Board Practices of Especially Effective and Less Effective Local Nonprofit Organizations

TLDR

The study examines whether nonprofit effectiveness is linked to board effectiveness and whether recommended board practices influence board performance. It analyzes a subset of especially effective and less effective nonprofit organizations drawn from a larger sample. Results show that especially effective nonprofits have more effective boards that employ more recommended practices, and that greater use of these practices is associated with other correct procedures, supporting the promotion of these practices.

Abstract

This study reviews evidence in support of the hypothesis that nonprofit organizations’effectiveness is related to the effectiveness of their boards of directors. It also asks whether various recommended board practices and processes affect board effectiveness. The study focuses on a subset of especially effective and less effective nonprofit organizations from a larger sample. The results show that the especially effective organizations (as judged by multiple stakeholders) have more effective boards (as judged by different multiple stakeholders) and that the more effective boards use significantly more of a set of recommended board practices. The results also show that nonprofit organizations using more of the prescribed board practices are also more likely to use other correct procedures. The results support the practical implication of urging the dissemination and adoption of the recommended practices.