The Effects of Volunteering for Nonprofit Organizations on Social Capital Formation: Evidence from a Statewide Survey

Abstract

As membership in civic organizations declines in the United States, could volunteering for nonprofit organizations be an alternative source of social capital formation? After theoretically connecting volunteering with social capital using a household production framework, the authors then use a unique data set from Vermont to estimate the determinants of the probability of receiving a social capital benefit and the level of such a benefit. The probability of receiving a social capital benefit from one's most important nonprofit organization is increased: (a) if it is a religious or social service organization, (b) if one increases their volunteering for the organization, and (c) if one is female, college educated, or in a two-parent family. However, the relative magnitude of volunteering is similar, or relatively small, compared to the other significant determinants. An increase of volunteer hours does increase levels of social capital; however, the magnitude of this effect is also relatively small.