NEW SCRUTINY FOR NONPROFITS: As I’ve said here on numerous occasions, the nonprofit sector is awash in money and far more powerful than it used to be, but drastically lacking in transparency and oversight by comparison to the corporate world. More thoughts from Todd Zywicki, who observes: “I understand that other nonprofit institutions have been moving in a different direction, toward less board independence, less accountability, less transparency, larger board size, and a more powerful executive committee. Amazingly, these developments sometimes are even justified under the rubric that they constitute ‘best practices’ of board practice.”
UPDATE: A reader sends this Financial Times link, too: “Philanthropic bodies, charities and non-governmental organisations are, indeed, businesses in the eyes of the law. Yet, perversely, today’s FTSE or Nasdaq companies are far more transparent, accountable and responsibly governed than the typical wealthy foundation or charity. More damning, corporate results are measured in the marketplace while philanthropic results are not. That invites mischief and mismanagement.” Indeed.