Table 1. Data source and descriptions

Variables Description Source
Nonprofit fraud Did the organization become aware during the year of a significant diversion of the organization’s assets? IRS Form 990Part VI Section A Q5
Governance policies Sum of internal governance IRS Form 990
 Form 990 transparency Provide a complete copy of Form 990 to its governing body. (Y/N)  Part VI Section B Q11a
 Conflict of interest policy Have a written conflict of interest policy? (Y/N)  Part VI Section B Q12a
 Annual disclosure of conflicts Annually disclose interests that could give rise to conflicts of interest. (Y/N)  Part VI Section B Q12b
 Policy monitoring and enforcement Regularly monitors and enforces compliance with its policies. (Y/N)  Part VI Section B Q12c
 Whistleblower policy Organization has a written whistleblower policy. (Y/N)  Part VI Section B Q13
 Document retention and destruction Organization has a written document retention and destruction policy. (Y/N)  Part VI Section B Q14
 Compensation process for CEO Top executive compensation approved. (Y/N)  Part VI Section B Q15a
 Compensation process for other Other key personnel compensation approved. (Y/N)  Part VI Section B Q15b
Financial audit systems Sum of external governance IRS Form 990
 Independent compilation or review Financial statements compiled or reviewed by an independent accountant (Y/N)  Part XII Q2a
 Independent audit Financial statements audited by an independent accountant (Y/N)  Part XII Q2b
 Audit oversight committee Organization has an audit committee (Y/N)  Part XII Q2c
Organizational characteristics IRS Form 990
 Board independence Total independent voting members/Total voting members  Part I Q3, Q4
 Board size Total number of voting members  Part I Q3
 Org size Total net asset (logged)
 Org age Age of the organization as of 2022 NCCS core File
 Employee Total number of individuals employed  Part I Q5
 Government grant If government grant>0 coded 1, others=0  Part VIII Q1e
 Donative org. If total contribution/total revenue>0.5 coded 1, others=0  Part I Q8
 Debt ratio Total liability/Total revenue  Part I Q21
 Family relation Any officer, director, trustee, or key employee have a family or business relationship with another? (Y/N)  Part VI Section A Q2
Location (urban=1) Nonprofits located in urban=1, rural=0 The Census Bureau’s urban-rural classification
Org, organization; IRS, Internal Revenue Service; NCCS, National Center for Charitable Statistics.