How Collective Action Problems Suppress Participation in Nonprofit Trade Associations

In seeking to understand how nonprofits participate in policymaking at the state level, scholars of the third sector tend to overlook or assume a barrier to this activity: collective action problems. I show that such problems suppress charter school participation in their trade associations. An analysis of original survey data and informant interviews combined with Internal Revenue Service data for the complete set of charter membership associations in the United States demonstrates that schools' participation in these collectives follows a classic pattern of collective action problems: In states where the number of potential members is high, participation rates are lower. Across states, the size of the population of schools eligible for membership better explains variation in participation than other factors typically deemed important by scholars, such as organizational resources and policy environments. The finding supports the argument that large numbers inhibit participation in associations that pursue collective goods for their industry.