In-kind government assistance and crowd-out of charitable services: Evidence from free school meals

Abstract

Many community organizations provide services similar to government programs, but there is limited evidence how increased government aid affects the use and availability of charitable services. This study examines how greater access to federal nutrition assistance through schoolwide free meal programs affects food bank use within the U.S.’s largest food bank network. A 10 percent increase in access to free school meals reduces the amount of food that food banks distribute by 0.9–1.4 percent, without significantly reducing donations, fundraising activity, or the amount of food available. The reduction of food bank use is only found in areas where relatively few students previously qualified for government aid. Our findings highlight that even safety net programs that serve a specific population and offer distinct services can reduce pressures on charitable organizations, particularly in areas previously underserved by government assistance.