Nonprofit and Voluntary Sector Quarterly 44(1): 75-97.
Secondly, I just can't agree that third sector governance is derived from for-profit principles. It is - mostly - derived from philanthropic principles (or mutual principles inside the social economy). There is, however, some common practices, but not for the reasons described. Just as the wealthy entrepreneur seeks to control the private enterprise through shareholdings, so the wealthy philanthropist seeks to control the non-profit enterprise through trust law. In both cases, Principle-Agent assumptions apply, but not because both are based on for-profit assumptions. These apply in both cases because funding is sought from wealthy providers with the power to frame laws that require their investees to use the money for the purposes stimpulated by them. In the social economy (associations, mutuals and cooperatives) the legal structures and accountabilities are different (and are captured well in the paper). Associations, mutuals and cooperatives, however, are not dependent on the patronage of the rich, but the patronage of the many, and their mass member legal structures and accountability mechanisms reflect this.