Misuse, misunderstanding and misinterpretation of nonprofit accounting information

Jesse D. Lecy, Elizabeth A.M. Searing and Tianyi Li

Chapter 4 in Research Handbook on Nonprofit Accounting, 2023, pp 57-79 from Edward Elgar Publishing

Abstract: This chapter investigates different ways that accounting information is often misused, whether by accident or design. Transparency and stakeholder involvement encourage the publication of accounting information. However, there are four main concerns: (1) misuse of administrative expenses; (2) misperceptions about fundraising expenses; (3) a lack of technical expertise; and (4) the use of accounting information for sensationalist purposes. Additional work on performance metrics and collaborative work digging into donor and managerial preferences and decision-making all hold promise to combat these dysfunctions.

Keywords: Business and Management; Economics and Finance; Research Methods (search for similar items in EconPapers)
Date: 2023
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