In fall 2014, the Stanford Graduate School of Business, in collaboration with BoardSource and GuideStar, surveyed 924 directors of nonprofit organizations about the composition, structure, and practices of their boards. The skills, resources, and experience of directors are not sufficient to meet the needs of most nonprofit organizations. Board processes fall short. Over a quarter of nonprofit directors do not have a deep understanding of the mission and strategy of their organization. Nearly a third are dissatisfied with the board’s ability to evaluate organizational performance. A majority do not believe their fellow board members are very experienced or engaged in their work.
Copyright held by David F. Larcker, Nicholas E. Donatiello, Bill Meehan, and Brian Tayan. Further inquiries about reproduction and use should be directed to the Corporate Governance Research Initiative.
