No. 259: What Do NPOs Disclose? Evidence from Germany

German non-profit organizations (NPOs) face few statutory public-disclosure requirements, yet they depend on donations from donors who cannot compare them on a common reporting standard. We take stock of what large German NPOs voluntarily disclose and examine which organizational characteristics are associated with these choices. Based on hand-collected data for 238 large recipients of donations, we code whether NPOs disclose a balance sheet, the share of funds spent on projects, and verifiable information on output, outcome and impact, where verifiability decreases from output to impact. Verifiable output information is almost universal (90%), whereas verifiable outcome (52%) and impact (24%) information, and the project cost ratio (24%), are far less common. Displaying an external certification is associated with disclosing the cost ratio and performance information, while disclosing an external auditor is associated with disclosing financial statements. Disclosing the amount of private donations is associated with disclosing the cost ratio, and older and religiously owned NPOs disclose less. The results are descriptive and are intended as a basis for theory building on NPO disclosure.