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Not-for-Profit Annual Reports: What Do Museum Managers Communicate?

This study addresses: (1) What disclosures are provided in annual reports of not-for-profit entities? (2) What characteristics of the reporting entities explain variations in the quantity of financial disclosure? (3) How do not-for-profit disclosures compare with those in for-profit corporate reports? The annual reports of 170 not-for-profit museums were examined. The reports were highly variable. Some contained no financial data and only 22 percent included complete financial statements with footnotes. Regression analysis indicated that the amount of museum financial data was positively associated with museum size, a larger number of pages of donor disclosures, and museum type (art and history, but not science, natural history, or general).