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Good nonprofit governance requires that an organization be accountable to multiple parties. While this may seem benign and obvious, it can be challenging and more complicated than first appears. Different philosophies of governance can result in different organizational emphasis.
Agency and stewardship theory have a foundation in what Tony Watson called the "systems-control" approach. This relies on a top-down structure that assumes that the organization will benefit from decisions made by senior leaders.
However, other governance theories, such as stakeholder theory and democratic theory, suggest that organizations can benefit from synthesizing multiple groups, priorities, and moral frameworks. Organizations with a social-change mission may find these approaches useful, but they also have their limits.
Case studies of organizations which have used different approaches to governance are informative and enlightening.
Selected Grant News Headlines
A customized collection of grant news from foundations and the federal government from around the Web.
The CEO of the nation's second-oldest civic monument has been ousted over allegations of financial impropriety at Dallas' Fair Park, the Dallas Morning News reports. On May 1, Brian Luallen...more
The winner of this year's Sustainova Startup Challenge in Saudi Arabia has a message for the rest of the world: "If you want to save the planet, you have to start now." The startup contest,...more
"I didn't want to acknowledge any life challenges I had along the waywhich left me feeling burnt out from not showing my whole self," says Trish Boes, founder and CEO of UnlimitMe. But now, she...more
Foundation: Gates Foundation
One of the world's richest men is pushing to make Hong Kong a "philanthropic hub" in the region. The city's chief executive, Leung Chun-ying, says he wants to make it "a bridge between China and...more
"When I came to Harare from Zaka, I had nobody and knew nobody, but I had to define my career path and carve my own niche, hence the confidence that all these important people here now have in...more
Illinois American Waterthe largest regulated water and wastewater utility in the USis making a splash in its home state with a $200,000 donation to help clean up the Ohio River. The utility has...more
It's not every day that a small town gets to throw out the first pitch at a Minnesota minor league baseball game, but that's exactly what's happened in Winnebago. The Mankato MoonDogs are holding...more
Foundation: Whitefish Community Foundation
"But wait. We're not done yet." That was the message from Lois Davis, CEO of the Whitefish Community Foundation, as it handed out $520,300 in grants to 68 nonprofit organizations in the...more
If you've got a strong work ethic and the ability to work nights and weekends, a warehouse job might be just what you're looking for. The Children's Place, a children's clothing and gear company...more
There's a "revolutionary innovation" in education that could make it a lot easier for parents to track their kids' progress, according to a post at Education Week. Permanent Education Numbers, or...more
Social Entrepreneurship
Spotlight
Social Enterprise: Reaching Out to the Private Sector for Help
John Converse Townsend, a Forbes contributor, shares what can the private sector do for a social enterprise. He encourages social enterprises to reach out to corporations for help to scale up their businesses.
