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ABSTRACT. Improved governance is necessary if nonprofits are to meet their social missions. In this regard, one major issue is the influence that nonprofit chief executives have on providing information to nonprofit boards that are largely comprised of volunteers. To counterbalance 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. pp. 33–43

Keywords: nonprofit, governance, information flow, director, management

ROBERT T. KENAGY
Judd Leighton School of Business & Economics
Indiana University South Bend
MARK A. FOX
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Judd Leighton School of Business & Economics
Indiana University South Bend
DAVID VOLLRATH
Judd Leighton School of Business & Economics
Indiana University South Bend

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