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Article

Incentivizing Regulatory Participation: Effectiveness of a Fundraising Levy

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Citation

Rutherford A, McDonnell D & Hogg E (2021) Incentivizing Regulatory Participation: Effectiveness of a Fundraising Levy. Public Administration Review, 81 (3), pp. 532-542. https://doi.org/10.1111/puar.13176

Abstract
In the absence of a statutory instrument to enforce payment of a regulatory fee, regulators are reliant on a combination of ¡®carrots¡¯ and ¡®sticks¡¯ to encourage financial contribution by the bodies they oversee. In contrast to extant studies of public funding of nonprofits, we empirically evaluate the effectiveness of a government policy to rely on nonprofit funding of statutory regulation. We exploit a sharp discontinuity in the eligibility threshold for charities contributing to a new Fundraising Regulator in England & Wales in order to estimate a causal effect of the levy on participation. We show that the regulator¡¯s threat to ¡®name and shame¡¯ was very effective in incentivizing regulatory participation and generating income, but raise some concerns about the long-term viability of this approach. The results are significant at a time when many jurisdictions are considering how best to fund the regulation of nonprofits.

Journal
Public Administration Review: Volume 81, Issue 3

StatusPublished
Publication date31/05/2021
Publication date online18/03/2020
Date accepted by journal17/02/2020
URL
ISSN0033-3352
eISSN1540-6210

People (1)

Professor Alasdair Rutherford

Professor Alasdair Rutherford

Professor, Sociology, Social Policy & Criminology

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