Nonprofit Governance: Are Related Board Members Bad for Nonprofits?

2021 ◽  
Author(s):  
Colleen M. Boland ◽  
Erica E Harris ◽  
Daniel G. Neely
Keyword(s):  
Nonprofit Organizations ◽  
Family Relationships ◽  
Reporting Quality ◽  
Board Members ◽  
Business Relationships ◽  
Nonprofit Governance ◽  
Excess Cash ◽  
Reporting Relationships

Following recommendations from a Congressional panel tasked with improving nonprofit governance, in 2005, the IRS began requiring nonprofit organizations to report the existence of family and business relationships among board members. We study these relationships and find they are common in U.S. nonprofits and not associated with assumed detrimental effects. Rather , we find that organizations reporting relationships between board members have less management spending, lower levels of excess cash, and better reporting quality, while receiving higher contributions. Further, using detailed disclosure information, we find that while both business and family relationships among board members are associated with less administrative spending, lower levels of excess cash, and higher contributions, family relationships are also associated with better reporting quality. Overall, our evidence supports the idea that relationships among board members do not harm nonprofit organizations.

scholarly journals A Conceptual Review On Strategic Human Resources Management And Planning In Non Profit Motive Organization

2018 ◽  
Vol 1 (1) ◽  
pp. 18-26
Author(s):  
Gyanendra Bikram Shah
Keyword(s):  
Nonprofit Organizations ◽  
Human Resources Management ◽  
Board Members ◽  
Profit Motive ◽  
Non Profit ◽  
Knowledge And Skills ◽  
Resources Management ◽  
Strategic Human Resources ◽  
Strategic Human Resources Management ◽  
Effective Delivery

The nonprofit and public sectors are facing significant numbers of impending retirements from the traditionalists and baby boomers in their workforces. In an effort to retain the knowledge base of an agency or to better serve its clients, some organizations have developed creative ways to encourage retirement-eligible employees to remain on the job. Public and nonprofit organizations are driven by the knowledge and skills their employees possess. It is shortsighted for elected officials, board members, funders, executives, and other agency leaders to dismiss the importance of SHRM. As important, organizations must reinforce the importance of human capital and the contribution that knowledge management makes to the effective delivery of services.  

Implementation of the alternative form of social service “foster home or senior citizens” in Irkutsk Region: empirical study of the problem

2021 ◽  
pp. 72-85
Author(s):  
Ekaterina Viktorovna Zimina ◽  
Ol'ga Gennad'evna Sedykh
Keyword(s):  
Nonprofit Organizations ◽  
Family Relationships ◽  
Social Service ◽  
Senior Citizens ◽  
Psychological State ◽  
Alternative Form ◽  
Social Entrepreneurs ◽  
Foster Home ◽  
Foster Homes ◽  
The Government

The object of this research is the senior citizens, who are the objects of close attention of the corresponding government bodies, institutions of social and medical care, nonprofit organizations, and social entrepreneurs. It is revealed that despite joint efforts of the government and society aimed at maintaining the quality of their lives, senior citizens, for various reasons, often find themselves lonely, deprived of the care of their families. Therefore, the subject of this research is the alternative form of social service for senior citizens – foster home. The article examines the social, economic, psychological, and sociological aspects of implementation of such service. Special attention is given to the concept of foster home for senior citizens, as a form of organization of life, which implies sharing living space and household of citizens who concluded a foster home agreement. The article explores such aspects as the procedure for creating foster families, basic statistical data, regional peculiarities, social and economic effectiveness. The studied indicators reveal the factors that impede the creation of more foster homes. The authors’ special contribution lies in systematization of the key indicators of social effectiveness of foster homes: improvement of psychological state of senior citizens, mending family relationships, joint overcoming of different household problems, mutual respect and help, living in a home environment, and revival of the traditions of family and community care for older generation.

Intragroup Conflict in Nonprofit Sport Boards

2010 ◽  
Vol 24 (3) ◽  
pp. 245-271 ◽  
Author(s):  
Shannon Hamm-Kerwin ◽  
Alison Doherty
Keyword(s):  
Nonprofit Organizations ◽  
Mediating Effect ◽  
Decision Quality ◽  
Relationship Conflict ◽  
Future Research ◽  
Board Members ◽  
Intragroup Conflict ◽  
Sport Organization ◽  
Process Conflict ◽  
Influential Variable

Conflict can significantly influence the performance of a group and the attitudes of their members. As with any organizational group, conflict is expected within the boards of nonprofit organizations. The purpose of this paper was to examine the nature of intragroup conflict in nonprofit sport boards, and its impact on perceived decision quality, board member satisfaction, and commitment to the board. Seventy-four provincial sport organization board members were surveyed. The results indicated that task, relationship, and process conflict were negatively related to decision quality, satisfaction, and commitment, and relationship conflict was the most influential variable on all three outcomes. The mediating effect of relationship conflict on the conflict to outcomes associations was also uncovered. The findings have implications for the management of relationship conflict in this context, as well as the management of task and process conflict which may trigger relationship conflict. Several areas for future research are presented.

Roles of the Board in Amateur Sport Organizations

1997 ◽  
Vol 11 (2) ◽  
pp. 160-176 ◽  
Author(s):  
Sue Inglis
Keyword(s):  
Nonprofit Organizations ◽  
Boards Of Directors ◽  
Theoretical Perspective ◽  
Community Relations ◽  
Board Members ◽  
Executive Directors ◽  
Sport Organizations ◽  
Amateur Sport ◽  
Board Roles ◽  
And Performance

Limited empirical data on the roles associated with boards of directors in nonprofit organizations are available, yet understanding the work of boards is vital to ensure the roles desired by organizational members and the roles required by the organization are being fulfilled. The roles or functions of boards in nonprofit organizations, as found in the management literature, were used to explore the roles associated with a sample of nonprofit amateur sport organizations. Data were generated from a survey of executive directors, volunteer presidents, and volunteer board members of sport organizations housed at Ontario's Provincial Sport Centre in Toronto. The survey data yielded a 4-factor subscale providing support for a theoretical perspective in assessing roles of the board in mission, planning, executive director, and community relations areas. Similarities and differences of respondents by gender and position on ratings of importance and performance for the board roles were explored with implications for board development discussed.

The Impact of Regulation on the U.S. Nonprofit Sector: Initial Evidence from the Nonprofit Integrity Act of 2004

2011 ◽  
Vol 25 (1) ◽  
pp. 107-125 ◽  
Author(s):  
Daniel G. Neely
Keyword(s):  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Nonprofit Sector ◽  
Reporting Quality ◽  
Charitable Organizations ◽  
Time Period ◽  
Financial Statement Audit ◽  
Before And After ◽  
Financial Scandals ◽  
The Impact

SYNOPSIS: The early 2000s revealed a series of high-profile financial frauds in the corporate and nonprofit sectors. In response to several of these financial scandals, California passed the Nonprofit Integrity Act (NIA) of 2004. This seminal piece of governance regulation sought to increase financial transparency and mitigate fundraising abuses by California charitable organizations. This study examines the characteristics of California charitable organizations before and after the Act to understand the initial impact the Act had on nonprofit organizations. Key findings from the study include limited reported improvement in financial reporting quality and an increase in accounting fees following the implementation of the Act. California nonprofits subject to the Act’s provisions did exhibit an increase in executive compensation following the implementation of the Act; however, the increase was less than that exhibited by the population of nonprofits during the same time period. Overall, the results of this study suggest that the initial impact of regulations similar to the NIA is greatest for organizations that did not previously have a financial statement audit.

Interlocking Boards in Nonprofit Organizations

2020 ◽  
Vol 34 (2) ◽  
pp. 1-17
Author(s):  
Rebecca I. Bloch ◽  
Erica E. Harris ◽  
Amanda N. Peterson
Keyword(s):  
Nonprofit Organizations ◽  
Nonprofit Sector ◽  
Academic Research ◽  
Data Availability ◽  
Shared Knowledge ◽  
Board Members ◽  
Washington Dc ◽  
For Profit ◽  
Governance Practices ◽  
The Impact

SYNOPSIS A board interlock occurs when a board member from one organization joins the board of a separate organization. This interlock forms a social network between board members, through which information, knowledge, practices, and policies flow between organizations. Academic research on for-profit entities suggests that interlocks are a conscious strategic choice made by organizations (Hallock 1997). We study board interlocks in the nonprofit sector. In doing so, we shed light on the impact of interlocking boards on nonprofit governance, organizational efficiency, and donations secured. Using a sample of more than 3,000 industry-diverse nonprofit organizations in the Washington, DC metropolitan area, we find that interlocked organizations have better governance practices and run more efficient operations, in line with the diffusion of best practices and shared knowledge and experience between organizations. Furthermore, we find that interlocked organizations report more donations, consistent with the expanded network provided by these relationships. Data Availability: The data used to perform this study are publicly available via GuideStar.

Fundación arteBA: supporting visual artists by promoting the art market

2012 ◽  
Vol 2 (6) ◽  
pp. 1-19
Author(s):  
Gabriel Berger ◽  
Carolina Gowland
Keyword(s):  
Strategic Management ◽  
Nonprofit Organizations ◽  
Latin American ◽  
Open Space ◽  
Board Members ◽  
Primary Role ◽  
Board Meeting ◽  
Content Type ◽  
Social Organizations ◽  
For Profit

Subject area Strategic management of nonprofit organizations. Study level/applicability This case is appropriate for graduate level program/executive education courses; advanced topics in nonprofit management or strategic management of nonprofit organizations. Case overview This case focuses on the central dilemma faced by arteBA Foundation in 2008. arteBA Foundation's chairman, Facundo Gómez Minujín, received an offer from a foreign company to purchase the art fair launched 17 years before – and by then acknowledged as the most prestigious fair in Latin America. Leading art fairs around the world were managed by for-profit companies that could view arteBA as a strategic asset to tap into new markets. Gómez Minujín called for an urgent board meeting. The young chairman had his qualms about selling the fair. In addition to corroborating arteBA's brand positioning in the region and rewarding the organization's efforts over the years, this purchasing offer afforded the possibility to undertake several projects to further develop and promote Argentine art – the true driver for most arteBA's members. The case describes the foundation's background and the fair's growth until the crossroads in November 2008. They include several accounts of instances in which the foundation took financial risks to enhance the fair's positioning, such as granting subsidized space to emerging galleries at its Young Neighborhood Program, expanding to include aesthetically risky offerings at its Open Space section, and financially supporting Brazilian galleries to attend the fair in order to enhance its Latin American scope and regional consolidation. Similarly, the case depicts how the foundation chose to uphold fair continuity in critical years (2001) amidst a dismal domestic setting. The dilemma presented by this case hinges on an organization's ability to build a market-based venture while preserving and pursuing its mission. To promote Argentine artists and art, arteBA Foundation had to help art galleries – for-profit businesses – to adopt more professional practices. Another challenge described in this case revolves around the need to “manage quality” in detriment of greater, immediate revenues. The last section revisits the central dilemma faced by arteBA Foundation. The mixed reactions of board members on the fair's purchase offer described in the introduction unfolded in a passionate debate at the board meeting. Two prevailing positions emerged in reference to the future of the organization. For some board members selling the fair afforded arteBA a chance to finally undertake new challenges, such as launching a grant program, offering financial support to artists, consolidating a new venture (South Limit), etc. Opposing board members contended that, without the fair, the foundation made no sense and that no other initiative could have such an impact on its field of choice. Finally, the board found it impossible to reach a decision on this matter in just one meeting and decided to resume its discussion after a recess. Expected learning outcomes This case has been designed to advance the following teaching objectives: gaining a better understanding of market-based ventures carried out by social organizations; discussing the alignment of market-based ventures to social missions at social organizations; adequately interpreting market trends to try to align them to a nonprofit's mission; identifying the primary capabilities needed by social organizations to manage profitable market-based ventures; developing a positive market orientation as a source of opportunities for a nonprofit; appreciating the significance of an active, committed board for market-based venture development; and highlighting the primary role of entrepreneurship and innovation when it comes to launching market-based ventures that add value to a nonprofit's brand. Supplementary materials Teaching notes are available.

scholarly journals Controlling for Corporate Governance in Nonprofit Research

2020 ◽  
Author(s):  
Colleen M. Boland ◽  
Erica E. Harris ◽  
Christine Petrovits ◽  
Michelle H. Yetman
Keyword(s):  
United States ◽  
Corporate Governance ◽  
Nonprofit Organizations ◽  
Executive Compensation ◽  
Audit Committee ◽  
Reporting Quality ◽  
The United States ◽  
Composite Measures ◽  
Nonprofit Funding ◽  
Better Than

Using a large sample of nonprofit organizations in the United States reporting governance information on their IRS Forms 990, we develop and evaluate several different composite measures of nonprofit governance. These measures can be used to control for governance broadly in a variety of settings, including research that examines nonprofit funding, reporting quality, and executive compensation. Our results suggest that relatively basic indices perform as well as, and in some cases better than, more complex indices. In fact, when controlling for governance in the standard donations model, the collective evidence indicates that an index computed using the simple sum of five binary indicators (audit committee, majority independent board, no outsourcing, CEO salary review, and information available on website) performs best.

scholarly journals Approach to management by processes in a sports department of a local government organization

Motricidade ◽  
2018 ◽  
Vol 14 (2-3) ◽  
pp. 79-94 ◽  
Author(s):  
Pedro Alexandre Sobreiro ◽  
Rita Santos-Rocha ◽  
Rui Claudino ◽  
António Serôdio
Keyword(s):  
Nonprofit Organizations ◽  
Business Process Management ◽  
Process Management ◽  
Action Plan ◽  
Board Members ◽  
Government Organization ◽  
Sports Organizations ◽  
Surrounding Environment ◽  
Sports Organization ◽  
Manager Training

The strategy creates assumptions that should reflect the organization and the surrounding environment. The difficulties in the operationalization of the strategy and the lack of resources for the nonprofit sports organization require effective approaches. This study uses the Business Process Management to support the strategy operationalization using improvement actions according to the existing circumstances of each organization. Based on the action research we analyze the existing situation of nonprofit sports organizations and identify the line of actions to achieve the municipality intended outcomes. The lack of financial resources requires the identification of improvements according to the existing resources. The assessment of the concerns and issues related to stakeholders provides a mechanism to clarify which improvement action should be developed considering the involvement of different board members of the organization. The manager training in nonprofit organizations is an important area to target actions to contribute to the development of the nonprofit organizations, increasing their knowledge. Our findings highlight how the proposed approach can be used in nonprofit sports organization to develop an action plan to engage their business objectives according to its environment.

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