Nonprofit and Voluntary Sector Quarterly

 

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Nonprofit and Voluntary Sector Quarterly, Vol. 35, No. 4, 588-604 (2006)
DOI: 10.1177/0899764006289765

The Governance of Nonprofit Organizations: Empirical Evidence From Nongovernmental Development Organizations in Spain

Pablo de Andrés-Alonso

University of Valladolid

Natalia Martín Cruz

University of Valladolid

M. Elena Romero-Merino

University of Valladolid

To verify the existence and relevance of control mechanisms that impede the expropriation of resources by the managers of nonprofits and that improve efficiency, we use a representative sample of Spanish nongovernmental development organizations (NGDOs). The authors study how the donors’ structure and board of trustees relates to organizational efficiency. Results show that the presence of an active institutional donor provides a control mechanism for these NGDOs, thus favoring the efficient allocation of resources, and that the structure of the board of trustees is irrelevant in this respect. Results are robust to alternative measures of technical and allocative efficiency.

Key Words: nonprofit governance • board of trustees • nongovernmental development organizations • efficiency


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