Abstract
Applying O.E. Williamson’s transaction cost theory to nonprofit organizations (NPOs) (Krashinsky 1986) and using the concept of “trans-action,” defined as “actions between individuals,” as presented by J.R. Commons, we will demonstrate from the point of view of economics how an environmental NPO can be described organizationally as a bundle of trans-actions that is governed by an element of trust. (Our point of view is somewhat analogous to Williamson’s view of a corporate organization as an institution of governance rather than a provider of goods and services.)
