March 3, 2010
Adapting to New Realities
With significant government and watchdog oversight and the demands of various constituencies for transparency, your organization's governance has never been more important. Grant Thornton is pleased to announce the release of its 2009 National Board Governance Survey for Not-for-Profit Organizations, which provides insight into how not-for-profit organizations are reacting to this heightened scrutiny.
According to this year's survey, the vast majority of organizations responded by cutting costs, seeking new revenue streams, reducing endowment spending, enhancing governance practices and reassessing their strategic plans. Specific issues that Boards and management teams focused on include:
- The economic downturn: Nearly nine in 10 (87%) respondents reduced expenses, while nearly six in 10 (57%) reduced personnel. More than half (53%) delayed capital projects.
- Governance: Boards made a number of policy changes in 2009, implementing procedures such as requiring the board and/or one of their committees to review the Form 990 before filing with the IRS (55% of boards). They also adopted policies relating to investment (39% of boards), records-retention (32%) and whistle-blower (26%) policies in 2009.
- Fiscal oversight: A volatile market and staggering losses for a number of organizations led nearly six in 10 (58%) to rebalance their investment portfolios. Almost four in 10 (39%) respondents also made changes to their investment policies in 2009, up from 27 percent in 2008.
- Executive compensation: Nearly three-quarters (73%) of respondent organizations now have formal policies in place to review executive compensation.
Click here to download the 7th Annual Board Governance Survey for Not-for-Profit Organizations.
Source: Grant Thornton LLP/Understanding the Times: NAMB Periodic Nonprofit Tax/Financial Update 03.3.2010
Source: NAMB Periodic Nonprofit Tax/Fin Update 03.3.10
This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.