Table of Contents

The IRS's Misuse of Scarce Compliance Resources in the Exempt Organization Area

George K. Yin, University of Virginia School of Law

Executive Compensation and Regulation Imposed Governance: Evidence from the California Nonprofit Integrity Act (2004)

Sandip Dhole, University of Melbourne - Department of Accounting and Business Information Systems
Saleha Khumawala, University of Houston - C.T. Bauer College of Business
Sagarika Mishra, Deakin University
Tharindra Ranasinghe, Singapore Management University - School of Accountancy


NONPROFIT & PHILANTHROPY LAW eJOURNAL

"The IRS's Misuse of Scarce Compliance Resources in the Exempt Organization Area" Free Download
Virginia Public Law and Legal Theory Research Paper No. 72

GEORGE K. YIN, University of Virginia School of Law
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This paper briefly explains why the IRS’s adoption of an abbreviated application form (Form 1023-EZ) for organizations seeking recognition of their tax exemption under section 501(c)(3) results in a misuse of scarce compliance resources in the exempt organization area.

"Executive Compensation and Regulation Imposed Governance: Evidence from the California Nonprofit Integrity Act (2004)" 
Accounting Review, Forthcoming

SANDIP DHOLE, University of Melbourne - Department of Accounting and Business Information Systems
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SALEHA KHUMAWALA, University of Houston - C.T. Bauer College of Business
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SAGARIKA MISHRA, Deakin University
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THARINDRA RANASINGHE, Singapore Management University - School of Accountancy
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This study examines the impact of the California Nonprofit Integrity Act (2004) on CEO compensation costs in affected organizations. Contrary to the stated objective of the Act that executive compensation be “just and reasonable,? we find that CEO compensation costs for affected nonprofits during the post-regulation periods have increased by about 6.3 percent more when compared with a control group of comparable unaffected nonprofits. In addition, the relative increase in CEO compensation appears to come from nonprofits that have experienced greater regulatory cost increases. We do not find evidence that the Act resulted in a change in CEO pay performance sensitivity. The observed CEO pay increase is not systematically different across nonprofits that underpaid versus those that overpaid their CEOs during pre-Act periods. Overall, this paper highlights the unintended consequences of regulatory attempts to enhance governance in the not-for-profit sector.

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Advisory Board

Nonprofit & Philanthropy Law eJournal

ELLEN P. APRILL
John E. Anderson Professor of Tax Law, Associate Dean for Academic Programs, Loyola Law School Los Angeles

EVELYN BRODY
Professor of Law, Chicago-Kent College of Law

JOHN DAVID COLOMBO
Albert E. Jenner, Jr. Professor of Law, University of Illinois College of Law

HARVEY P. DALE
University Professor of Philanthropy and the Law, Director - National Center on Philanthropy and the Law, New York University School of Law

DARRYLL K. JONES
Professor of Law, Stetson University College of Law

BEVERLY I. MORAN
Professor of Law and Sociology, Vanderbilt University - Law School

STEPHEN SCHWARZ
Professor of Law Emeritus, University of California, Hastings College of the Law

STEVEN J. WILLIS
Professor of Law, University of Florida - Fredric G. Levin College of Law