| Article ID: | iaor19992763 |
| Country: | United States |
| Volume: | 10 |
| Issue: | 4 |
| Start Page Number: | 499 |
| End Page Number: | 512 |
| Publication Date: | Jan 1998 |
| Journal: | Journal of Public Budgeting, Accounting and Financial Management |
| Authors: | Brooks Richard C., Pearson Timothy A., Neidermeyer Adolph A. |
| Keywords: | management, organization, statistics: regression |
This research uses data from 2,470 not-for-profit-organizations (NFPOs) to examine the impact of organization size, risk, and complexity on monitoring costs in the NFP sector. OLS regression analysis indicates that monitoring costs are higher for (a) larger NFPOs, (b) NFPOs subject to the Single Audit Act, (c) NFPOs having larger amounts of assets tied up in receivables and inventories, (d) NFPOs spending a larger percentage of their expenses on program support services, and (e) NFPOs providing higher compensation to their officers and directors. In addition, some NFPOs such as schools and hospitals are associated with higher monitoring costs.