Chief executives of nonprofit organizations gave their boards grades of D+ in fund-raising and C+ in increasing board diversity, according to a new national survey. The 2010 Nonprofit Governance Index, compiled by BoardSource, shows many organizations are still struggling from the recession: 41% cut or froze staff salaries, 29% laid off staff members or eliminated positions, and 28% dipped into reserves or endowments. The survey included responses from 978 chief executives and 780 board members of nonprofit organizations.
The survey asked chief executives and trustees to rank their boards’ performance on 10 basic board responsibilities. Some of the lowest grades came in fund raising, community relations, and board recruitment.
Also, the survey showed that new disclosure rules in the Form 990 are prompting organizations to put more accountability measures in place. The number of organizations with written conflict-of-interest policies roles from 88% in 2007 to 95% this year. Some 87% require annual statements disclosing potential conflicts, compared with 67% in 2007.
The 2010 Nonprofit Governance Index is available on the BoardSource Website.
Posted by Kathy Grochow, NRS, St. Cloud
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