Enhancing Nonprofit Governance Through Better Information Flow to Directors

16 Pages Posted: 16 Aug 2012

See all articles by Robert Kenagy

Robert Kenagy

Indiana University

Mark Fox

Indiana University South Bend

David Vollrath

Indiana University South Bend - School of Business and Economics

Date Written: August 13, 2012

Abstract

To counteract the ability of a nonprofit’s chief executive officer to control information reaching the board of directors, we recommend that a nonprofit board consider requiring leaders of the organization’s various functions to provide operational reports directly to the board on at least an annual basis. Additionally, we recommend that a board discuss these reports directly with management members, preferably without the participation of the CEO. Implementing such a protocol should strengthen the board’s ability to make decisions based on information from sources in addition to that of the CEO, improve the directors’ ability to independently evaluate members of the management team, and increase the directors’ understanding of the nonprofit’s activities and performance.

Keywords: Nonprofit, directors, governance, effectiveness

JEL Classification: L31

Suggested Citation

Kenagy, Robert and Fox, Mark and Vollrath, David, Enhancing Nonprofit Governance Through Better Information Flow to Directors (August 13, 2012). Available at SSRN: https://ssrn.com/abstract=2128907 or http://dx.doi.org/10.2139/ssrn.2128907

Robert Kenagy (Contact Author)

Indiana University ( email )

PO Box 7111
1700 Mishawaka Avenue
South Bend, IN 46634
United States

Mark Fox

Indiana University South Bend ( email )

South Bend, IN 46634
United States

David Vollrath

Indiana University South Bend - School of Business and Economics ( email )

PO Box 7111
1700 Mishawaka Avenue
South Bend, IN 46634
United States

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