Regulating Small and Medium Charities: Does It Improve Transparency and Accountability?

  • Carolyn Cordery
  • VOLUNTAS International Journal of Voluntary and Nonprofit Organizations, June 2013, Springer Science + Business Media
  • DOI: 10.1007/s11266-013-9381-6

What is it about?

This paper considers the impact of a light- handed enforcement regime on small and medium charities’ reporting. It analyses the financial reporting practices of such charities registered with the New Zealand charities regulator. It predicts how the regulator’s activities might impact charities' future reporting practices .

Why is it important?

Internationally, there has been a steady increase in the number of countries instigating charity regulation. Theory suggests that regulation reduces information asymmetry, protects (or encourages) a competitive market, and leads to better distribution of resources. But regulation comes with costs. This paper assesses what happens when a regulator tries to reduce costs and asks whether this 'light-handed approach' actually helps to achieve regulatory goals.


Professor Carolyn J Cordery
Aston University

I highlight that the data that is being made available may be flawed, and the way that the New Zealand regulator prioritises the marketplace rather than the reduction of information asymmetry and an increase in information quality and comparability.

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The following have contributed to this page: Professor Carolyn J Cordery