New survey on board governance released

Grant Thornton released in November the results of an online survey of 960 nonprofit chief executives, CFOs and board members representing 46 states, the District of Columbia.

The 2006 survey is the fourth in a series beginning in 2003. According to Grant Thornton, increased demands for accountability from Congress, the IRS and donors has led to significant changes including:

• Accountability – Boards now take oversight duties more seriously and increasing attention is being paid to internal controls and financial reporting.
• Transparency – Organizations are now providing more information about governance, finances and operational results.
• Independence – Boards are maintaining independence from management,and auditors are protecting their independence from management and boards.

The survey includes specifics, such as the percentage of nonprofits that report having conflict of interest policies, audit committees, investment policies, records-retention policies, etc.

It also asked respondents to assess the most important task of a board of directors. Four out of 10 said strategic planning is the most important task, 22 percent say fundraising and oversight of management, 14 percent say ensuring effective programs and just 3 percent say protecting the organization’s reputation.

Respondents were also asked how many directors serve on their board; 40 percent said between 15 and 30, 39 percent said 6 to 15 and 11 percent said 30 to 30, while 6 percent say 1 to 5 and 4 percent say 50 or more.

Also surveyed were the types of board committees organizations have, term limits, frequency of executive sessions and the use of audit committees. Click here to download a copy of the survey report.