Maintaining registration and tax benefits: Consequences for professionalisation of voluntary membership organisations in Norway and the UK

Abstract

This article investigates how regulation related to maintaining state registration and tax beneficial status affects professionalisation, covering paid staff and volunteers with specialist skills, of political parties, advocacy groups and service providing organisations. The article fills a gap in the literature which until now has been mainly concerned with the influence of state funding on professionalisation. To study the consequences of first-time exposure to reporting requirements, eight organisations in two contrasting regulatory regimes, UK and Norway are analysed, on the basis of extensive documents and a series of semi-structured interviews with different organisational actors. The study finds that organisations – irrespective of type - exposed to constraining regulation adjust to reporting requirements through recruitment of specialised personnel. Organisations’ financial capacity determines whether the organisation professionalises by taking on specialist volunteers or by taking on paid staff. The study demonstrates the pervasive impact of regulation on organisational maintenance of voluntary membership organisations in contemporary democracies.