Determinants of Nonprofit Lobby Expense

• In Event: NonProfit Accounting
  In Paper Session: Nonprofit Accounting

Abstract

Our research investigates the determinants of nonprofit lobbying activity as well as the integrity of nonprofit lobby reporting. We analyze almost 57,000 observations and find that hospitals, higher education and environmental industries are the top three types of lobbying nonprofits. We also find that larger nonprofits with larger boards are more likely to engage in lobbying activities. Additional cross-sectional characteristics explaining nonprofit lobbying include audited financials and more program service and government grant funding. In addition, we develop a multivariate prediction model to examine whether nonprofits under-report lobby expense. Results indicate 24 percent of our sample substantially under-report lobby expenditures, with the higher education and hospital sectors under-reporting most often.

Authors

• Erica Harris, Rutgers University - Camden

• Ryan D Leece, University of Alabama at Birmingham

• Daniel Gordon Neely, University of Wisconsin-Milwaukee