Hidden in Plain Sight: The Role of Corporate Board of Directors in Public Charity Lobbying

We show that public charities with corporate directors on their boards spend more on lobbying for connected firms' industry interests. The effects of board connections are stronger when firms have greater lobbying expenditures themselves or when charities are constrained on funding. We rule out spurious factors with firm-charity pair fixed effects, and address reverse causality concerns using director turnovers as shocks to connections. Consistent with quid-pro-quo relationships, we find that connected firms benefit from increased procurement contracts, and that connected charities receive more grants and donations. Our results highlight executive charitable engagement as a complementary avenue for corporate political activities.