Legal Accountability and Nonprofit Governance: An Exploratory Quantitative Study of Board Member and Executive Knowledge of Fiduciary Duties

United States nonprofits are governed by boards of directors who have legal responsibilities based on the fiduciary duties of care, loyalty, and obedience. Boards, along with the chief executive, are held responsible to fulfill these standards which are designed to hold nonprofits legally accountable to carry out their tax exempt purpose by using organizational resources for the intended purpose, avoid conflict of interest, and ensure compliance. However, despite this weighty responsibility and the voluntary nature of nonprofits, no standardized process exists to educate nonprofit leaders about their legal responsibilities. While governance is a key area of nonprofit research, there is limited empirical evidence about how nonprofit leaders satisfy legal accountability demands. Using quantitative methods, this three paper dissertation establishes baseline data about nonprofit leader fiduciary knowledge, source of knowledge, and application of knowledge in their governance activities. A survey tool developed for this study yielded 186 responses from San Diego County nonprofit leaders. Using role and board service as the primary demographics, the results show that most nonprofit leaders believe they have enough knowledge of the fiduciary duties and frequently use their knowledge in the performance of their governance duties. However, when tested for actual knowledge, only 41% of board members and 70% of executives passed. When analyzed by board service, 56% of those who served on one to four boards in the past 15 years and 31% of those who have served on five or more boards passed. Further results show that nonprofit leaders were more likely to rely on informal sources of knowledge, such as conversations with their colleagues and other board members and less on more formalized sources, such as board orientations or a board manual, regardless of role or board service. Implications of this study point to the need for increased fiduciary duty knowledge amongst nonprofit leaders. Furthermore, this study can inform regulators, funders, and practitioners to develop standards and fund training to strengthen nonprofit accountability. As nonprofit leaders understand their fiduciary duties more fully, they are empowered to make decisions about organizational resources that uphold their legal responsibilities to carry out the mission

2014 North County Senior Connections: Needs Assessment and Asset Mapping

In December 2013, the Rancho Santa Fe Foundation (RSFF) commissioned the Caster Center for Nonprofit and Philanthropic Research (Caster Center) at the University of San Diego to conduct a Phase I research study to provide RSFF Grants and Projects Committee (GPC) with relevant data and research needed to help make informed decisions about a new program titled “North County Senior Connections” (NCSC).https://digital.sandiego.edu/npi-seniors/1004/thumbnail.jp

2015 Food and Function: An Assessment of the Capacity of Food Pantry Programs in San Diego County

Food pantry programs play a critical role in meeting a basic need for thousands of individuals and families each year. They are the front-line support mechanism for providing short-term or emergency assistance to those struggling with food insecurity. San Diego County has a wide variety of food pantry programs that are helping to meet the need of thousands of hungry residents across the region. In 2012, several of the major emergency food provider agencies in San Diego County gathered to discuss how collaboration could support cost-saving efficiencies in the food distribution network, and subcommittees were formed to collaborate on achieving specific objectives. This report presents the findings of one of the four subcommittees, whose objectives were to: 1) identify specific operational and procedural components and best practices of food pantry programs, and 2) survey local food pantries to better understand their capacity and needs in order to enhance current and potential partnerships among food banks and food pantries.https://digital.sandiego.edu/npi-foodsecurity/1000/thumbnail.jp

State of Nonprofits Annual Report: 2015

For nearly a decade, The Caster Family Center for Nonprofit and Philanthropic Research (Caster Center) has gathered and analyzed data to tell the story of San Diego’s diverse, growing, and influential nonprofit and philanthropic sector. This year’s State of Nonprofits and Philanthropy report documents the increased economic impact of the sector as revenue, assets, and employment continue to grow. Furthermore, our State of Nonprofit Quarterly Index (SONP) and survey data from nonprofit leaders indicate that, overall, the sector is moving in a positive direction.https://digital.sandiego.edu/npi-stateofnp/1002/thumbnail.jp

State of Nonprofits Annual Report: 2016

The 2016 State of Nonprofits and Philanthropy report analyzes the health of San Diego’s nonprofit sector, identifies important trends, and reports on leadership perspectives. In addition to an annual summary of the Caster Center’s State of Nonprofits Quarterly Index (SONP Index) this report draws on the most recently available data about nonprofits from the Internal Revenue Service (IRS) and the California Employment Development Department (EDD). These data are synthesized with feedback from Trend Reporters1 along with the 2016 Nonprofit Leader Survey sent to executive level management in San Diego County to provide the most comprehensive picture of San Diego’s nonprofit and philanthropic sector available (See Appendix A for more information about data sources).https://digital.sandiego.edu/npi-stateofnp/1003/thumbnail.jp