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


Internationally, there has been a steady increase in the number of countries instigating charity regulation. Public interest theory suggests that regulation increases organisational transparency through reducing information asymmetry, protects (or encourages) a competitive market, and leads to a distribution of resources which is in the public interest. While these arguments may explain charity regulation, the cost of compliance can be an issue for small- and medium-sized charities. Therefore, regulators tend to take a light-handed approach to small and medium charities’ information provision. This paper ascertains the impact of a light- handed enforcement regime on small and medium charities’ reporting, analysing the financial reporting practices of a selection of 300 small- and medium-sized charities registered with the former New Zealand Charities Commission against the Charities Act 2005 requirements and hence the rationale for this regulator. It uses this analysis to predict how the regulator’s activities might impact future reporting practices of charities.

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Divisions: College of Business and Social Sciences > Aston Business School > Accounting
College of Business and Social Sciences > Aston Business School
Additional Information: © Springer Nature B.V. 2013. The final publication is available at Springer via
Publication ISSN: 0957-8765
Last Modified: 11 Apr 2024 07:13
Date Deposited: 08 Jul 2019 13:30
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Related URLs: https://link.sp ... 1266-013-9381-6 (Publisher URL)
PURE Output Type: Article
Published Date: 2013-06-18
Authors: Cordery, Carolyn (ORCID Profile 0000-0001-9511-7671)



Version: Accepted Version

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