An Investigation of the Link between Governance And Performance in Nonprofit Organizations (original) (raw)

Our study looks at a large sample of U.S. charities that raised over $70 BB in donations during the time of our study. We find that the governance plays a crucial role in helping charities do what their donors expect: give more money to the mission that they aim to serve. Our results suggest that the professionalization of n onprofit organizations more should benefit their stakeholders, and help these organizations create more value by reducing the agency problems that plague all t ypes of o rganizations. Therefore, the link between for-profit and nonprofit organizations, and what helps these two types of organizations achieve their goals, may be more similar than previously thought.