Brian D. Galle’s research while affiliated with Georgetown University and other places

... Most regulators have left resolution of these recent informational challenges to the private sector to solve (Reiser & Dean, 2017). For example, in Delaware, a leading U.S. jurisdiction for development of corporate law, social enterprise firms may, but need not, offer the public any information about their performance or decision processes on metrics unrelated to profit (Galle, 2019). Likewise, approaches to crowdfunding regulation for the most part allow platform operators to decide for themselves what information fundraisers must provide (Cascino et al., 2019;Kim & Park, 2019). ...

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Does Mandatory Disclosure Matter? The Case of Nonprofit Fundraising

... First, the nondistribution constraint prevents nonprofits from raising funds through the sale of equity shares. Nonprofits are often said to have no owners, or rather to have "attenuated ownership" ( Steinberg and Galle 2018 ). Although controlling persons can determine how a nonprofit's assets are to be used, they are prohibited from personally (excessively) benefiting from the sale, acquisition, or use of a charity's assets. ...

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Understanding the Limits of Transnational NGO Power: Forms, Norms, and the Architecture

... Optimal enforcement theory suggests that multiple enforcement instruments can be desirable when the target population has heterogeneous sensitivity to each instrument (Slemrod and Gillitzer 2013), and this can hold even for transferless instruments in some cases (Galle and Mungan 2021). ...

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Essays in Public Finance and Taxation

... Numerous empirical studies in the United States and in other countries provide evidence of donor aversion to fundraising costs. Barber, Farwell, and Galle (2022) conducted large-scale natural experiments involving US IRS Form 990 data and argued that donors penalize organizations with high fundraising costs. When there is mandatory disclosure by a third-party reporter, nonprofits with low fundraising costs fundraise more successfully when the disclosures exist. ...

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Misuse, misunderstanding and misinterpretation of nonprofit accounting information

... For instance, evidence regarding the alteration of specific firm policies indicates that such actions can have important effects, albeit differentially for under-or overperforming firms (Zhang 2016). Interestingly, recent evidence regarding crowdfunding platform interventions indicates that interventions aimed at increasing the level of mandatory information disclosed within campaigns, such as those enacted by Kickstarter, can result in a reduced level of support from potential backers as a result of such regulations (Barber, Farwell, and Galle 2020;Kim et al. 2019). Based upon these perspectives, we examine how specific policy changes with regards to the types of content allowed in Kickstarter campaigns resulted in important alterations in the use and effectiveness of specific forms of rhetorical language, as well as in the likelihood of campaign success and the potential penalty that campaigns might face for having an extended duration that they are available on the platform. ...

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Talk is cheap?! The value of a ban on product simulations and renderings on a crowdfunding platform

... Second, discussion about whether there is 'too much' delay typically lacks a normative point of reference (other than sporadic references to agency costssee, e.g. Galle 2021). Typically the reference point is the payout rate or flow rate of private foundations. ...

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Donor Advised Funds & Delay: An Intergenerational Justice Solution?

... Apart from watchdog websites, other forms of external governance mechanisms might have an effect on donations. Galle (2017) xxi documents that, for foundations, the possibility for donors to sue "wayward managers of nonprofits" (Galle, 2017, p. 413) increases donations by between 5.5 and 14.7%, depending on the specification used. Moreover, this goes together with a reduction of administrative overhead, at least giving the impression that governance costs are externalized. ...

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Business Practices in Nonprofit Funding

... If newly disclosed fundraising ratios reduce the marginal returns to fundraising, disclosure would put pressure on the organizational bottom line. Organizations under financial pressure tend to engage in more fundraising, not less (Andreoni & Payne, 2011;Galle, 2017). ...

Reference:

Does Mandatory Disclosure Matter? The Case of Nonprofit Fundraising

... The enforcement regime is therefore considered an important factor affecting compliance (i.e., impacting the estimated benefits of compliance) and it should therefore not come as a surprise that much regulatory enforcement relies on a deterrent approach that is inspired by the belief that increasing enforcement will positively affect compliance (Winter & May, 2001). Prior research (see e.g., Short & Toffel, 2008;Parker & Lehman Nielsen, 2011;Galle, 2017) generally confirms a positive relationship between enforcement intensity and compliance with regulation. Results further indicate that it is the probability of detection, rather than the severity of the sanction, that positively affects compliance (see e.g., Parker & Lehman Nielsen, 2011;Galle, 2017). ...

Reference:

To comply, or not to comply: the question is why

... 16 See Hotelling (1929). 17 The symbol that we use to indicate a case is the first letter of the Greek translation. Furthermore, it is worth noting that, strictly speaking, there is a forth 'predatory pricing situation' where one of the firms prices so low that it captures the entire market. ...

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Anti-Consumerism: Stick or Carrot?