A new study finds that grant-makers are increasingly interested in the development of their grantees' governance structures, according to an article in the current issue of the Chronicle of Philanthropy. BoardSource and FSG Social Impact Advisers jointly issued the report.
The report's title is "Advancing Good Governance: How Grantmakers Invest in the Governance of Nonprofit Organizations." The authors interviewed people from 54 grant-making organizations, including foundations and corporations. The found that most granters are working at strengthening the boards of the organizations they fund.
Kathy K. Hedge, one of the report's authors, says that funders are aware of the "power dynamics" that exist between those who are giving the money and those who are receiving it. She believes funders try to mitigate this inevitability.
The Chronicle reports that Hedge believes granters are not just concerned about due diligence, but about real board education. "It's not just about, Is the board meeting their legal requirements, but going beyond that in the spirit of trying to be helpful."
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The full text of the report is available in PDF form from BoardSource.