Free Riding, Market Structure, and Church Member Donations in South Carolina

Abstract

The research literature on factors influencing member donations to churches is extensive. This paper uses unique data from South Carolina Baptist congregations to con­firm much of the research, particularly including the potential for free-riding by members, but also extends that research by exploring the differential effect on dona­tions of competition among Baptist congregations and between Baptist and non-Baptist congregations. We employ hierarchical linear modeling, rarely used in religious research but particularly well suited to the data, some of which is by congregation and some of which is by county. Previous empirical and theoretical work offers con­tradictory conclusions. We review the theory, clarifying some issues. Our results confirm that free riding increases as congregations grow larger, an effect mitigated by the increasing level of services offered as congregations grow. Importantly, compe­tition between Baptist congregations reduces and competition with non-Baptist congregations increases per member donations.