Donor governance and financial management in prominent US art museums

  title={Donor governance and financial management in prominent US art museums},
  author={David Larry Yermack},
  journal={Journal of Cultural Economics},
I study “donor governance,” which occurs when contributors to nonprofit firms place restrictions on their gifts to limit the discretion of managers. In a study of US art museums, I find that this practice has grown significantly in recent years, and it represents the largest source of permanent capital in the industry. When donor restrictions are strong, museums shift their cost structures away from administration and toward program services, and they exhibit very high savings rates, retaining… CONTINUE READING


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