Tremblay-Boire et al.: Monitoring and Sanctioning in Nonprofit Accountability Clubs

Joannie Tremblay-Boire (Georgia State University Andrew Young School of Policy Studies), Aseem Prakash (University of Washington Political Science), and Mary Kay Gugerty (University of Washington Evans School of Public Policy & Governance) have published Regulation by Regulation: Monitoring and Sanctioning in Nonprofit Accountability Clubs, 76 Public Administration Review 712 (2016). Here is the abstract:

Nonprofits seek to enhance their reputation for responsible management by joining voluntary regulation mechanisms such as accountability clubs. Because external stakeholders cannot fully observe nonprofits’ compliance with club obligations, clubs incorporate mechanisms to monitor compliance and impose sanctions. Yet including monitoring and sanctioning mechanisms increases the cost of club membership for nonprofits. What factors account for the variation in the strength of monitoring and sanctioning mechanisms in voluntary accountability clubs? An analysis of 224 clubs suggests that stringent monitoring and sanctioning mechanisms are more likely in fund-raising-focused clubs, clubs that offer certification (as opposed to only outlining a code of conduct), and clubs with greater longevity. The macro context in which clubs function also shapes their institutional design: clubs in OECD countries and clubs with global membership are less likely to incorporate monitoring and sanctioning mechanisms than clubs in non-OECD countries and single-country clubs, respectively.

Lloyd Mayer