The American Review of Public Administration, Ahead of Print.
This study examines the impact of religious environments on the jurisdictional density of nonprofit organizations. It has been argued that religiosity can affect nonprofit activities by promoting prosocial attitudes, collectivism, collaborating and bonding, and business ethics. While prior research has investigated the effects of religiosity on various aspects associated with nonprofit activities, such as volunteering, generosity, nonprofit management, and prosocial attitudes, there remains a dearth of studies exploring the direct relationship between religious environment and the size of nonprofit sectors. Existing research yields mixed results with certain limitations. This research addresses these limitations and finds that a more vibrant religious environment contributes to a higher density of both religious and nonreligious nonprofit organizations. The study also finds that the effect is more pronounced in areas with a higher government presence. This finding is consistent with the prediction of interdependence theory but not government failure theory.