Boards and CEO’s: Views on Governance
How CEO’s and Boards Graded Board Performance
Share of Boards That Have Adopted Accountability Measures
Chief
executive
Board
members
100
95%
88%
86%
Understanding organization’s mission
3. 33
3.65
83%
Financial oversight
3. 15
3. 36
75
Legal and ethical oversight
2.97
3. 19
64%
60%
Providing guidance and support to the chief executive
2.86
3. 24
50
Level of commitment and involvement
2.81
3.04
Knowledge of organization’s programs
2.76
3. 12
Evaluating the chief executive
2.75
3.06
25
Understanding board responsibilities
2.72
2.97
Monitoring organizational performance
2.61
2.87
0
Strategic planning and thinking
2.56
2.94
Conflict-of-interest
policy
Whistleblower
policy
Document retention and
destruction policy
Recruiting new board members
2. 16
2.62
2007
2010
Community relations and outreach
2.04
2.70
Increasing board diversity
1.98
2. 39
Nonprofit Board Members and CEO’s: a Portrait
Fund raising
1. 29
2. 25
Key: A= 4, B= 3, C= 2, D= 1, F=0
Board*
Chief
executive
Race/ethnicity
Most Important Areas for Board Improvement
Caucasian
84.0%
88.0%
Chief
executive
African American/Black
8.0
4.0
Board
Hispanic, Latino, or Spanish
4.0
2.0
Fund raising
53%
54%
Asian
3.0
0.6
Strategic planning
34
37
Multiracial
0.7
6.0
Focus (more strategic, less operational)
31
27
American Indian or Alaska Native
1.0
0.2
Board composition and diversity
30
24
Native Hawaiian or Pacific Islander
0.2
0.2
Board member commitment, engagement, attendance
27
28
Gender
Board self-assessment
27
17
Female
48.0
64.0
Board recruitment
27
27
Male
52.0
36.0
Board development/orientation
25
23
Age
What Boards With Fund-Raising Requirements Do
Under 30 years
2.0
0.5
30-39 years
12.0
6.0
71%
Make a personal contribution
40-49 years
29.0
18.0
60%
Attend fund-raising events
50-64 years
43.0
65.0
58%
Identify donors
65+ years
14.0
10.0
42%
Solicit funds
As reported by chief executives
SOURCE: BoardSource
Boards Often Disappoint in Fund-Raising and Diversity Efforts, Study Finds
Publication: PHL
Filename: 2304BoardReportCard
Colors used: 4
Size: 5 x 64 lines
Date: 11/17/10
Time: 4 pm
Version: 3
SP
EM
CB
Editor
Reporter
Other
By Eric Frazier
Chief executives of nonprofit
organizations gave their boards
grades of D+ in fund raising
and C+ in increasing board di-
versity, according to a new na-
tional survey.
The 2010 Nonprofit Gov-
ernance Index, compiled by
BoardSource, an organization
in Washington that focuses on
improving nonprofit boards,
shows many organizations are
still struggling from the reces-
sion: Forty-one percent cut or
froze staff salaries, 29 percent
laid off staff members or elimi-
nated positions, and 28 percent
dipped into reserves or endow-
ments. The survey included re-
sponses from 978 chief execu-
tives and 780 board members of
nonprofit organizations.
When asked to identify the
most pressing challenges facing
their groups, 60 percent of chief
executives identified money—or
the lack of it. Many pointed to
“financial stability” or “the econ-
omy.” One CEO wrote: “We’ll be
fine when things settle down,
but we’re still grasping during
the turbulence.”
The survey asked chief ex-
ecutives and trustees to rank
their boards’ performance on
10 basic board responsibilities.
Some of the lowest grades came
in fund raising, community re-
lations, and board recruitment.
More than two-thirds of boards
received a grade of C, D, or F in
those areas from chief execu-
tives. The trustees graded them-
selves more favorably, giving
themselves C’s in those areas.
Grades from both CEO’s and
board members soared highest
for understanding the organi-
zation’s mission, providing fidu-
ciary and legal oversight, and
board-chief executive relations.
Cultivates a productive, constructive
partnership with the chief executive
Fosters an environment that
builds trust among board members
Able to resolve conflict, build
consensus, and reach compromise
A Dearth of Diversity
The survey also revealed dis-
satisfaction about diversity ef-
forts. It showed more than 70
percent of chief executives said
they believe racial or ethnic di-
versity adds value to their or-
ganization’s mission. However,
just 28 percent of CEO’s sur-
veyed said they were satisfied
with the degree of ethnic diver-
sity on their boards.
The survey found 84 percent
of board members surveyed
were white, as were 88 percent
of CEO’s. The share of minority
board members rose slightly, up
to 16 percent from 14 percent
in 2007. Forty-eight percent of
board members were women, up
5 percent from 2007.
More than half of the groups
reported that they had built diversity into their statements of
values, but just 15 percent had
developed a plan for the board
to grow more inclusive.
81%
80%
Also, the survey showed that
new disclosure rules in the
Form 990, the informational
tax returns that charities file
with the Internal Revenue Service, are prompting organizations to put more accountability
measures in place. The number
of organizations with written
conflict-of-interest policies rose
from 88 percent in 2007 to 95
percent this year. Some 87 percent require annual statements
disclosing potential conflicts,
compared with 67 percent in
2007.
“The 2010 Nonprofit Governance Index” is available on the
BoardSource Web site at http://
www.boardsource.org.
Encourages board members to frame
and discuss strategic questions
Establishes clear expectations
