Desired board capabilities for good governance in non-profit organizations
Desired board capabilities for good governance in non-profit organizations

Summary/Abstract: Non-profit organizations (NPOs) significantly influence society as they support socio-economic growth. Within these organizations, NPO boards play a critical role in ensuring that they are appropriately governed. Despite considerable interest in understanding the role of NPO boards, a review of literature reveals that research has primarily focused on the role of NPO boards in for-profit organizations. This paper draws specific attention to boards in NPOs by critically reviewing literature that includes industry publications and a survey of NPO board members. The findings reveal that experience, expertise and social relations are most desired capabilities in NPO board members. These capabilities are consistent with those discussed in relation to board human capital. Having identified these desired capabilities, the listed capabilities of 358 directors from 50 selected NPOs in Malaysia were examined to determine the extent to which Malaysian NPO board members possessed the aforementioned capabilities. The results revealed that only 34% of board members possessed evidence of all three capabilities while 32% possessed two capabilities, namely experience and expertise. The findings serve to extend knowledge about the desired capabilities of NPO directors. An appreciation of these capabilities have implications for NPOs as their success is dependent on ensuring that the most qualified board members are appointed, and this in turn makes organizational synergy possible.

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