Why Do Foundations Follow the Law? Evidence from Adoption of the Uniform Prudent Management of Institutional Funds Act

Employing a large panel of over one million firm‐years, I find evidence consistent with widespread compliance with law among U.S. private foundations despite the absence of many formal deterrence mechanisms. The research design exploits rolling state adoption of the Uniform Prudent Management of Institutional Funds Act, which lifted some existing limits on firm spending for a fraction of firms within each state. This allows the use of triple‐difference estimates that control for changes in local norms and economic conditions. UPMIFA increases firm spending, on average, implying that firms were complying with the pre‐UPMIFA regime. Interacting the triple‐difference factors with other predictors of compliance reveals no correlation between compliance and enforcement intensity, but some evidence that compliance is correlated with firm culture and reliance on accountants. These findings have potentially important implications for the governance of charitable organizations, and may speak more generally to drivers of compliance among other organizational forms.     

Mobilizing from the Margins: Domestic Citizen Politics and Yasukuni Shrine

Prime Minister Koizumi’s six consecutive annual visits to Yasukuni shrine played a key role in initiating a new phase of domestic citizen political mobilization not seen since the early 1970s. This paper is based on field research during the Koizumi years (2001–2006) centering on domestic groups that conduct activities in “protection” of or “opposition” to Yasukuni shrine. As a study of street-based politics, this paper seeks to uncover the processes, strategies, and outcomes of citizen responses to elite political action at Yasukuni Shrine as well as explore meaning of their actions within the context of Japan’s democratic polity.