Determinants of Financial Information Published by Private Not‐For‐Profit Organisations

This is a descriptive study examining the determinants of disclosure for Not‐for‐Profit Organisations (NFPOs). The hypothesised determinants were identified by a review of the determinants identified in other studies and by reference to agency theory. These were analysed for significance using as dependent variables accounting policies and items of financial disclosure which have been suggested for adoption or disclosure by NFPOs. It was found that six of the hypothesised determinants (gross income, number of members, the presence of a professional administrator, geographic dispersion of members, and auditing of the financial statements) were significant factors influencing disclosure. Nature of the organisation, accounting experience of the person preparing the financial statements, and use of outside credit facilities were found not to be significant determinants.