Adding board members can help resource-starved nonprofits raise funds, but the practice likely makes the organization less effective and causes it to drift away from its mission. Those were the findings of Associate Professor of Finance Rajesh Aggarwal who studied the Internal Revenue Service (IRS) filings of more than 35,000 501(c)3 nonprofit firms.
"Nonprofit Boards: Size, Performance and Managerial Incentives" was co-authored with Mark Evans (Indiana University) and Dhananjay Nanda (University of Miami). The paper was published in the Journal of Accounting and Economics.
For more information on the Carlson School and its research, visit www.carlsonschool.umn.edu .
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