NONPROFIT GOVERNANCE TAKEAWAYS – EXAMPLES FROM FOUNDATIONS ASSOCIATED WITH CORPORATIONS
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Abstract
Nonprofit organizations serve a crucial role in society, prioritizing public welfare over profit maximization. However, evaluating nonprofits’ effectiveness poses challenges due to their diverse objectives. Governance structures significantly impact organizational performance yet assessing this impact in nonprofits is complex due to varied goals and regulatory leniency compared to for-profits. This thesis paper explores the applicability of corporate governance practices – Agency Theory, Stewardship Theory, and Resource Dependence Theory – to nonprofits, focusing on national foundations associated with corporations. Using a qualitative approach and case studies of eight national foundations, the study investigates their adherence to governance theories and benefits from corporate affiliations. Findings suggest a strong alignment with Resource Dependency Theory, facilitated by shared leadership between foundations and corporations, enhancing resource acquisition and utilization, and strategic alignment. This research contributes valuable insights into nonprofit governance, particularly for foundations, with implications for societal impact and governance best practices.