample of 1301 Jewish charities operating between 1995 and 2015, using common measures of concentration to describe the competitiveness of the Jewish charitable sector in England and Wales. The findings suggest that the sector, in line with the wider UK charitable sector, experienced high levels of growth in terms of both aggregate total income and the number of charities operating, along with decreasing levels of income concentration. These findings allow one to hypothesize that, other things being constant, the increasing numbers of entrant charities may well have increased the size distribution of charities providing the same products or services, therefore exacerbating the competition for charitable funding in the Jewish charitable sector. This, in turn, on the one hand is likely to have exacerbated the competition for donations especially among charities pursuing similar causes, reducing the total amount of charitable money devoted to particular causes. On the other hand, the increasing numbers of charities providing the same products or services and the resultant increasing competition for funding may have impacted on the costs and efforts Jewish charities were able to divert to fundraising at the expense of resources that could be devoted, instead, to service provision.
Link to article (paywalled), Income Concentration Trends and Competition in the Charitable Sector: An Analysis of Jewish Charities in England and Wales
Income Concentration Trends and Competition in the Charitable Sector: An Analysis of Jewish Charities in England and Wales. 2019: https://archive.jpr.org.uk/10.1007/s12397-019-09278-2