The Determinants of Charity Misconduct

Abstract

Authors' Note The authors would like to thank the Economic and Social Research Council(ESRC) and the Office of the Scottish Charity Regulator (OSCR) for their generous financial support of the research through a collaborative PhD studentship. In particular credit is due to Louise Meikleham and Judith Turbyne at OSCR for their substantial co-operation and feedback, and the anonymous reviewers for their insightful and constructive comments. DataThe data underpinning the analysis can be obtained by contacting the corresponding author, though it will be made available through an open-access repository in the near future. AbstractCharities in the UK have been the subject of intense media, political and public scrutiny in recent times; however our understanding of the nature, extent and determinants of charity misconduct is weak. Drawing upon a novel administrative dataset of 25,611 charities for the period 2006-2014 in Scotland, we develop models to predict two dimensions of charity misconduct: regulatory investigation and subsequent action. There have been 2,109 regulatory investigations of 1,566 Scottish charities over the study period, of which 31 percent resulted in regulatory action being taken. Complaints from members of the public are most likely to trigger an investigation, while the most common concerns relate to general governance and misappropriation of assets. Our multivariate analysis reveals a disconnect between the types of charities that are suspected of misconduct and those that are subject to subsequent regulatory action.

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