Exploring the Factors Associated with Online Financial and Performance Disclosure in Nonprofits

Abstract

Informed by theories of technological innovation, this paper develops and empirically tests a web disclosure adoption model. In order to test the model, a questionnaire was administered to a sample of 775 organizations in an eight-county regional area in the Northeastern United States. Results reveal that Chief Executive Officer (CEO) and organizational characteristics are related to web disclosure adoption. Specifically, there is more disclosure of performance information online when the CEO believes that the web is useful for promoting transparency and accountability, when the organization views the web as a communication or strategic tool, when more employees have technical expertise, and when the board of directors is more supportive of web technology. We found more web disclosure of financial information when the organization possesses the technological readiness for web disclosure. This paper contributes to research by identifying the main factors that facilitate web disclosure adoption in nonprofit contexts.