ABSTRACT

The maturation of NGOs around the world has led, inevitably, to a keen interest in their governance. This interest is inevitable for several reasons. First, more mature organizations are generally larger and more complex. With growth comes increased pressure from donors, beneficiaries, media and other external stakeholders for more information, better programmes and more meaningful guarantees against malfeasance and mismanagement. Second, post-Enron efforts to strengthen corporate governance worldwide have had a spill over effect on NGOs. Though this trend may originate in new regulations aimed at businesses, it is reinforced by the NGO sector’s increasingly intimate relationship with the private sector in terms of funding and shared management practices and personnel. Finally, internal tensions in maturing NGOs themselves lead to a new appreciation for functioning boards. Chief executives who have single-handedly led smaller NGOs find that in growing organizations they are no longer able to exercise all leadership roles simultaneously. An engaged and competent board can provide the leadership capacity any larger organization needs to operate efficiently while meeting the expectations of a proliferating number of stakeholders.