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BY-NC-ND 3.0 license Open Access Published by De Gruyter May 17, 2011

The Importance of Corporation Law to Civil Society

  • Woods Bowman
From the journal Nonprofit Policy Forum

The thesis of this paper is that transactions costs related to formation of nonprofit corporations are restraining the size of the nonprofit sector in Europe. An unfettered ability to incorporate is an important determinant of nonprofit formation. The point is illustrated with historical data from the United States. Given that an increasing number of nonprofits have transnational goals, the lack of a common regulatory regime for nonprofits in Europe raises transactions costs and stifles development of the nonprofit sector—just as the lack of a common regulatory regime for commerce prior to founding of the European Union had retarded business activity.

Published Online: 2011-5-17

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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