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Understanding Nonprofit Transparency: The Limits of Formal Regulation in the American Nonprofit Sector

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  • Kathleen Hale

Abstract

This article describes and analyzes the regulation of transparency in American nonprofit organizations in comparison to similar regulation of American public sector agencies. Transparency is a symbol for accountability and a critically important dimension of nonprofit organizations, which are private and voluntary but chartered by government for public purposes. Federal policy aimed at nonprofit transparency relies on formal regulation, and some guidance can be drawn from examining nonprofit regulation in comparison to the formal regulatory schemes designed to ensure transparency of public sector government agencies. However, formal transparency regulation of nonprofits is not as extensive as that of the public sector, and current illustrations from the nonprofit arena indicate that formal regulation does not address typical public concerns about nonprofit transparency. Instead, nonprofits may need to turn to normative sector values, including trust and collaboration, in order to be considered transparent in the current environment.

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  • Kathleen Hale, 2013. "Understanding Nonprofit Transparency: The Limits of Formal Regulation in the American Nonprofit Sector," International Review of Public Administration, Taylor & Francis Journals, vol. 18(3), pages 31-49, December.
    • Handle: RePEc:taf:rrpaxx:v:18:y:2013:i:3:p:31-49
    DOI: 10.1080/12294659.2013.10805262
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    Cited by:

    1. Cristina Ortega-Rodríguez & Ana Licerán-Gutiérrez & Antonio Luis Moreno-Albarracín, 2020. "Transparency as a Key Element in Accountability in Non-Profit Organizations: A Systematic Literature Review," Sustainability, MDPI, vol. 12(14), pages 1-22, July.
    2. Antonio Luis Moreno-Albarracín & Ana Licerán-Gutierrez & Cristina Ortega-Rodríguez & Álvaro Labella & Rosa M. Rodríguez, 2020. "Measuring What Is Not Seen—Transparency and Good Governance Nonprofit Indicators to Overcome the Limitations of Accounting Models," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    3. Rissman, Adena R. & Morris, Amy W. & Kalinin, Alexey & Kohl, Patrice A. & Parker, Dominic P. & Selles, Owen, 2019. "Private organizations, public data: Land trust choices about mapping conservation easements," Land Use Policy, Elsevier, vol. 89(C).

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