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Does the money go where it needs to go?: testing the relationship between foundation giving and social need in California
Because foundations have tax-exemption from the IRS, it is expected that they will meet a need that is not being met by the government. However, there are many who believe that there is a discrepancy in foundational giving in California because the perception is that foundational giving goes to select counties and others, especially those in the Central Valley, do not receive a fair amount of funding when considering similar populations and needs of the counties. To test this hypothesis, data on giving from four of the largest foundations in California for one year were gathered along with data on social needs indicators for every county in California to test whether there is a correlation between foundational giving and social needs.
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