ABSTRACT
In Chapter 3 the demand for non-profit organizations was discussed, and in Chapter 4 we turned to their supply, confining ourselves to organizations founded by entrepreneurs who run them themselves, or, more generally, organizations whose behaviour is under their exclusive control. Here, we go deeper into the economics of multi-layered nonprofit organizations, considering boards, managers and other (voluntary and paid) staff members. The basic microeconomic framework for this will be a principal-agent conceptualization.
