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THE ECONOMICS OF THE NON-DISTRIBUTION CONSTRAINT: A CRITICAL REAPPRAISAL.
- Source :
- Annals of Public & Cooperative Economics; Mar2008, Vol. 79 Issue 1, p35-52, 18p
- Publication Year :
- 2008
-
Abstract
- This paper re-examines the non-distribution constraint as a key structural feature of non-profit organization. It argues that its traditional understanding as a trustworthiness-enhancing device is incomplete. This paper shows that the non-distribution constraint is also a reflection of the directly utility-enhancing character of involvement in non-profit firms for their key stakeholders. This alternative explanation allows one to solve the central puzzle of trustworthiness theory: why doesn't the non-distribution constraint destroy entrepreneurial motivation? Additionally, it helps one to understand the role of the non-distribution constraint in economic theories of non-profit organization that do not rely on trustworthiness theory. Finally, it enables one to logically integrate the different economic theories of non-profit organization. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 13704788
- Volume :
- 79
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Annals of Public & Cooperative Economics
- Publication Type :
- Academic Journal
- Accession number :
- 29412402
- Full Text :
- https://doi.org/10.1111/j.1467-8292.2007.00351.x