The Influence of Demographics and Distance on Nonprofit Location

Abstract

This article investigates the relationship between socioeconomic characteristics and the provision of nonprofit services for census block groups in Dallas County, Texas. We find that the number of health, education, and social service nonprofits in a given area is positively influenced by block group income, age, percentage minority, and racial heterogeneity, and negatively influenced by income heterogeneity and age heterogeneity. On further examination, we find a complex pattern of relationships between income and age and number of providers that suggests researchers should exercise caution when using these variables. Also, in all of our results the effects of the demographic variables are by far the strongest for nonprofits within one mile of the block group centroid; they weaken as they get farther from the centroid. This shows that nonprofits are most heavily influenced by the characteristics of the neighborhoods directly around them.