How does community philanthropy function?: Direct effects of the social problem and the moderating role of community racial diversity

This study examines how the urgency of specific social problems within a community can trigger the growth of local philanthropy, especially when moderated by racial diversity. Using a large dataset covering U.S. counties and employing statistical methods, the authors analyze the conditions under which local giving is catalyzed. The study finds that social capital plays a critical but nuanced role—its effect is significantly amplified in racially diverse communities where interpersonal trust and mobilization dynamics are more complex. The findings offer new insights into the interplay of local need, diversity, and community engagement in shaping the nature and effectiveness of philanthropy.