Endowments

Whitepaper: The Top Five Governance Issues Facing Nonprofits Today

By Quanda Allen, First Vice President, SunTrust Foundations & Endowments Specialty Practice

“The greatest threat to the not-for-profit sector is the betrayal of public trust.”

Joel Fleishman, Scholar, Author, Professor of Law and Public Policy, and Director of the Heyman Center on Ethics, Public Policy and the Professions, Duke University

What are the most common governance challenges facing nonprofit organizations today? What steps should our leadership and board take to avoid common governance pitfalls? At SunTrust, we often hear organizations grapple with questions related to conflicts of interest, risk management, outcome measurement, investment oversight, and ethics.

Considering several recent examples of nonprofits entangled in scandal, it is prudent that organizations address governance challenges now to avoid potential pitfalls in the future. Empowering nonprofits with information, tools, and resources to overcome these challenges is a vital step to inspiring the highest level of confidence from stakeholders.

1 2012 NACUBO-Commonfund Study of Endowments

2 2007 The Urban Institute Study, Nonprofit Governance in the US

3 Michael Peregine, "Price of Board Inaction: $5.5-Million for One Charity", Chronicle of Philanthropy, January 14, 2013.

4 National Center for Charitable Statistics - nccsdataweb.urban.org/PubApps/profile1.php?state=US

SunTrust Foundations and Endowments Specialty Practice Banking and trust products and services are provided by SunTrust Bank. SunTrust Bank may use or offer the services of affiliate companies as well as third party entities to achieve your banking and investment objectives. Where applicable, any affiliations and all pertinent provider information will be disclosed in accompanying agreements and prospectuses.

SunTrust Banks, Inc. has entered into an agreement with Federated Investors, Inc. relating to Federated's acquisition of the RidgeWorth money market funds. SunTrust Bank may receive compensation in exchange for services ("fees for services") that it provides to various Federated money market mutual funds. These fees for services shall be in addition to, and will not reduce, SunTrust Bank's compensation for serving in a fiduciary capacity. Such fees for services will not be paid by your account, but will be paid to SunTrust Bank by Federated or by the money market mutual fund itself. The compensation rate for such fees for services shall be up to 0.10% annually (10 basis points) of the total amount of the account assets invested in the Federated money market mutual fund.

SunTrust Foundations and Endowments Specialty Practice is a federally registered service mark of SunTrust Banks, Inc. SunTrust PortfolioView, and SunTrust eGrants are service marks of SunTrust Banks, Inc.

SunTrust Bank and its affiliates and the directors, officers, employees and agents of SunTrust Bank and its affiliates (collectively, “SunTrust”) are not permitted to give legal or tax advice.  While SunTrust can assist clients in the areas of estate and financial planning, only an attorney can draft legal documents, provide legal services and give legal advice.  Clients of SunTrust should consult with their legal and tax advisors prior to entering into any financial transaction or estate plan.  Because it cannot provide legal services or give legal advice, SunTrust’s services or advice relating to “estate planning” or “wealth transfer planning” are limited to (i) financial planning, multi-generational wealth planning, investment strategy, (ii) management of trust assets, investment management and trust administration, and (iii) working with the client’s legal and tax advisors in the implementation of an estate plan.

These materials are educational in nature.  The implications and risks of a transaction may be different from individual to individual based upon past estate, gift and income tax strategies employed and each individual’s unique financial and familial circumstances and risk tolerances.  

This content does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

Related