How do public regulations shape the composition and behavior of non-governmental organizations (NGOs)? Because many NGOs advocate for liberal causes such as human rights, democracy, and gender equality, they upset the political status quo. At the same time, a large number of NGOs operating in...

This paper examines how information problems can cause agency slippages and lead to governance failures in nonprofits. Drawing on the principal-agent literature, we provide a theoretical account of an institutional mechanism, namely voluntary regulation programs, to mitigate such slippages....