Resumen
In this paper, we empirically study the association between past year fundraising efficiency and current year donations to not-for-profit organizations. First, our data show that prior year fundraising inefficiency (fundraising expenses as a proportion of total donations) is negatively associated with current year donations and is robust to an inclusion of prior year financial vulnerability as an explanatory variable. Secondly, we find that prior year levels of fundraising expenses and program expenses are positively associated with current year donations. Finally, prior-year financial vulnerability, which is measured in our paper consistent with Greenlee and Trussel (2000), is negatively associated with current year donations.