Interest in corporate governance has waxed and waned for more than 50 years, driven by recurrent cycles of “big business” scandals. Against the backdrop of this battlefield is a seemingly more serene landscape of non-profit institutions. However, despite outward appearances, non-profits often present splendid dramas of spoiled and conflicting ambitions.
Non-profits consist of all organisations that provide services or products to a community or association without the purpose of distributing a profit. This innocent definition poses a myriad of trivial to major complications and implications. The definition is sufficiently broad to cover not only classic non-profits, such as private schools and universities, hospitals and charities, but also co-operatives and mutuals, non-governmental organisations and industry associations. Despite the stipulation of “no profit distribution”, the potential still exists for profit-like payments to be captured by various groups – for example management, workers, suppliers and board members – or that ineptitude may waste the volunteered time and money.
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